Problema Solution

in 1626 peter minuit purchase manhattan island for $24. Assuming an exponential rate of inflation of 8% per year, how much will manhattan be worth in 2008?

Answer provided by our tutors

A = 24(1 + 0.08)^(2008-1626)


by calculating we find


A = $140,632,545,501,733.08 or about 140.6 trillions dollars.