You are offered an investment that offers and effective annual rate of 8%. If this investment offers continuous compounding, then the APR for this investment is closest to:

A) 7.70%
B) 8.00%
C) 8.25%
D) 8.33%

A
Explanation: A) APR = ln(1 + EAR) = ln(1.08 ) = 0.076961

Business

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