There is much folklore regarding Peter Minuit's purchase of Mahattan Island in 1626 from a Native American tribe.let's assume that his purchase price was as often mentioned, 24 US dollars. if that amount were placed in an account paying 5% annual interest and allowed to compound annually until 2015, how much would be in the account?
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Principal Amount = P = $ 24
Interest rate = 5 % per annum So r = 5
Number of years of deposit = 2015 - 1626 = 389 years
Interest is compounded annually.
So number of times interest is compounded = n = 389
Amount that would accumulate to, in the account, in 2015:
Interest rate = 5 % per annum So r = 5
Number of years of deposit = 2015 - 1626 = 389 years
Interest is compounded annually.
So number of times interest is compounded = n = 389
Amount that would accumulate to, in the account, in 2015:
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