Question

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)

Answer 1

$90 trillion

Step-by-step explanation:

The equation that describes compound interest is:

`FV = PV*(1+r)^t`

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:

`FV = 35*(1+0.075)^(395)\\FV = \$89,209,565,422,347.12`

Their investment would be worth roughly $90 trillion today.