applying your standard formula, that would be
4.2M(1 + 0.054/4)^(4*5) = 5.49M
or more precisely,
$5,491,921.88
The manager of a money-market fund has invested $4.2 million in certificates of deposit that pay interest at
the rate of 5.4% per year compounded quarterly over a period of 5 years. How much will the investment be
worth at the end of 5 years?
1 answer
2 answers