(adsbygoogle = window.adsbygoogle || []).push({}); 1. The problem statement, all variables and given/known data

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

a) How much money would be in the account in the year 2005 if the yearly interest rate was:

i: 5%? ii: 7%

3. The attempt at a solution

I put the numbers into the function P_{0}e^{rt}and got

i:24e^{.05(379)}and ii:24e^{.07(379)}

but when I put that in my calculator I get VERY large numbers:

i: 4074662794 and ii: 7.980752573_{E}12

For some reason, I don't think the homework answers would be such ridiculously large numbers. Did I do this right?

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# Homework Help: Continuously compunded interest

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