Explanation:

Let's break it down:

- Simple Interest (SI) for 1 year at 16% per annum on a principal \( P \) is given by:

$$ \text{SI} = \frac{16}{100} \times P = 0.16 \times P $$

- For Compound Interest (CI) with the interest payable half-yearly:

- The interest rate per period is \( \frac{16}{2} = 8\% \).

- There are 2 periods in 1 year.

- \( \text{CI} = P \left(1 + \frac{8}{100}\right)^2 - P \)

- The difference between CI and SI for 1 year is Rs. 60:

$$ P \left(1.08^2 - 1\right) - 0.16P = 60 $$

- Solving this equation gives:

$$ P \left(1.1664 - 1\right) = 60 + 0.16P $$

$$ 0.1664P - 0.16P = 60 $$

$$ 0.0064P = 60 $$

$$ P = \frac{60}{0.0064} = 9375 $$

- Thus, the correct option is:

? Option 4: Rs. 9,375

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