Compound monthly and continuously

Question

in 1885, a person sold a house to lady for $24. if the lady had put the $24 into a bank account paying 5% interest, how much would the investment have been worth in the year 2010 if interest were compounded in the following ways?

Answer 1

Compound monthly:

A=P(1+r/n)^(nt)

Where:

P = 24

r=0.05

t = 2010-1885=125

n = 12

Compound continuously:

A = Pe^(rt)

Where:

P=24

r= 0.05

t=125

e=e