what is the annual return of a $24 investment at 6.1% for 381 years?
To calculate the annual return of an investment, you can use the compound interest formula. The formula for calculating compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (starting investment)
r = annual interest rate (expressed as a decimal)
n = number of times interest is compounded per year
t = number of years
In this case, the principal amount (P) is $24, the annual interest rate (r) is 6.1% (0.061 as a decimal), the investment is compounded annually (n = 1), and the time (t) is 381 years.
Using this information, we can substitute the values into the formula and calculate the annual return:
A = 24(1 + 0.061/1)^(1 * 381)
A ≈ 24(1.061)^381
Now you can calculate the annual return by raising 1.061 to the power of 381 and then multiplying the result by the principal amount:
A ≈ 24 * 1.061^381
Using a calculator or a spreadsheet program, you can obtain the approximate value of the annual return.