Step 1 :Given the principal amount \(P = \$18,000\), the annual interest rate \(r = 10\% = 0.10\), the number of times that interest is compounded per year \(n = 4\) (since interest is compounded quarterly), and the time the money is invested for \(t = 3.5\) years.
Step 2 :We use the formula for compound interest \(A = P(1 + r/n)^{nt}\), where \(A\) is the amount of money accumulated after \(n\) years, including interest.
Step 3 :Substitute the given values into the formula to find the compound amount: \(A = 18000(1 + 0.1/4)^{4*3.5} \approx \$25433.53\).
Step 4 :To find the amount of compound interest, subtract the principal from the compound amount: \(interest = 25433.53 - 18000 \approx \$7433.53\).
Step 5 :Final Answer: The compound amount is \(\boxed{\$25433.53}\) and the compound interest is \(\boxed{\$7433.53}\).