Let's use the compound interest formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where:
A = Amount
P = Principal = $1200
r = interest rate = 10% = 0.1
t = time = 1
n = Number of times interest is compounded = 4
so:
[tex]\begin{gathered} A=1200(1+\frac{0.1}{4})^4 \\ A\approx1325 \end{gathered}[/tex]
Answer:
$1325
