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OT: A bit of fun: In 1626, Manhattan was supposedly bought for equivalent of $24 (in beads). If invested at 5% Annual interest, compounded monthly, it would no
by SeanDav 9y ago
OT: A bit of fun:
In 1626, Manhattan was supposedly bought for equivalent of $24 (in beads). If invested at 5% Annual interest, compounded monthly, it would now be worth around $7 billion (assuming my online calculator is working correctly).
So our man should bequeath his $13 + interest and ensure the terms of the will state the the capital + interest is maintained for at least 400 years and someone will be able to inherit a nice tidy sum!
- morganvachon 9y agoFour hundred years from now, if humans even still exist and we're still under a scarcity based economy, those billions of dollars will likely not be worth much.
- SketchySeaBeast 9y agoShould make a nice nest to put your bottlecaps in.
- delinka 9y agoNot to mention the number of heirs one might expect to divide the inheritance amongst. Might just end up a pittance per person after all.
- spqr0a1 9y agoExpanding on this tangent, it was closer to $300 in goods (as well as indefinite food and lodging for anyone in the tribe and a tacit assumption of military aid). Assuming just the tangible assets were invested in the most obvious way at the time, (dutch east india company being the most notable publicly traded company.) the dividend rate averaged 18% until 1796. If you compound with 18% for the first 170 years then 5% after, it would be more than enough to buy back Manhattan at it's current property value!