Question

What is the future value of $500 deposited for one year earning a 8 percent interest rate annually?

Answer 1

The future value of $500 after one year at a rate of interest 8% is $540.

Given that the deposited amount is $500,number of year is one and rate of interest is 8%.

We are required to find the future value of money after 1 year.

Future value of something is the money value which we will get after some years at some rate of interest. In our case we have not given that the amount is compounding or not. Because the number of year is 1 so we can find the amount through the formula of simple interest and compound interest as well.

Principal amount=$500

Rate of interest=8%

Number of year=1

Future value=P$(1+r)^{n}$

=500$(1+0.08)^{1}$

=500*(1.08)

=$540

Hence the future value of $500 after one year at a rate of interest 8% is $540.

Learn more about future value at brainly.com/question/24703884

#SPJ4