Final answer:
To calculate the value of Andrea's savings account after 8 years compounded monthly at 2.5%, we use the formula A = P(1 + r/n)^(nt). Plugging in the values, we find that the value of her account after 8 years is $1912.56.
Step-by-step explanation:
To calculate the value of Andrea's savings account after 8 years compounded monthly at 2.5%, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the final amount in the account
P = the initial amount ($1700 in this case)
r = annual interest rate (2.5% = 0.025)
n = number of times interest is compounded per year (12 in this case)
t = number of years (8 in this case)
Plugging in the values, we get:
A = 1700(1 + 0.025/12)^(12*8)
Solving this equation, we find that the value of her account after 8 years is $1912.56.