1. **State the problem:** Find the amount after 8 years if 500 is invested at 9% interest compounded annually. 2. **Formula for compound interest:** $$A = P \left(1 + \frac{r}{n}\right)^{nt}$$ where $A$ is the amount, $P$ is the principal, $r$ is the annual interest rate, $n$ is the number of compounding periods per year, and $t$ is the number of years. 3. **Given values:** - $P = 500$ - $r = 0.09$ - $n = 1$ (compounded annually) - $t = 8$ 4. **Calculate the amount:** $$A = 500 \left(1 + \frac{0.09}{1}\right)^{1 \times 8} = 500 (1.09)^8$$ 5. Calculate $1.09^8$: $$1.09^8 = 1.999004$$ 6. Multiply by principal: $$A = 500 \times 1.999004 = 999.502$$ 7. Round to nearest cent: $$A = 999.50$$ **Final answer:** - Amount after 8 years: $999.50$