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In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $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. f the $24 purchase price couid have been invested at a 4.25% annual interest rate, what is its value as of 2012 (386 years later)? O $300,708,524.86 O $193,638,065 25 O $261,980,911.81 $227,809,488.53

In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $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. f the $24 purchase price couid have been invested at a 4.25% annual interest rate, what is its value as of 2012 (386 years later)? O $300,708,524.86 O $193,638,065 25 O $261,980,911.81 $227,809,488.53

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, Indluding beads, trinkets, coth, kettles, and axe heads Many people find it laughable that Manhattan Island woukd be sold for $24, but yu need to consider the future value (FV) of that price in more cument times, If the $24 purchase price could have been Invested at a 4.25% annual interest rate, what is its value as of 2012 (386 years later)? O $300,708,524.86 O $193,638,065.25 O $261,990,911.81 0 1227,809.488.53
Transcribed Image Text:In 1626, Dutchman Peter Minuit purchased Manhattan Island from a local Native American tribe. Historians estimate that the price he paid for the island was about $24 worth of goods, Indluding beads, trinkets, coth, kettles, and axe heads Many people find it laughable that Manhattan Island woukd be sold for $24, but yu need to consider the future value (FV) of that price in more cument times, If the $24 purchase price could have been Invested at a 4.25% annual interest rate, what is its value as of 2012 (386 years later)? O $300,708,524.86 O $193,638,065.25 O $261,990,911.81 0 1227,809.488.53
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