- 38720
- 3862
- 3672
- 67200

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.
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