Initial value, P = Rs.6250

Interest rate, R = 8% per annum

Time, n = 1 years

∵ Compounded half-yearly.

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

R = Annual interest rate

n = Time in years]

∴ A = 6250 [1 +(8/2) /100]²

⇒ A = 6250 [1 + 4/100]²

⇒ A = 6250 [1 + 1/25]²

⇒ A = 6250 [26/25]²

⇒ A = 6250 × 26/25 × 26/25

⇒ A = 6250 × 26/25 × 26/25

⇒ A = 250 × 26 × 26/25

⇒ A = 10 × 26 × 26

⇒ A = 6760

∴ Amount = Rs.6760

∴ Compound interest = Rs.(6760 – 6250) [∵CI = A – P]

= Rs.510