A 2-year certificate of deposit is purchased for K dollars. If the certificate earns interest at a n annual rate of 6 percent compound quarterly, which of the following represents the value, in dollars, of the certificate at the end of 2 years? Select the correct option: A) k(1.06)^2 B) k(1.06)^8 C) k(1.015)^2 D) k(1.015)^8 E) k(1.03)^4
term (n) = 2   value of k at the end of 2 yrs, if compounded annually=k(1+r)^n=k(1+0.06)^2   quarterly int. rate (r) = 1.5%   term (n) = 2x4 = 8   value of k at the end of 2 yrs, if compounded qtrly =k(1+r)^n=k(1+0.015)^8   ANSWER:k(1.015)^8
<result>D</result>
A 2-year certificate of deposit is purchased for K dollars. If the certificate earns interest at a n annual rate of 6 percent compound quarterly, which of the following represents the value, in dollars, of the certificate at the end of 2 years?