Solution: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.100 × 2008 × 1 = Rs.2500
Amount for 2 years, compounded half-yearly
Rs.2500 × 1.41404 = Rs.2924.4
C.I = Rs.424.64
Also, S.I = Rs.2500 × 8 × 2/100 = Rs.400
Hence, [(C.I) − (S.I)] = Rs. (424.64 − 400)
= Rs.24.64