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According to an old myth, Native Americans sold the island of Manhattan about 400 years ago for $24. If they had invested this amount at an interest rate of 7 percent per year, how much, approximately, would they have today

Respuesta :

facundobuzzetti

Answer:

FV= $13,605,744,645,293.70  

Explanation:

Giving the following information:

Initial investment= $24

Number of years= 400

Interest rate= 7 percent compounded annually

To calculate the value of the investment today, we need to use the following formula:

FV= PV*(1+i)^n

FV= 24*(1.07^400)

FV= $13,605,744,645,293.70  

olayemiolakunle65

Answer:

They would have approximately $14 000 000 000 000.

Explanation:

From the compound interest formula,

Amount = P[tex](1 + \frac{r}{n}) ^{t}[/tex]

Given that: P = $24, R = 7%, t = 400 years,

Amount = 24[tex](1 + \frac{7}{100}) ^{400}[/tex]

 = 24[tex](\frac{107}{100}) ^{400}[/tex]

 = 1.360574465 × [tex]10^{13}[/tex]

The amount they would have is approximately $1.4 × [tex]10^{13}[/tex]

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