“If the Indians Hadn’t Spent the $24”


In 1626 Peter Minuit, first governor of New Netherland, purchased Manhattan Island from the Indians for about $24. … Assume for simplicity a uniform rate of 7% from 1626 to the present, and suppose that the Indians had put their $24 at interest at that rate … and had added the interest to the principal yearly. What would be the amount now, after 280 years? 24 × (1.07)280 = more than 4,042,000,000. [The current value of Manhattan is] a little more than $4,898,400,000. … The Indians could have bought back most of the property now, with improvements; from which one might point the moral of saving money and putting it at interest!

— W.F. White, A Scrap-Book of Elementary Mathematics, 1908