If a sum of Rs. 12500 is invested for 1 year at 12% per

If a sum of Rs. 12500 is invested for 1 year at 12% per annum interest being compounded semiannually, then interest earned is :

If interest is compounded semiannually , then
Rate of interest = 12% per annum = 6% per half–year , Time = 2 half years
Here , P = Rs. 12500

∴ C.I. = P			1 +	R		^T	− 1
				100

C.I. = 12500			1 +	6		²	− 1
				100

C.I. = 12500			1 +	3		²	− 1
				50

C.I. = 12500			53		²	− 1
			50

C.I. = 12500		2809	− 1
		2500

C.I. = 12500		2809 - 2500
		2500

C.I. = Rs.		12500 × 309
		2500

∴ C.I. = Rs. 1545