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. 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)? $12,338,893,300.81 $14,189,727,295.93 O $16,287,339,157.07 $10,488,059,305.69
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. 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)? $12,338,893,300.81 $14,189,727,295.93 O $16,287,339,157.07 $10,488,059,305.69
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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. 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)?
$12,338,893,300.81
$14,189,727,295.93
$16,287,339,157.07
$10,488,059,305.69](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F246f6db2-1dc3-454a-8242-1f5f62a81278%2F939cd3a0-7dc7-4d41-b84a-020b230a4a94%2Fl16rp2j_processed.png&w=3840&q=75)
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, 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)?
$12,338,893,300.81
$14,189,727,295.93
$16,287,339,157.07
$10,488,059,305.69
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