Given the interest as 16% the effective rate can be seen below.
Explanation
The formula can be seen below.
[tex]\begin{gathered} effective\text{ rate\lparen compounded continuously\rparen=}e^i-1 \\ =e^{\frac{16}{100}}-1=e^{\frac{4}{25}}-1=0.17351=17.351\text{\%} \end{gathered}[/tex]Answer: 17.351%
