Answer:
The maturity value of the CD is $142,576
Explanation:
The computation of the maturity value of the CD is shown below:
As we know that
Maturity Value = Deposit made × (1 + rate of interest)^number of years
where
r = 12% ÷ 4 = 3%
And,
n = 3 × 4 = 12
Now
The Maturity Value of a Cash Deposit is
= $100,000 × (1.03)^12
= $142,576
hence, the maturity value of the CD is $142,576
