Albert Einstein is known for his distinctiveness in the field of Physics and perhaps the most well-known equation mass-energy equivalents E = mc2, but not for things financial. However, certain things financial were also attributed to him such as the hardest thing to understand in the world is income tax, and compound interest is the most powerful force in the universe. Also related to things financial was his alleged utterance that, compound interest is the eighth wonder of the world. he who understands it earns it he who doesnt pay it. Surely, of all the famous persons in the world, he would value compounding the most as the terminology has an exponential parameter similar to mc2. Based on these utterances above and accepting them as truly uttered by the above physicist laureate, there is a factual record in history in that, the indigenous people who resided on the island of Manhattan sold the island to the Dutch for $24.00 in 1624. Based upon the preceding statements of utterances and fact about the sale of Manhattan island, validate the statements by doing the following:

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

2. Value the island (FV) using a compound interest of 5% [Hint: Compound investing]

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