7. Adam and Sasha Brooks have EE bond interest of $3,500 on bonds bought in January 1997 and redeemed in November 2020, all of which is used for qualified higher educational purposes for their daughter. The couples modified adjusted gross income is $138,550. How much is their excludable interest on the bonds?

a) $0

b) $420

c) $1,750

d) $3,500