Find CI on a loan of ₹ 8,000 for 1 year at 9% per annum compounded half yearly.

Principal = ₹ 8000

There are 2 half years in 1 year.

Therefore, compounding has to be done 2 times.

Rate of interest = half of 9% = 4.5% half yearly.

$\mathrm{A}=\mathrm{P}{\left(1+\frac{\mathrm{R}}{100}\right)}^{\mathrm{n}}$

$=₹ 8000{\left(1+\frac{4.5}{100}\right)}^2$

$=₹ 8000{\left(1+0.045\right)}^2$

$=₹ 8736.2$

CI = Amount - Principal

CI = ₹ 8736.2 - ₹ 8000 = ₹ 736.2.