Answer:
C. 10.16%
Explanation:
Appreciation of a currency increases the value of one's return on investment depending on the percentage of appreciation.
Original interest rate before appreciation = 8%
Since the interest rate appreciated by 2%,
2% of 8 will give
[tex](\frac{2}{100}\times 8)=0.16%[/tex]
New value of interest = 8% + 0.16% = 8.16%
Effective return on investment = 8.16% + 2 % = 10.16%
∴The effective return from the the investment is = 10.16%
