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Scholarly accounts nar sum up of a sale act in the midst of the early 17th century Dutch settlers in Manhattan (Island Manhattes thus ) and the Indians occupying the island . In the bind written by Francis (n .d the sale transaction took place in August 10 , 1626 (381 old age ago , and numerateed to 60 guilders (E .B . O Callaghan , ed . 1856 Documents Relative to the Colonial register of the State of New York . Albany . Vol . 1 ,. 37 as reported in Francis , n .d . The payment was actually in beads and trinkets but was assumed to amount to 60 guilders . An article in The Straight Dope and a presentation of banner (2001 ) estimated 60 guilders to be around 24 based on the time s currency exchange rateThe question is to compute how practically that property is worth today had that amount been deposited in a Savings and Loan organization , and earned 5 rate compounded quarterlyCompound interest formula : M(1 i ) ^ nwhere M is the net amount including the principal (unknown ,is the principal amount 24 , i is the rate of interest per year (5 , and n is the number of years invested (381 . Since the interest is to be compounded quarterly , i go away be changed to 1 .25 (per quarter , and n will be changed to 1 ,524 (quarters in 381 years . HenceM(1 i ) ^ n 24 (1 1 .25 ) ^ 1 ,524 4 ,001 ,656 ,783 .35 ( the present amount of 24 in 1626 given the above conditionsIf the same amount of money will be deposited continuously in the same amount of time (i .e , present 381 years or 1 ,524 more(prenominal) quarters - this is the year 2388 , the new given would beM(1 i ) ^ n 24 (1 1 .25 ) ^ 3 ,048 667 ,219 ,042 ,156 ,319 ,000 .

00 ( the year 2388 amount of 24 in 1626 given the aboveReferencesBanner , S . 2001 . Manhattan for 24 : American Indian Land Sales 1607-1763 ( presentation at the John M . Olin Center for Law Economics , The University of Michigan . HYPERLINK hypertext transfer protocol / web .law .umich .edu /CentersAndPrograms /olin /s /Fall 202001 /ban ner .PDF http /www .law .umich .edu /CentersAndPrograms /olin /s /Fall 202001 /bann er .PDF . Date accessed : kinsfolk 24 , 2007Francis ,, n .d . Beads and Manhattan . HYPERLINK http /www .hartford-hwp .com /archives /41 /415 .html http /www .hartford-hwp .com /archives /41 /415 .html . Date accessed September 24 , 2007Personal Finance Advice , 2006 . Compound Interest , Manhattan the Indians . HYPERLINK http /www .pfadvice .com /2006 /01 /15 /compound-interest-manhattan-the-indi ans http /www .pfadvice .com /2006 /01 /15 /compound-interest-manhattan-the-india ns . Date accessed : September 24 , 2007PAGEPAGE 1...If you want to get a full essay, enjoin it on our website: Orderessay

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