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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.

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.

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