https://file.aiquickdraw.com/mathbot/file/1730270319520oc4fp2ax.jpg

To solve this question, we can use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{100}\right)^n
\]

where:
- \( A \) is the amount after \( n \) years,
- \( P \) is the principal (initial investment),
- \( r \) is the annual interest rate, and
- \( n \) is the number of years.

In this case:
- \( P = 500 \),
- \( r = 7\% \),
- \( n = 2 \) years.

Let's calculate \( A \):

\[
A = 500 \left(1 + \frac{7}{100}\right)^2
\]
\[
= 500 \left(1.07\right)^2
\]
\[
= 500 \times 1.1449
\]
\[
= 572.45
\]

So, the amount after 2 years will be approximately **Rs. 572.45**.

The correct answer is **not among the options provided in the image**, but the calculation confirms that **Rs. 572.45** is the final amount after 2 years at a 7% compound interest rate.

Would you like a detailed explanation on the compound interest formula, or have any other questions?

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### Related Questions:
1. How is compound interest different from simple interest?
2. What would the final amount be if the interest were compounded semi-annually instead of annually?
3. How would the answer change if the investment period were 5 years instead of 2?
4. What would be the future value if the interest rate was 10% instead of 7%?
5. How does increasing the compounding frequency (e.g., monthly) affect the final amount?

### Tip:
To calculate compound interest for longer periods, using a financial calculator or spreadsheet can save time and reduce errors.

You invest Rs.500 at an annual interest rate of 7% compounded annually. How much will you have after 2 years?

Find out how much an investment of Rs.500 grows over 2 years with a 7% annual interest rate, compounded annually. Learn to apply the compound interest formula and understand exponential growth concepts. Suitable for students in Grades 9-10.

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