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    Compound Intrest

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    In 1777, Jacob DeHaven loaned George Washington's Army $450,000 in gold and supplies. Due to a disagreement over the method of repayment 9gold vs. Continental money), DeHaven was never repaid, dying penniless. In 1989, his descendants sued the US Government over the 212 year old debt. If the DeHaven's used an intrest rate of 6% and daily compounding (the rate offered by the Continental Congress in 1777), how much money did the DeHaven family demand in their suit?
    Compound intrest formula is: n=360 and t=212years.

    © BrainMass Inc. brainmass.com December 24, 2021, 8:50 pm ad1c9bdddf
    https://brainmass.com/math/consumer-mathematics/consumer-math-finacial-managment-compound-intrest-318204

    SOLUTION This solution is FREE courtesy of BrainMass!

    P = 450000, r = 6%/360 = 0.06/360 = 0.000167, t = 212 * 360 = 76320

    A = P(1 + r)^t

    A = 450000(1 + 0.000167)^76320 = 1.54179 * 10^11 = 154.179 billion

    The family demanded 154.179 billion dollars.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 8:50 pm ad1c9bdddf>
    https://brainmass.com/math/consumer-mathematics/consumer-math-finacial-managment-compound-intrest-318204

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