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%/year compounded quarterly over a period of 5 years. How much will the investment be worth at the end of 5 years?

Answer 1

in millions,

4.2(1+.054/4)^(4*5)

Answer 2

$5.491921.88