The great grandparents of one of your classmates sold their munitions factory to the government in beginning of 1898 during the Spanish-American War for $150,000. If these proceeds had been invested at 6% from then until the end of 2001 the legacy to your classmate's family would be worth how much today (assume whole years)?

Question

Quizplus · Accepted Answer

The correct answer is B. The proceeds would have been invested for 104 years (2001 - 1898). The amount of interest earned over that time period would be $150,000 * 0.06 * 104 = $936,000. The total amount of money in the account at the end of 2001 would be $150,000 + $936,000 = $1,086,000.

The Great Grandparents of One of Your Classmates Sold Their