REAL ESTATE INVESTMENT: In 1626, Peter Minuit traded trinkets worth $24 to a tribe of Native Americans for land on Manhattan Island. Assume that in 1990 the same land was worth $25.2 billion. If the sellers in this transaction had invested their $24 at 7% interest compounded continously during the entire 364-year period, who would have gotten the better end of the deal? By how much?

Please help me choosing an equation and solving it.

Question

REAL ESTATE INVESTMENT: In 1626, Peter Minuit traded trinkets worth $24 to a tribe of Native Americans for land on Manhattan Island. Assume that in 1990 the same land was worth $25.2 billion. If the sellers in this transaction had invested their $24 at 7% interest compounded continously during the entire 364-year period, who would have gotten the better end of the deal? By how much?

Please help me choosing an equation and solving it.

alexwee123 · Answer

use the compounded continuously formula 
|dw:1338702402517:dw|

alexwee123 · Answer

P = principal amount (initial investment)
r = annual interest rate (as a decimal)
t = number of years
A = amount after time t

alexwee123 · Answer

so for this problem P would be 24, R=0.07, and T=364