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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 the one year would be

- higher than the amount obtained when the interest rate is compounded monthly
- lower than the amount obtained when the interest rate is compounded annually
- equal to $1.365$ times the principal amount
- equal to the amount obtained when using an effective interest rate of $27.18 \%$