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GMAT Paper Tests
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
OA D
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
OA D
