Answer
$7.9\%$ compounded daily
Work Step by Step
Case 1. Given $r=0.08$, let $t=1$, we have $A_1=P(1+\frac{0.08}{2})^{2}\approx1.0816P$
Case 2. Given $r=0.079$, let $t=1$, we have $A_2=P(1+\frac{0.079}{365})^{365}\approx1.0822P$
Thus case 2 with $7.9\%$ compounded daily is better.
