A \(2\)-year certificate of deposit is purchased for \(k\) dollars. If the certificate earns interest at an annual rate

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A \(2\)-year certificate of deposit is purchased for \(k\) dollars. If the certificate earns interest at an 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?

A. \(k(1.06)^2\)
B. \(k(1.06)^8\)
C. \(k(1.015)^2\)
D. \(k(1.015)^8\)
E. \(k(1.03)^4\)

Answer: D

Source: GMAT Paper Tests