Some estimate the (2012) current value of Manhattan to be about $800,000,000,000. Assuming this to be true, what would have been a fair price for Peter Minuit to pay for Manhattan in 1626, assuming an interest rate of 5% compounded annually
mrambabu1600:
PLEASE ANSWER QUICKLYYYYYYYY
Answers
Answered by
1
Price for Peter in 1626 = P
Interest = r = 5%
Number of years = 2012 - 1626 = 386 years
number of times interest is compounded = n = 386
Accumulated Amount in 2012
[tex]= P ( 1 + \frac{r}{100} )^n = P (1+5/100)^{386} = P \ 1.05^{386} = 151032162.59 P \\ \\ So\ Cost\ of Manhattan\ in\ 2012\ = \$ 800,000,000,000 = 151032162.59 P \\ \\ P = \frac{\$ 800,000,000,000}{151032162.59} = \$ 5296.89 \\ \\ [/tex]
Interest = r = 5%
Number of years = 2012 - 1626 = 386 years
number of times interest is compounded = n = 386
Accumulated Amount in 2012
[tex]= P ( 1 + \frac{r}{100} )^n = P (1+5/100)^{386} = P \ 1.05^{386} = 151032162.59 P \\ \\ So\ Cost\ of Manhattan\ in\ 2012\ = \$ 800,000,000,000 = 151032162.59 P \\ \\ P = \frac{\$ 800,000,000,000}{151032162.59} = \$ 5296.89 \\ \\ [/tex]
refresh the browser window, reload - if script is shown and not equations. thanks
THANKS SIR
Pls answer 39266
thanx & u r welcom
Similar questions