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An investment was purchased for $7,887,699.11. After four years and three months this investment was worth $12,111,545.32. What is the continuously compounded return on the

An investment was purchased for $7,887,699.11. After four years and three months this investment was worth $12,111,545.32. What is the continuously compounded return on the investment, and by how much would the return need to increase to achieve the same dollar outcome if the investment had been a simple interest investment?

a.

12.85% and the simple interest return would need to be 0.53% lower

b.

10.62% and the simple interest return would need to be 1.98% higher

c.

10.09% and the simple interest return would need to be 0.53% higher

d.

10.09% and the simple interest return would need to be 2.51% higher

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