Final answer:
The 1st quarter interest for a $3,500 deposit in a savings account with a 7.5% interest rate compounded quarterly is approximately $67.38.
Step-by-step explanation:
To find the 1st quarter interest, we need to use the formula:
Interest = Principal × (1 + Rate/Number of Compounding Periods)^(Number of Compounding Periods × Time)
In this case, the Principal is $3,500, the Rate is 7.5%, the Number of Compounding Periods per year is 4 (since it is compounded quarterly), and the Time is 1 quarter.
Plugging these values into the formula:
Interest = $3,500 × (1 + 0.075/4)^(4 × 1)
Calculating this, the 1st quarter interest would be approximately $67.38.