Isaac Newton Was Able to Estimate a Value for G

question 9

Essay

Isaac Newton was able to estimate a value for G, the universal gravitational constant, from the following data: the radius of the Earth is about 6 400 km, the average density of rocks is about 5.50 g/cm³, and g = 9.80 m/s² near the surface of the Earth. What value did Newton obtain for G?

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows or to discount future obligations.

Maturity

The predetermined date on which a financial instrument, loan, or security reaches its final payment, at which point the principal amount must be repaid.

Zero-Coupon Bond

A debt security that doesn't pay periodic interest, sold at a discount from its face value, and repays the face value at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both the interest payments and the capital gain or loss.