Elon Musk has a private wealth of about $204 billion (data: Bloomberg, 31/10/2022). Lets see what Elon Musk can do with his money in the following problems.

a. Ill take Manhattan? Manhattans native tribe sold Manhattan Island to Peter Minuit for $24 in 1626. Now, 396 years later in 2022, Elon Musk wants to buy the island from the current natives. How much would Elon have to pay for Manhattan if the current natives want a 6% annual return on the original $24 purchase price? Could he afford it? (5 points)

b. How much would Elon have to pay for Manhattan if the current natives want a 6% return compounded monthly on the original $24 purchase price? (5 points)