Answer:
[tex]\large\boxed{\large\boxed{\$ 2,536.05}}[/tex]
Explanation:
The compound interest formula is:
[tex]P=A(1+r)^t[/tex]
Where:
- P is the future value of the investment after t periods
- A is the amount of the only investment made ($1,200)
- r is the interest rate per period (4.5% interest)
- t is the number of periods (17 years in this case)
Substituting:
[tex]P=\$ 1,200(1+4.5\%)^{17}=\$ 1,200(1+0.045)^{17}=\\\\ P=\$ 1,200(1.045)^{17}=\$ 2,536.05[/tex]
