2. According to an old myth, native Americans sold the island of Manhattan about 400 years ago for $24. If they had invested this amount at an interest rate of 10% per year and average inflation rate of 2.5%, how much would they have today in real values?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
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Problem 10SCQ: A fixed-rate mortgage has the same interest rate over the life of the loan, whether the mortgage is...
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2. According to an old myth, native Americans sold the island of Manhattan about 400 years
ago for $24. If they had invested this amount at an interest rate of 10% per year and
average inflation rate of 2.5%, how much would they have today in real values?
Transcribed Image Text:2. According to an old myth, native Americans sold the island of Manhattan about 400 years ago for $24. If they had invested this amount at an interest rate of 10% per year and average inflation rate of 2.5%, how much would they have today in real values?
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