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sdas [7]
2 years ago
9

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 6% annual interest rate, what is its value as of 2018 (392 years later)?
Business
1 answer:
nalin [4]2 years ago
6 0

Answer:

$199,576,970,307.56

Explanation:

Given:

Price paid for the island = $24

Annual interest rate, r = 6%

Duration, n = 392 years

Now,

Future value is given as:

Future value = Present value × ( 1 + r )ⁿ

on substituting the respective values, we get

Future value = $24 × ( 1 + 0.06 )³⁹²

or

Future value = $24 × 8315707096.148

or

Future value = $199,576,970,307.56

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Empowerment of individual employees. Giving them more autonomy in the job and the capacity to work freely with the peers.

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Conducting internal development and training programs on a regular basis.

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Customer loyalty strategy

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The University of Nebraska found that when it lowered the price of season tickets for football from $350.00 to $300.00, ticket s
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Suppose the yield on a 10-year T-bond is currently 5.05% and that on a 10-year Treasury Inflation Protected Security (TIPS) is 1
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Answer:

c. 2.35%

Explanation:

10 year T bond Yield = 5.05 % (let it be rT10)

10 year TIPS yield = 1.8 % ( let it be r* )

MRP = 0.9%

Expected Inflation = rT10 - r* - MRP

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