Question 1088950
annuity is 800 every quarter.
time periods are quarters
4 years * 4 time periods a year = 16 time periods.
interest rate percent of 12% per year / 4 = 3% per quarterly time period.
you want the future value of the annuity.


the following time value of money calculator will do it for you.


<a href = "https://arachnoid.com/finance/" target = "_blank">https://arachnoid.com/finance/</a>.


inputs are:


present value = 0
future value = 0
number of periods = 16
payment amount = 800
interest rate per period % = 3
select payment at end of time period


click on FV and the calculator tells you that the future value of the annuity is equal to -16,125.5


if you had entered the payment as negative, then the future value would have been positive.


your solution is that the future value of the annuity is $16,125.5


here's a picture of the results of the use of the calculator.


<img src = "http://theo.x10hosting.com/2017/072801.jpg" alt="$$$" </>


if you want to calculate it manually, use the following formula.


FUTURE VALUE OF AN ANNUITY WITH END OF TIME PERIOD PAYMENTS 

f = (a*((1+r)^n-1))/r 

f is the future value of the annuity.
a is the annuity.
r is the interest rate per time period.
n is the number of time periods 


make sure to use the parentheses exactly as shown, otherwise you won't get the right answer.


a = 800
r = .03 (rate = rate percent divided by 100)
n = 12


you will get a future value of $16,125.5


this agrees with the calculator results.