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
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)
