Answer:
FV= $634.12
Step-by-step explanation:
Giving the following formula:
Initial investment (PV)= $500
Number of periods (n)= 3*4= 12 quarters
Interest rate (i)= 0.08/4= 0.02
To calculate the future value, we need to use the following formula:
FV= PV* (1 + i)^n
FV= 500*(1.02^12)
FV= $634.12
