Final answer:
The maturity value of Thomas's 2-year, 12% certificate of deposit (CD) that compounds quarterly is approximately $139,345, which is obtained using the compound interest formula.
Step-by-step explanation:
Thomas deposited $110,000 in a 2-year, 12% certificate of deposit (CD) that compounds quarterly. To calculate the maturity value of the CD, we can use the compound interest formula: A = P(1 + r/n)(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the number of years the money is invested for.
In this case, P is $110,000, r is 0.12 (because 12% is 0.12 as a decimal), n is 4 (since interest is compounded quarterly), and t is 2 (because the CD is for 2 years). So, the formula becomes A = 110,000 (1 + 0.12/4) (4*2).
Now, let's calculate it:
A = 110,000 (1 + 0.03)8 (since 0.12/4 = 0.03)
A = 110,000 * (1.03)8
A = 110,000 * 1.26677 (approximately)
A ≈ 139,344.68
Therefore, the maturity value of the CD after 2 years is approximately $139,345, which corresponds to option (a).