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Assume the Lenape Indians sold the commodities and invested the $35 earning a 7.5% annualized compounded return. What would their investment be worth today (395 years later)

Respuesta :

pedrocarratore

Answer:

$90 trillion

Explanation:

The equation that describes compound interest is:

[tex]FV = PV*(1+r)^t[/tex]

Where "FV" is the future value, "PV" is the present value ($35), "r" is the interest rate (0.075) and "t" is the time invested, in years (395).

Applying the given data, their investment would be worth:

[tex]FV = 35*(1+0.075)^{395}\\FV = \$89,209,565,422,347.12[/tex]

Their investment would be worth roughly $90 trillion today.