# Exponential Word Problem

posted by
**Jus**
.

An investment pays 3.5 percent interest, compounded quarterly.

a) write an equation to express the amount A, of the investment as a function of time, t, in years.

The answer is

A(t)=P(1.00875)^4t

Ok, but my question is this:

Why isn't the equation

A(t)=P(1.035)^4t, if the interest percent is 3.5% wouldnt it make sense that it's 1.035 in the equation and not 1.00875. Could someone clarify for me if I am right or wrong, and why.