You Are Offered an Investment That Pays 8% APR Compounded

question 62

Multiple Choice

You are offered an investment that pays 8% APR compounded continuously.The effective annual rate for this investment is closest to:

• A)7.70%.
• B)8.00%.
• C)8.33%.
• D)8.50%.

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Definitions:

Professional Misconduct

Refers to inappropriate or unethical behavior by a professional in their occupation, often leading to disciplinary action.

Accountant

A professional who performs accounting functions such as audits or financial statement analysis.

Privity

A relationship between two parties that is recognized by law, such as a contractual relationship.

Contractual Relation

The connection between parties that is established by the terms and conditions of a contract.