Question

In 1626, the Dutch bought Manhattan Island, now part of New York City, for $24 worth of merchandise. Suppose that, instead, $24 had been invested in an account that paid 3.5% interest each year. Find the balance in 2008.

Answer 1

2008 - 1626 -= 382

24 x (1.305)^382

= 12,229,955,10

Hope this helps

Answer 2

Answer:

The balance in 2008 is $12,229,955.10

Step-by-step explanation:

In 1626, the Dutch bought $24 worth of merchandise.

instead, $24 had been invested in an account that paid 3.5% interest each year, find the balance in 2008.

2008 - 1626 = 382 years

We calculate by compound interest formula :

A = $P(1+\frac{r}{n})^{(nt)}$

Where P = Principal amount ( $24)

           r = Rate of interest  3.5% ( 0.035 )

           t = 382 years

           n = number of compounding in a year ( 1 )

Now we put the values in formula

$24(1+\frac{0.035}{1})^{(1)(382)}$

= 24 ( 1.035 )$^{382}$

= 24 (509581.462506)

= $12,229,955.10

The balance in 2008 is $12,229,955.10