Michael's father advised him to invest his tuppence instead of spending it, and we calculated that...

 

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Michael's father advised him to invest his tuppence instead of spending it, and we calculated that even if he invested it for sixty years he would have only 2.03. However, given a long enough time to grow, even a tiny investment can become large. The British crown has taken out numerous small loans over the centuries and has not bothered to repay them. Suppose that in 1732 the British crown borrowed two pence (0.02), just like Michael's, with an interest rate of 7.75% per year. How much has this debt grown to by the year 2020? Write your answer in pounds. Michael's father advised him to invest his tuppence instead of spending it, and we calculated that even if he invested it for sixty years he would have only 2.03. However, given a long enough time to grow, even a tiny investment can become large. The British crown has taken out numerous small loans over the centuries and has not bothered to repay them. Suppose that in 1732 the British crown borrowed two pence (0.02), just like Michael's, with an interest rate of 7.75% per year. How much has this debt grown to by the year 2020? Write your answer in pounds.