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
