Answer:
Compound interest function,
The amount when compounded annually after 8 years is $
Step-by-step explanation:
Topic: Compound Interest
To model the situation, we'll make use of the compound interest formula. The formula is as follows:
---- This is the compound interest function
Where
r = Rate = 2.5% = 0.025
n = Period = Annually = 1
t = Time = 8 years
P = Principal Amount = $17,400
A = Amount ---- This is the function we want to model
By Substitution, we have





Hence, the amount when compounded annually after 8 years is $
(Approximated)