Answer:
To determine the amount of the investment after 7 years, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment (the amount after 7 years)
P = the initial principal or investment amount ($2750)
r = the annual interest rate (3.5%)
n = the number of times the interest is compounded per year (quarterly)
t = the number of years the investment is held (7)
First, we convert the annual interest rate to a decimal: 3.5% = 0.035
Then we convert the interest rate to a quarterly rate by dividing by the number of times it is compounded per year: 0.035 / 4 = 0.00875
We can now substitute these values into the formula:
A = $2750(1 + 0.00875)^(4*7)
A = $2750(1.00875)^28
A = $2750(1.3471)
A = $3710.82
So, the amount of the investment after 7 years is $3710.82, rounded to the nearest hundredth.