1. The purchase price of an acre of land in the Louisiana purchase in 1803 was about 6 cents. Suppose the value of this property grew at an annual rate of 4.5% compounded annually. What would an acre of land be worth in 2010? $ _______

2. Suppose that the purchase price of Manhattan in 1626 was recently re-estimated by historians to be $43. Suppose that this money was invested at an annual rate of 5.3% compounded quarterly. What would this investment be worth in 2013? (Round your answer to the nearest billion.) $ _____ billion

3. Find the future values of the ordinary annuities at the given annual rate r compounded as indicated. The payments are made to coincide with the periods of compounding. (Round your answer to the nearest cent.)

PMT = $240, r = 7.4%, compounded weekly for 10 years.

 

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1 To calculate the value of an acre of land in 2010 we need to determine the number of compounding p... View the full answer