It will be worth $745.89 assuming compounding 365 times per year. The formula for compound interest is
A = P * (1 + (r/n))^(nt)
A = total return of both principal and interest
P = principal invested ($500)
r = interest rate expressed as a decimal (.05)
n = number of compounding periods per year (365)
t = time in years (8)
thus the answer is $754.89