You Are Offered an Investment That Offers an Effective Annual

question 67

Multiple Choice

You are offered an investment that offers an 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%.

---

Definitions:

Invention

An invention is the creation of a new product, process, or idea that has not been made before, offering novel solutions to problems.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Diffusion

The process by which innovations, ideas, or technologies spread through cultures and societies.

Process Innovation

The development and use of new or improved production or distribution methods.