Exponential Equation Help

Question

In 1626, Peter Minuit traded trinkets worth $24 for land on Manhattan Island. Assume that in 2014 the same land was worth $4 trillion. Find the annual rate of interest compounded continuously at which the $24 would have had to be invested during this time to yield the same amount. (Round your answer to one decimal place.)

Answer 1

A = Pe^rt

4,000,000,000 = 24e^r388

166,666,667 ≈ e^r388

ln 166666667 ≈ 388r

18.9315 ≈ 388r

0.04879 ≈ r