In 1867, the US Secretary of State purchased Alaska from Russia for $7,200,000 (about two cents per acre).
At the time, the deal was considered a folly (i.e. crazy) but from our perspective, today, did the US Secretary of State get a bargain?
What would it cost in 2007 if Alaska was in exactly the same condition as it was 140 years before and the prevailing interest rate over the 140 years was 4%?
Please show and explain your calculations
Please comment on the US President's, Donald J Trump, offer to purchase Greenland?

What should be the price offered? What would be the value of that deal in 40 years?

 

 

Answer rating: 100% (QA)

Yes the US secretary of state indeed did get a bargain If we consider all the value of the natural r... View the full answer