Question

How much more would be in

Answer 1

Answer:

It will be $506.876 more.

Step-by-step explanation:

The equation for continuously compounded interest is given by  

$A = P(e)^{rt}$ .......... (1)

where, A is the final amount, P is the principal amount, r is the annual interest rate and t is the number of years.

Now, in our case, P = $500, r = 7% i.e 0.07 and t = 10 years.

Then, from equation (1),

$A = 500 \times (e)^{0.07 \times 10} = 1006.876$ dollars

Therefore, the interest will be (A - P) = $(1006.876 - 500) = $506.876. (Answer)