The Incas had never seen horses before the arrival of the Spaniards. So they were naturally terrified to see giant armored calvary horses mounted by armored soldiers swinging swords and lances. It took two hours for them to kill seven thousand Inca warriors and kidnap the Inca ruler of Atahualpa.
Atahualpa paid the ransom with 2,600 pounds of gold and 5,200 pounds of silver. However, Pizzaro had no intention of letting him go. After executing Atahualpa, Pizzaro turned his sights on Cuzco, the Inca capital, where he seized an equal amount of gold and four or five times the amount of silver. Twenty percent of the gold and silver profit was paid to the government of Spain. This was the Spanish governments normal fee. It was also the same amount that Cortez paid when he conquered Tenochtitlan.