To calculate Keith's equivalent rate with simple compounding, we need to use the following formula:
r = (e^(i/n) - 1) * n
where r is the equivalent rate with simple compounding, i is the interest rate with continuous compounding, and n is the number of compounding periods per year.
In this case, we are given that i = 8.27% and we can assume that the number of compounding periods per year is 12, since many loans are compounded monthly. Plugging these values into the formula, we get:
r = (e^(0.0827/12) - 1) * 12
= (1.0082 - 1) * 12
= 0.0082 * 12
= 0.0984 or 9.84%
Therefore, Keith's equivalent rate with simple compounding is [B] 0.0998 or 9.98%.