In 1626, the Dutch bought Manhattan Island, now part of New York City, for $24.75 worth of merchandise. Suppose that, instead, $24.75 had been invested in an account that paid 3.75% interest each year. Find the balance in 2020

The balance in 2020 is $47,810,662.65576

Step-by-step explanation:

In order to find the balance in 2020, first we would have to calculate the number of year as follows:

number of years, t=2020-1626

number of years, t=394

Therefore, to calculate the balance in 2020, we would have to use the following formula:

f (t) = 24 (1.0375) ∧394

f (t) = 24*1,992,110.94399

f (t) = $47,810,662.65576

The balance in 2020 is $47,810,662.65576