Answer
The value of the $500 invested at 2.5% after 20 years = $819.31
Step-by-step explanation
The amount that an initial amount, A₀, becomes at a compound interest of r% over a period of time, t, is given as
A = A₀ (1 + r)ᵗ
where
A = Value of the money saved over a period of time t
A₀ = Initial value of the money saved = $500
r = Rate = 2.5% yearly = 0.025
t = Time = 20 years
A = A₀ (1 + r)ᵗ
A = 500 (1 + 0.025)²⁰
A = 500 (1.025)²⁰
A = 500 (1.6386)
A = $819.31
Hope this Helps!!!