O DECIMALS, PROPORTIONS, PERCENTS Introduction to compound interest Suppose that a loan of $\$ 8500$ 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. (b) Find the amount owed at the end of 2 years. s]

Step 1 ：We are given a loan of $8500 at an interest rate of 17% compounded annually. We are asked to find the amount owed at the end of 1 year and 2 years.

Step 2 ：We use the formula for compound interest, which is \(A = P(1 + r/n)^{nt}\), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate (in decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.

Step 3 ：For this problem, P = $8500, r = 0.17, n = 1 (since it's compounded annually), and t = 1 year for part (a) and 2 years for part (b).

Step 4 ：Substituting these values into the formula, we get \(A1 = 8500(1 + 0.17/1)^{1*1} = 9945.0\) for the amount owed at the end of 1 year.

Step 5 ：For the amount owed at the end of 2 years, we substitute t = 2 into the formula to get \(A2 = 8500(1 + 0.17/1)^{1*2} = 11635.65\).

Step 6 ：Final Answer: The amount owed at the end of 1 year is \(\boxed{9945.0}\) and the amount owed at the end of 2 years is \(\boxed{11635.65}\).