Answer
$\$ 493.47$
Work Step by Step
Recall:
Continuous Compounding Formula
$$A = P e^{r t}$$
where
$P:$ The principal amount
$r:$ Annual interest rate
$t:$ Number of years
$A:$ Amount after $t$ years
The given problem has:
$P= \$ 400, r = 0.07, t=3$
Useing these values and the formula above gives:
$A = 400 \times e^{0.07 \times 3}$
$A \approx \$ 493.47$
