Although I always use the continous rates in derivative problems, I found that Schweser uses Effective rates for the same. It has used continous in the examples though for the very same question type. Which methodology should i look to use on the exam day.
As the test is MCQ, you will get the answer no matter what rate you used.
I agree, the differences between a continous and a compound rate are too small to be exploited for wrong answers. Go with whatever you’re comfortable with.