in 1626 peter minuit purchase manhattan island for $24. Assuming an exponential rate of inflation of 6% per year, how much will manhattan be worth in 2013
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24(1.06)^(2013-1626) = $1.49*10^11
you may adjust it depending on whether the final year was an entire year.
To calculate the value of Manhattan Island in 2013, we need to take into account the exponential rate of inflation over the years. Here's how you can calculate it:
1. Start with the initial value of $24 in 1626.
2. Calculate the annual inflation rate of 6% by dividing it by 100: 6/100 = 0.06.
3. Calculate the number of years between 1626 and 2013: 2013 - 1626 = 387 years.
4. Use the formula for exponential growth: Final Value = Initial Value * (1 + Growth Rate)^Number of Years.
5. Apply the formula: Final Value = $24 * (1 + 0.06)^387.
Now we can calculate the final value of Manhattan Island in 2013:
Final Value = $24 * (1 + 0.06)^387
You can simplify this equation by using a calculator or a spreadsheet program. The final value of Manhattan Island in 2013 would be approximately $3,319,105,414.34 (about 3.3 billion dollars).