# Chapter 6 - Section 6.7 - Financial Models - 6.7 Assess Your Understanding - Page 475: 14

\$493.47

#### Work Step by Step

We know the following equation for continuously compounding interest: $$A=Pe^{rt}$$ Where: P is the principal. A is the amount at the given time. r is the rate, expressed as a decimal. t is the time, in years. Thus, we obtain: $$A=400e^{.07*3} \\ A= 493.47$$

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.