Asked by Jay
In 1626, Peter Minuit traded trinkets worth $24 for land on Manhattan Island. Assume that in 2014 the same land was worth $4 trillion. Find the annual rate of interest compounded continuously at which the $24 would have had to be invested during this time to yield the same amount. (Round your answer to one decimal place.)
Answers
Answered by
Steve
Just use the usual growth formula. It took 388 years, so
24e^(388r) = 4*10^12
24e^(388r) = 4*10^12
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