In 2019, Gordon Brown was worth about \($85\) billion. Let’s see what Gordon Brown can do with his money in the following problems.

a. I’ll take Hong Kong? China sold Hong Kong to the British for \($28\) in 1842. Now 177 years later in 2019, Gordon Brown wants to buy Hong Kong from China. How much would Gordon have to pay for Hong Kong if China wants a 6 percent annual return on the original \($28\) purchase price?

b. How much would Gordon have to pay for Hong Kong if China wants an APR of 6 percent compounded monthly on the original \($28\) purchase price?

c. London, United Kingdom? Gordon Brown decides to pass on Hong Kong and instead plans to buy the city of London for \($100\) billion in 12 years. How much would Mr. Brown have to invest today at 11 percent compounded annually in order to purchase London in 12 years?

d. Now assume that Gordon Brown wants to invest only about half of his net worth today, \($42.5\) billion, in order to buy London for \($100\) billion in 12 years. What annual rate of return would he have to earn in order to complete his purchase in 12 years?

e. Brownville? Instead of buying and running large cities, Gordon Brown is now considering quitting the rigors of the business world and retiring to work on his golf game.
To fund his retirement, Gordon Brown would invest his \($85\) billion fortune in safe investments with an expected annual rate of return of 6 percent. Also, Mr. Brown wants to make 40 equal annual withdrawals from this retirement fund beginning a year from today. How much can Mr. Brown’s annual withdrawal be in this case?