Answer
$ \$ 626.61$
Work Step by Step
Present Value Formula
$$P=A \left(1+\dfrac{r}{n} \right)^{-n t}$$
$A:$ Amount to be recieved after $t$ years
$P:$ Present value
$r:$ Annual interest rate
$n:$ Number of compoundings per year
$t:$ Number of years
The given problem has:
$A = \$ 800, r=0.07, t = 3.5$
$\text{Compounded monthly} \to n = 12$
Thus, using the given values and the formula above gives:
$P=800\left(1+\dfrac{0.07}{12} \right)^{-12 \times 3.5}$
$P \approx \$ 626.61$
