Solution:
Remember that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
P=$1,200
r=5.75%=0.0575
n=4
t=7 years
substitute the given values in the formula
[tex]A=1,200(1+\frac{0.0575}{4})^{4\cdot7}[/tex]
A=$1,789.54
