Question

DID YOU KNOW, in 1626, Peter Du Minuit traded beads and blanket (valued at $24) to the Native American inhabitants of Manhattan Island for the island. a) What would the investment be worth in 2016 if at that time the $24 had been invested at 6% simple interest?

Answer 1

Answer: $585.60

Explanation:

The number of years that would have passed is;

= 2016 - 1626

= 390 years

Using simple interest, the investment will be worth;

= Principal * ( 1 + rate * number of years)

= 24 * (1 + 0.06* 390)

= $585.60