Please answer the following question. Show working/formula/explanation where needed.

1. You currently have $1,350,000 in a savings account at a local bank earning 2.5% rate per annum. The bank is asking you to convert this savings balance into a certificate of deposit. Consider this offer as $1,350,000 investment in a one-year bank certificate of deposit (CD) today and rolled over annually for the next three years into one-year CDs. Calculate the future value of the $1,350,000 investment. The future value will depend on the one year CD rate each time the funds are rolled over as negotiated with the bank. Assume that the one-year CD rate today is 2.5% and that it is expected that the one-year CD rate one year from now will be 2.9%, and the one-year CD rate two years from now will be 3.2%, and the one-year CD rate three years from now will be 3.4%