Jack wants to buy a boat today today but has realised that if he takes out a loan he can only repay $500 quarterly, with payments made at the beginning of each quarter, over the next 9 years. How much can he spend on his boat today if the interest rate is 8.2% per annum compounded quarterly?

a.

$12642.68

b.

$12901.85

c.

$3097.63

d.

$3351.64