Chemical Engineering > GATE 2021 > Interest Calculation
A principal amount is charged a nominal annual interest rate of 10%. If the interest rate is compounded continuously, the final amount at the end of one year would be
A
higher than the amount obtained when the interest rate is compounded monthly
B
lower than the amount obtained when the interest rate is compounded annually
C
equal to 1.365 times the principal amount
D
equal to the amount obtained when using an effective interest rate of 27.18%

Correct : a

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