Problema Solution
Ben Franklin's gift of $10,000 to New York City grew to $3,000,000 in 200 years. At what interest rate compounded annually would this growth occur?
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Ben Franklin's gift of $10,000 to New York City grew to $3,000,000 in 200 years. At what interest rate compounded annually would this growth occur?
Solution:
The rate is r
So
10000(1+r)^200 = 3,000,000
r=1.72%
So the interest rate compounded annually is 1.72%