Question

Approximately 395 years ago, the Dutch settler, Peter Schaghen, purchased Manhattan Island from the Lenape Indians for 60 guilders (about $35 USD) worth of various commodities. Assume the Lenape Indians sold the commodities and invested the $35 earning a 7.5% annualized compounded return. What would their investment be worth today (395 years later)

Answer 1

the investment be worth today is $90 trillion

Step-by-step explanation:

The computation of the investment be worth today is shown below:

Amount = $35 × (1 + 0.075 ÷ 1)^1.395

= $35 × 1075^1.395

= $90 trillion

Hence, the investment be worth today is $90 trillion

Basically we applied the above method to compute the same so that the correct amount could come