1990 - 1626 = 364 (I see where this is going :)
1.07^364 = 4.9624 *10^10 !!!!!!
times 24 = 1.19 * 10^12
their return at 7% is far better
1.19 * 10^12 - 2.52 * 10^7
LOL, forget it. 25.2 billion is not even in the ball game.
In 1626, Peter
Minuit traded trinkets worth $24 to a tribe of
Native Americans for land on Manhattan Island.
Assume that in 1990 the same land was worth $25.2 billion. If the sellers in this transaction had
invested their $24 at 7% annual interest compounded continuously during the entire 364-year period, who would have gotten the better
end of the deal? By how much?
1 answer
1 answer