Question

$24 worth of goods, including beads, trinkets, cloth, kettles, and axe heads. Many people find it laughable that Manhattan Island would be sold for $24, but you need to consider the future value (FV) of that price in more current times. If the $24 purchase price could have been invested at a 5.25% annual interest rate, what is its value as of 2018 (392 years later)

Answer 1

FV= $12,338,893,301

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $24

Number of periods (n)= 392 years

Interest rate (i)= 5.25% compounded annually

To calculate the value of the initial investment today, we need to use the following formula:

FV= PV*(1+i)^n

FV= 24*(1.0525^392)

FV= $12,338,893,301