Mike Is Considering Investing $18,500 in an Investment That Will

Multiple Choice

Mike is considering investing $18,500 in an investment that will have a maturity value of $32,500 in eight years. If the interest is compounded monthly, what is the effective annual rate of return earned on the investment?

A) 4.3%
B) 5.7%
C) 6.5%
D) 7.3%
E) 8.8%