Answer:
Your answer is 12.55%
Explanation:
First you will need to find your interest for the year. Seeing that it is compounded quarterly at 12%, you will divide 12%/4 = 3% each quarter.
FV=$80,000(1+0.03)^4
Your future value for the end of the year comes to $90,040.7048 without rounding. Subtract your principal to find interest.
$90,040.7048 - $80,000 = $10,040.7048
You will now take your interest and divide by your principal.
$10,040.7048 / $80,000 = 12.55% when rounded.
Hope this helps!
