In 1944 a Hollywood publicist decided to dramatize the opening of the movie Knickerbocker Holiday by arranging

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In 1944 a Hollywood publicist decided to dramatize the opening of the movie Knickerbocker Holiday by arranging a stunt in which three bottles of whiskey originally thought to have been given to the Canarsie Indians for the island of Manhattan were to have been returned to the mayor of New York City plus 8% interest, compounded annually, in bottles. To his horror just before the gala event he discovered that the compound interest on the whiskey over a period of 320 year would be more than 100 million bottles. As the agent put it "The stunt just ain't worth it." Exactly how many bottles of whiskey would need to have been given to New York City"s mayor?
Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...
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Differential Equations and Linear Algebra

ISBN: 978-0131860612

2nd edition

Authors: Jerry Farlow, James E. Hall, Jean Marie McDill, Beverly H. West

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