Present value, P = Rs.10000

Interest rate, R = 12% per annum

Time, n = 1 years

∴ Amount (A) = P (1 + R/100)ⁿ × [1 + (R/2)/100] [Where, P = Present value

R = Annual interest rate

n = Time in years]

∴ A = 10000 (1 + 12/100)¹ × [1 + (12/2)/100]

⇒ A = 10000 (1 + 12/100) × [1 + 6/100]

⇒ A = 10000 (112/100) × [106/100]

⇒ A = 10000 × 112/100 × 106/100

⇒ A = 1 × 112 × 106

⇒ A = 11872

∴ Amount = Rs.11872

∴ Compound interest = Rs.(11872 – 10000) [∵CI = A – P]

= Rs.1872