URCES Chapter 1, Section 1.7, Question 038 n 1.5 The island of Manhattan was sol

Question

URCES Chapter 1, Section 1.7, Question 038 n 1.5 The island of Manhattan was sold for 4 in 1626. Suppose the money had been invested in an account which compounded interest continuously on 1.5 on 1.5 ion1 tion 1.5 tion is, tion 1.5 ction 1.5 ction 1L.5 Incorrect (a) How much money would be in the account in the year 2012 for the following yearly interest rates? Pay attention to the units after the answer areas. Round your answers to two decimal places. (i) 496 12.9 bilion dollars in the account. In the year 2012, there would be about trillion dollars in the account. ection 16, In the year 2012, there would be about

Explanation / Answer

Formula for compound interest continuously is

A=Pert

a. i. T=2012-1626=386

A=24e386(0.04)=$121819844.92

ii. r=7%

A=24e386(0.07)= $13027111872499.99

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