Correct Answer - Option 1 : 38720
Given:
Principal = Rs. 32000
Rate of interest = 20%
Time = 1 year
Formula used:
A = P (1 + r/100)n
Where, A = Amount, P = Principal, n = Time, r = Rate of interest
Calculation:
When interest is compounded half yearly, then
R becomes 20%/2 = 10% and T becomes 2T
A = P (1 + r/100)n
⇒ A = 32000 × (1 + 10/100)2
⇒ A = 32000 × (11/10) × (11/10)
⇒ A = 32000 × (121/100)
⇒ A = 38720.
∴ The amount is Rs. 38720.
