Answer & Explanation
For 1st year S.I =C.I.
Thus, Rs.16 is the S.I. on S.I. for 1 year, which at 8% is thus Rs.200
i.e S.I on the principal for 1 year is Rs.200
Principle = = Rs.2500
Amount for 2 years, compounded half-yearly
C.I = Rs.424.64
Hence, [(C.I) - (S.I)] = Rs. (424.64 - 400) = Rs.24.64