When Lauren was born on January 1, 1990, her grandparents put $\$1000$ in a savings account in her name. The account earned $7.5\%$ annual interest compounded quarterly every three months. To the nearest dollar, how much money was in her account when she turned two?
The annual interest rate is 7.5 percent, so each quarter, the investment is compounded at the rate of $7.5/4 = 1.875$ percent.  In two years, there are eight quarters, so the investment will have grown to $1000 \cdot 1.01875^8 = \boxed{1160}$, to the nearest dollar.