Final answer:
To calculate the future value of an investment, use the compound interest formula: P = P0 * (1 + r/n)^(nt), where P0 is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Step-by-step explanation:
To calculate the future value (P) of an investment, you can use the compound interest formula: P = P0 * (1 + r/n)^(nt), where P0 is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
In this case, P0 = $3,750, r = 3.5% = 0.035, n = 12 (compounded monthly), and t = 20.
Plugging in the values into the formula, we get: P = 3750 * (1 + 0.035/12)^(12*20) = $7,649.94. Therefore, the future value of the investment after 20 years, compounded monthly, would be $7,649.94.