To solve this problem, we need to use the compound interest formula:
A = P(1 + r/n)^(nt)
where:
A = final amount
P = principal amount
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = time in years
In this case, we have:
P = $700.00 (principal amount)
r = 4% = 0.04 (annual interest rate)
n = 4 (quarterly compounding)
t = 7 (time in years)
So, substituting the values into the formula:
A = $700.00(1 + 0.04/4)^(4*7)
A = $700.00(1.01)^28
A = $700.00(1.31976058416)
A = $923.83
Therefore, the balance after 7 years would be $923.83.