what is the future value of $500 invested at 8 percent for one year?
Assuming it's simple interest >>
500 * 1.08 = ?
To find the future value of an investment, you can use the formula for compound interest:
Future Value = Present Value * (1 + Interest Rate)^Number of Periods
In this case, the present value (P) is $500, the interest rate (r) is 8% (or 0.08), and the number of periods (n) is 1 year.
Now, let's plug in the values into the formula:
Future Value = $500 * (1 + 0.08)^1
Simplifying the equation:
Future Value = $500 * (1.08)^1
Calculating the exponent:
Future Value = $500 * 1.08
Multiplying:
Future Value = $540
Therefore, the future value of $500 invested at 8 percent for one year is $540.