1. Value the island (FV) using a simple interest of 20% [Hint: lumpsum investing]

A = $1,924.80 I = A - P = $1,900.80 Equation: A = P(1 + rt) Calculation: First, converting R percent to r a decimal r = R/100 = 20%/100 = 0.2 per year. Solving our equation: A = 24(1 + (0.2 396)) = 1924.8 A = $1,924.80 The total amount accrued, principal plus interest, from simple interest on a principal of $24.00 at a rate of 20% per year for 396 years is $1,924.80.

2. Value the island (FV) using a compound interest of 5% [Hint: Compound investing] Initial Balance 24$ Interest rate 5% Term 396 Years Results in The Final Balance is $5,904,478,021.97 The Total Compound Interest is $5,904,477,997.97

Write up your findings based on the calculations in #1 and #2 above in term of present and future valuations.