Answer:
It will be $506.876 more.
Step-by-step explanation:
The equation for continuously compounded interest is given by
[tex]A = P(e)^{rt}[/tex] .......... (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),
[tex]A = 500 \times (e)^{0.07 \times 10} = 1006.876[/tex] dollars
Therefore, the interest will be (A - P) = $(1006.876 - 500) = $506.876. (Answer)
