Peter Minuit bought Manhattan island from the Lenape tribe in 1626 for $24 worth of beads and trinkets. The 2014 estimate of the value of the land on this island was $1.4 trillion (1 trillion = 1012). What rate of return would the tribe have received if they had retained title to the island rather than selling it for $24? The rate of return is close to:

Select one:

a. 5.6%

b. 4.3%

c. 7.8%

d. 6.4%