Question

The DeHaven family, tracing lineage back to the American Revolution, claims that in December 1777 their ancestor Jacob DeHaven loaned George Washington $450,000 in gold and supplies which helped turn the tide of the war. Recall that the future value of a loan is:

a) Not possible to calculate with the given information
b) Dependent on inflation rates
c) $450,000
d) Undetermined

Answer 1

The claim that Jacob DeHaven loaned George Washington $450,000 in gold and supplies during the American Revolution cannot be determined accurately due to the depreciation of the Continental currency and inflation.

Step-by-step explanation:

The claim that Jacob DeHaven loaned George Washington $450,000 in gold and supplies during the American Revolution is not possible to calculate with the given information. The Continental Congress relied heavily on borrowing money, both from foreign nations and wealthy patriots, to finance the war effort. The Continental currency quickly depreciated in value due to inflation and the issuance of large amounts of paper money. Therefore, the future value of the loan cannot be determined accurately.