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The island of Manhattan was sold for $24 in 1626. Suppose the money had been invested in an account which compounded interest

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Answer #1

II)

In the year 2010, there would be about 11.33 trillion dollers in the account.

= $24 * e^(384years *0.07)

= $24 * e^26.88

= $24* 0.472 trillions

= $11.33 trillions

Part (b):

In the year 1826 and 142 days, the balance reach to $1 biilion

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