Answer:
$11,372.99
Explanation:
Since in the question, he interest is compounded monthly while the payments are made on quarterly basis. To balance these two first we find out the EAR which is shown below:
The EAR is
= (1 + APR ÷ number of years)^number of years - 1
= (1 + 12% ÷ 12)^12 - 1
= 12.68%
Now in quarterly it is
= {(1 + EAR)^(1 ÷ 4) - 1} × 4
= {(1 + 12.68% ÷ 4)^(1 ÷4) - 1} × 4
= 12.12%
Now we use the future value formula that is shown in the attachment
Present value = $0
Rate of interest = 12.12% ÷ 4 = 3.03%
NPER = 3 years × 4 quarters = 12
PMT = $800
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after solving this, the future value is $11,372.99
