Write a compound interest function to model the following situation. then, find the balance after the given number of years.
$17,400 invested at a rate of 2.5% compounded annually; 8 years

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)