Final answer:
To find the future value of an investment with 12% appreciation, multiply the initial investment ($500) by 1.12 to get a future value of $560.
Step-by-step explanation:
To calculate the future value of an investment when it appreciates, we use the formula: future value = present value x (1 + interest rate). In this case, the student has an initial investment of $500, and it appreciates by 12% over one year. Here's how you do the calculation:
Determine the present value of the investment: $500
Calculate the appreciation rate: 12% or 0.12
Use the formula to calculate future value: future value = $500 x (1 + 0.12)
Calculate the result: future value = $500 x 1.12
Final computation: future value = $560
Therefore, the total value of the investment after one year will be $560.