Answer:
The dollar amount 8 years from now of $500 invested at 7% annual interest is $859.09
Step-by-step explanation:
In order to calculate the dollar amount 8 years from now of $500 invested at 7% annual interest we would have to calculate the following formula:
dollar amount=PV*(1+r)∧n
According to the given data we have the following:
PV=$500
r=7%
n=8
Therefore, dollar amount=$500*(1+0.07)∧8
dollar amount=$859.09
The dollar amount 8 years from now of $500 invested at 7% annual interest is $859.09
