iN 1626 Manhattan island was sold for $24. If that money had been invested at 8% per annum compounded annuallly what would it have amounted to today?
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jeew-m
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For the compounding interest;
`FV = PV(1+i)^n`
FV = Future Value
PV = Present value
i = effective interest rate per annum
n = number of years
` PV = 24`
`i = 8% = 0.08`
`n = (2013-1626) = 387`
`FV = 24(1+0.08)^387`
`FV = 2.066xx10^12`
So the amount today is `$2.066xx10^12` .
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