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 4% interest each year. Find the balance in 2008.

Answer 1

Let’s say the interest has compounded for 392 years or (2008-1626=392)

We solve by 24(1.04^392) = 114,098,581