kadeesha invested $850 in an account paying an interest rate of 2.1% compounded annually. assuming no…

Explanation:

Step1: Recall compound interest formula

The formula for compound interest is $A = P(1 + \frac{r}{n})^{nt}$, where:

• $A$ is the amount of money accumulated after $n$ years, including interest.
• $P$ is the principal amount (the initial amount of money).
• $r$ is the annual interest rate (decimal).
• $n$ is the number of times that interest is compounded per year.
• $t$ is the time the money is invested for in years.

In this problem, since it's compounded annually, $n = 1$, $P=$850$, $r = 2.1%=0.021$, and $t = 17$ years.

Step2: Substitute values into the formula

Substitute $P = 850$, $r = 0.021$, $n = 1$, and $t = 17$ into the formula: [ \begin{align*} A&=850\times(1+\frac{0.021}{1})^{1\times17}\ &=850\times(1 + 0.021)^{17}\ &=850\times(1.021)^{17} \end{align*} ]

Step3: Calculate $(1.021)^{17}$

Using a calculator, $(1.021)^{17}\approx1.021^{17}\approx1.4147$ (you can calculate this by multiplying 1.021 by itself 17 times or using the exponent function on a calculator).

Step4: Calculate $A$

Multiply 850 by 1.4147: [ A\approx850\times1.4147 = 1202.495 ]

Step5: Round to the nearest dollar

Rounding 1202.495 to the nearest dollar gives 1202.

Answer:

$$1202$