Answer
$\$609.50$
Work Step by Step
According to the Compound Interest Formula, where $P$ is the principal, the amount deposited, $r$ is the annual interest rate, $n$ is the number of times the interest is compounded annually, $t$ is the number of years, $A$ is the amount you get back after $t$ years:
$A=P\cdot(1+\frac{r}{n})^{n\cdot t}$
Here we have:
$t=2.5\text{ years}$
$r=8\%=0.08$
$P=\$500$
$n=4$ (since it is compounded monthly)
Substitute these values into the formula above to obtain:
$A=500\cdot(1+\frac{0.08}{4})^{4\cdot 2.5}\approx \$609.50$
