Question
Jeff Bezos has a private wealth of about $127 billion ( data: Bloomberg, 31/10/2022) . Lets see what Jeff Bezos can do with his money
Jeff Bezos has a private wealth of about $127 billion (data: Bloomberg, 31/10/2022). Lets see what Jeff Bezos 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, Jeff Bezos wants to buy the island from the current natives. How much would Bezos have to pay for Manhattan if the current natives want a 5% annual return on the original $24 purchase price? Could he afford it? (5 points)
b. How much would Jeff have to pay for Manhattan if the current natives want a 5% return compounded monthly on the original $24 purchase price? (5 points)
c. Austria? Jeff Bezos enjoys skiing so he plans to purchase the whole country of Austria at the price of the current value of GDP of $404 billion (data: World Bank, 2021). How much would Mr. Bezos have to invest today at 10 percent compounded annually in order to purchase Austria in 10 years at this price? (5 points)
d. If Bezos decides to set up a foundation with funding of $1 billion that he will contribute to the saving account at the end of each year during the next 20 years and the bank offers him a return of 6%, how much will be generated on this saving account
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