SOLUTION: In 1854, a person sold a house to a lady for $30. If the lady had put the $30 into a bank account paying 5% interest, how much would the investment have been worth i
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Question 1150582: In 1854, a person sold a house to a lady for $30. If the lady had put the $30 into a bank account paying 5% interest, how much would the investment have been worth in the year 2009 if interest were compounded in the following ways?
a. monthly b. continuously
Answer by Alan3354(69443) (Show Source): You can put this solution on YOUR website!
In 1854, a person sold a house to a lady for $30. If the lady had put the $30 into a bank account paying 5% interest, how much would the investment have been worth in the year 2009 if interest were compounded in the following ways?
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2009 - 1854 = 155 years (from Jan to Jan, the times of years not stated)
a. monthly
155*12 = 1860 months
FV = $30*(1 + 0.05/12)^1860
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b. continuously
FV = $30*e^(0.05*155)
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