Mary got a loan of 1000 euros. The institution that made the loan charges a monthly fee of 1%.
Because, in the following 6 months, Mary has done no amortization of the loan, how much does she owe to the institution after those 6 months?
I could solve this problem 2 ways:
$$1000 \cdot e^{.01t} \approx 1061.84$$ or
$$1000 \cdot (1+.01)^6 \approx 1061.52$$
My book says the second one is correct, but since the values are so similar, are both solutions correct? If not, why?