Answer
$\$4587.79$
Work Step by Step
We use the interest formula (P=3500, r=0.07, t=1):
$I=Prt$
And apply it to each of the 4 years, adding the previous year's interest to the principal each time.
Year 1: $I=3500*0.07*1=245$
Year 2: $I=(3500+245)*0.07*1=262.15$
Year 3: $I=(3500+245+262.15)*0.07*1=280.50$
Year 4: $I=(3500+245+262.15+280.50)*0.07*1=300.14$
Thus the total compound amount is:
$3500+245+262.15+280.50+300.14=\$4587.79$
