The compound interest on Rs. 6250 at 12% per annum for 1 year, compounded halfyearly is
Principal amount = 6250
Half yearly r = $$ \frac{12}{2} = 6% $$
t = 2 years
6% of 6250 = $$ 6250 \times \frac{6}{100} = 375 $$
Amount = 6250 + 375 = 6625
6% of 6625 = $$ 6625 \times \frac{6}{100} = 397.5 $$
Amount = 6625 + 397.5 = 7022.5
Compound interest = 7022.5 - 6625 = 772.5
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