Question

In 1626 the Dutch bought Manhattan island, now part of New York City, for about $26 worth of merchandise Suppose that money was invested at an APR of 1.5%. How much would that investment be worth this year?

Answer 1

$10,032 (approx.)

Explanation:

You don't say whether this is simple interest or compound interest. I will assume that you meant compound interest. I will also approximate the time period as 400 years (1626 through 2026).

The appropriate formula is

A = P(1 + r)^t, where r is the annual interest rate as a decimal fraction, and t is the elapsed time in years

Here,

A = $26(1 + 0.015)^400

= $26(1.015)^400

= $26(385.8)

= $10,032 (approx.)