What is the future value of $500 one year from today if the interest rate is 6 percent?

Solution:

The annual compound interest can be found using the formula

Future value = Invested amount × (1 + rate)^{number of years}

It is given that

Future value = ?

Invested amount = $500

Number of years = 1

Rate = 6%

Substituting the values in the formula

Future value = 500 × (1 + 0.06)¹

By further simplification

Future value = 530

Therefore, the future value is $530.

What is the future value of $500 one year from today if the interest rate is 6 percent?

Summary:

The future value of $500 one year from today if the interest rate is 6 percent is $530.