The magic of compound interest rate

[yetanotherquant]

Manhattan was bought for 60 Gulden in 1626, which is often considered to be a one of unfairest deals in the history. However, had Native Americans invested this money under 6% p.a., they could have bought the Manhattan back with all current real estate four times!

Numeracy for Traders - Lesson 2 - Exponentiation, polynomials, logarithms and the power of compound returns