After 540 years, the balance obtained by investing $215 at a rate of 2% with annual compounding, will be

Answer 1

A=P(1+r)^t for yearly compounding

r= interest rate = 2% = 0.02

P= Investment = $215

t = years= 520

A = Amount after t years at r interest

deceptively makes you a multmillionaire

A =215(1.02)^520

use a calculator

= $7,413,602.98 and a 1/2 cent

= $7,413,602.99 rounded up to nearest cent. (complain to the bank if you don't get that extra half cent)

= about 7 1/2 million

sometimes called the "miracle" of compound interest

but since you're long gone by then the government will likely take it all, one way or another, death taxes or whatever, leaving your heirs with zip. Even if not, inflation above 2% will mean the investment of $215 is worth less than $215 in purchasing power, after any number of year, and close to zero after half a century. So the $7+ million is a little deceptive. Better to leave some gold in a secure vault somewhere.