At what interest rate, compounded annually, would 1/1,000,000 of 1 cent be worth 1 penny in 1,000 years from now? Serious question given by our Math teacher to see if we understand compound interest! Thanks for help.
FV = PV (1+i)^n
1 = 1x10^-6 (1+i)^1000
1/1x10^-6 = (1+i)^1000
10^6 = (1+i)^1000 take log of both sides
6 = 1000 log(1+i)
6/1000 = log (1+i) raise 10 to both sides
10^(6/1000) = 1+i
i=1.3911%