Suppose that a loan of \( \$ 5000 \) is given at an interest rate of \( 17 \% \) compounded each year. Assume that no payments are made on the loan. Follow the instructions below. Do not do any rounding. (a) Find the amount owed at the end of 1 year. \( \$ \square \) (b) Find the amount owed at the end of 2 years. \( \$ \square \)

Let's calculate the amount owed at the end of each year using the compound interest formula: \[ A = P \times (1 + r)^n \] where: - \( A \) is the amount owed, - \( P \) is the principal amount (\$5,000), - \( r \) is the annual interest rate (17% or 0.17), - \( n \) is the number of years. ### (a) Amount Owed at the End of 1 Year For \( n = 1 \): \[ A = 5000 \times (1 + 0.17)^1 = 5000 \times 1.17 = 5850 \] **Amount owed at the end of 1 year:** \(\$5850\) ### (b) Amount Owed at the End of 2 Years For \( n = 2 \): \[ A = 5000 \times (1 + 0.17)^2 = 5000 \times 1.3689 = 6844.5 \] **Amount owed at the end of 2 years:** \(\$6844.5\)