Question
Asked By FrostyVoyage22 at
Answered By Expert
Clayton
Expert · 3.7k answers · 3k people helped
Solution By Steps
Step 1: Identify Variables
Principal (PV): $24
Interest Rate (I/Y): 5.75% per year
Number of Periods (N): 386 years
Future Value (FV): To be calculated
Step 2: Apply the Future Value Formula
The formula for future value is:
FV = PV imes (1 + r)^n
Where:

PV is the present value (initial amount)

r is the annual interest rate

n is the number of periods
Step 3: Substitute Values into the Formula
FV = 24 imes (1 + 0.0575)^{386}
Step 4: Calculate the Future Value
FV = 24 imes (1.0575)^{386}
Using a calculator to compute
(1.0575)^{386}:
(1.0575)^{386} \approx 1,939,720,544,284.38
Step 5: Multiply by the Principal
FV = 24 imes 1,939,720,544,284.38
FV \approx 46,553,293,062,825.12
Final Answer
The future value of $24 invested at 5.75% annual interest rate for 386 years is approximately $46,553,293,062,825.12.
This calculation demonstrates the power of compound interest over a long period, showing how a small initial investment can grow to an enormous sum given enough time and a reasonable interest rate.
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