Principal (P) = Rs 10,000

Rate = 8% per annum or 4% per half year

Number of years = 1 year

There are 2 half years in 1 year.

A = P (1 + R/100)^{n}

= Rs [10000 (1 + 4/100)^{2}]

= Rs [10000 (1 + 1/25)^{2}]

= Rs (10000 x 26/25 x 26/25) = Rs 10816

C.I. = A − P = Rs 10816 − Rs 10000 = Rs 816