Answer:
$856.91 after 7 years
Step-by-step explanation:
Initial investment, P = 500
Interest rate, i = 8% (compounded once a year, i.e. annually)
Number of years, t = 7
Substitute in compound interest formula
Future value,
A = P (1 + 0.08/1) ^(1*7)
= 500 (1.08)^7
= 856.91 (to the nearest cent)
