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.)

asked by Jason N

8 years ago

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1 answer

4E12 = 24 * e^388r

ln(1.7E11) / 388 = r

answered by Scott

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Question

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.)

1 answer

4E12 = 24 * e^388r

ln(1.7E11) / 388 = r

Ask a New Question or answer this question.

Scott · Answer

4E12 = 24 * e^388r ln(1.7E11) / 388 = r