Find the amount and the compound interest on Rs 12800 for 1 year at $7 \frac{1}{2} \%$ per annum, compounded semi-annually.
Principal, $P=$ Rs. 12800
Annual rate of interest, $R=\frac{15}{2} \%$
Rate of interest for a half year $=\frac{1}{2}\left(\frac{15}{2}\right) \%=\frac{15}{4} \%$
Time, $n=1$ year $=2$ half years
Then the amount with the compound interest is given by
$A=P \times\left(1+\frac{R}{100}\right)^{n}$
$=12800 \times\left(1+\frac{\frac{15}{4}}{100}\right)^{2}$
$=12800 \times\left(1+\frac{15}{100 \times 4}\right)^{2}$
$=12800 \times\left(\frac{400+15}{400}\right)^{2}$
$=12800 \times\left(\frac{415}{400}\right)^{2}$
$=12800 \times\left(\frac{83}{80}\right) \times\left(\frac{83}{80}\right)$
$=(2 \times 83 \times 83)$
$=$ Rs 13778
Therefore, compound interest $=$ amount $-$ principal $=\mathrm{Rs}(13778-12800)=$ Rs 978