What is the amount after 2 years on Rs. 10,000 invested at a continuously compounded annual rate of 6%?
Correct answer: C. Rs. 11,274.97
- A. Rs. 11,200.00
- B. Rs. 11,236.00
- C. Rs. 11,274.97
- D. Rs. 11,360.00
Explanation
With continuous compounding, the amount is A = Pe^(rt). Thus, A = 10,000e^(0.06×2) = approximately Rs. 11,274.97. The simple interest result would be lower.
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