1. David Ricardo: Turned 800 starting capital in 1794 at age 22 into a retirement at 42 into of 500,000 (About $50M in todays $). What was his CAGR?

2. Warren Buffett has compounded his wealth in BRK shares at a 21.6%. If Buffett started with 800 in 1794 and compounded at 21.6%, how much would he have been worth 20 years later?

3. Discounting: Using a 2% discount rate, what is the present value of:

a. $50 to be received 1, 2, 3, 4, 5 years from now

i. The Present Value is the correct price to pay for the bond. So, what happens to the price of a bond when interest rates (or discount rates) drop?

j. Now use the 5 keys to figure out what the correct price of the bond would be if interest (or discount) rates rise to 7%

k. So what happens to the price of a bond when interest/discount rates rise?