6) It is widely reported on the Internet that the island of Manhattan was purchased in...

 

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6) It is widely reported on the Internet that the island of Manhattan was purchased in the 17th century for a price of 60 Dutch guilders roughly equal to $24 (US). Suppose that instead of purchasing Manhattan, the Dutch colonists had invested their $24 (US) in Europe at an average rate of 4.5% per year. If the $24 USD had been invested for exactly 385 years earning simple interest (i.e., without compounding), approximately how much would their investment now be worth? a) $440 b) $549,519,444 c) $9,240 d) $24,736,768 e) None of the above 6) It is widely reported on the Internet that the island of Manhattan was purchased in the 17th century for a price of 60 Dutch guilders roughly equal to $24 (US). Suppose that instead of purchasing Manhattan, the Dutch colonists had invested their $24 (US) in Europe at an average rate of 4.5% per year. If the $24 USD had been invested for exactly 385 years earning simple interest (i.e., without compounding), approximately how much would their investment now be worth? a) $440 b) $549,519,444 c) $9,240 d) $24,736,768 e) None of the above

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Answer simple interest PRT1... View the full answer