July 2007
Problem of the Month
Manhattan & the Indians
David Letterman mentioned the following on his show in February, 2007:
"In 1626, we bought Manhattan from the Indians for $24.
Today, it would be worth 730 trillion dollars."
At what interest rate would you have to invest $24 in 1626 so that it would be worth $730 trillion
in 2007?
Assume that the rate stays constant and that it is compounded annually.
Give your answer as a percent correct to two decimal places (e.g., like 3.74%).
Solution to the Problem:
The answer is 8.49%.
Many thanks to Evelyne Stalzer for correcting my spelling of Manhattan!
Correctly solved by:
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1. David and Judy Dixon
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Bennettsville, South Carolina
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| 2. Richard K. Johnson
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La Jolla, California
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| 3. K. Sengupta
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Calcutta, INDIA
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| 4. Evelyne Stalzer
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Montville, New Jersey
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| 5. Magdy Essafty
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Alexandria, Egypt
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| 6. Tristan Collins
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Virginia Tech
Blacksburg, Virginia
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| 7. Tom Robb
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John Handley High School
Winchester, Virginia
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