Question

Suppose that in

16121612​,

a man bought a diamond for

​$3737.

Suppose that the man had instead put the

​$3737

in the bank at

33​%

interest compounded continuously. What would that

​$3737

have been worth in

20022002​?

In

20022002​,

the

​$3737

would have been worth

​$nothing.

​(Do not round until the final answer. Then round to the nearest dollar as​ needed.)

Answer 1

Solution :-

Given data,

Starting Principal ( P ) = $37

Interest Rate ( r ) = 3%

Number of Years ( Y )= 2002 - 1612

= 390 years

Number of Years ( Y ) = 390 years

Here we need to find out the Future worth .

Future worth = $4,461,153.45 ( By using Continuous compounding calculator i found this value )

Future worth =  $4,461,154 ( Rounded to nearest dollar )

Future worth =  $4,461,154

Note :-

By using this formula also we get the answer .

FV = Pe^Yr