The formula for calculating compound interest is expressed as
A = P(1 + r/n)^nt
Where
A is the total amount after t years
P is the principal or initial amount invested
r is the interest rate
n is the number of compouding periods in a year
t is the number of years
From the information given,
A = $1750
r = 3% = 3/100 = 0.03
t = 5
n = 4 because it was compounded quarterly
By substituting these values into the formula, we have
1750 = P(1 + 0.03/4)^4 * 5
1750 = P(1 + 0.03/4)^20
1750 = P(1.0075)^20
Dividing both sides by (1.0075)^20, it becomes
P = 1750/(1.0075)^20
P = 1507.0822
Approximating to the nearest whole number,
Principal = $1507