Respuesta :
Answer:
The balance in 2008 is $12,229,955.10
Step-by-step explanation:
In 1626, the Dutch bought $24 worth of merchandise.
instead, $24 had been invested in an account that paid 3.5% interest each year, find the balance in 2008.
2008 - 1626 = 382 years
We calculate by compound interest formula :
A = [tex]P(1+\frac{r}{n})^{(nt)}[/tex]
Where P = Principal amount ( $24)
r = Rate of interest 3.5% ( 0.035 )
t = 382 years
n = number of compounding in a year ( 1 )
Now we put the values in formula
[tex]24(1+\frac{0.035}{1})^{(1)(382)}[/tex]
= 24 ( 1.035 )[tex]^{382}[/tex]
= 24 (509581.462506)
= $12,229,955.10
The balance in 2008 is $12,229,955.10
