Answer:
$ 15,264.78
Explanation:
Using the excel formula FV() you can calculate the amount to be received after 12 years. The diagram will be: Period Amount Payment interest Amount + interest
1 8,500.00 425.00 8,925.00
2 8,925.00 446.25 9,371.25
3 9,371.25 468.56 9,839.81
4 9,839.81 491.99 10,331.80
5 10,331.80 516.59 10,848.39
6 10,848.39 542.42 11,390.81
7 11,390.81 569.54 11,960.35
8 11,960.35 598.02 12,558.37
9 12,558.37 627.92 13,186.29
10 13,186.29 659.31 13,845.60
11 13,845.60 692.28 14,537.88
12 14,537.88 726.89 15,264.78
