If you invest $500 for a year at an interest rate of 8% each year, you will end up with $540 in your account at the end of that year.
This is further explained below.
Generally, A present asset's future value, abbreviated as FV, is the value that asset is expected to have at some point in the future, based on a projected rate of growth. Because investors and financial planners use it to predict how much money an investment made now will be worth in the future, the future value is very significant to these professions.
Interest for the year = 8/100 *500
Interest for the year = 40
therefore,
future value = 500+40
future value = $540
In conclusion, the future value of $500 deposited for one year earning a 8 percent interest rate annually is
$ 540.00
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