Final answer:
To find the interest earned, we use the compound interest formula A = P(1 + r/n)^(nt). Plugging in the given values, we calculate the final amount and subtract the principal amount to find the interest earned.
Step-by-step explanation:
To calculate the compound interest, we use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the time in years. In this case, Ram deposited Rs 850 in NBL at an 8% half-year rate for 1 year. So, the interest rate becomes 8%/2 = 4% and the time is 1 year. Plugging these values into the formula, we have A = 850(1 + 0.04/2)^(2*1). Calculating this, we find that A = 850(1.02)^2 = 850 * 1.0404 = Rs 884.34. Finally, to find the interest earned, we subtract the principal amount from the final amount: 884.34 - 850 = Rs 34.34. Therefore, Ram will get Rs 34.34 as interest.