#### Explanation:

Here we will use the compound interest formula below:

${A}_{t} = P {\left(1 + \frac{r}{n}\right)}^{n \cdot t}$

Where:

$P =$ Principal amount
$r =$ Annual rate
$n =$ Number of times compounded per year
$t =$ Number of years
${A}_{t} =$ Amount after t years

In this example:

${A}_{7} = 1200 {\left(1 + \frac{0.03}{2}\right)}^{7 \times 2}$

$= 1200 \times {\left(1.015\right)}^{14}$

$\approx 1200 \times 1.2317557$

=\$1,478.11 to nearest cent