1.In 1939, two people teamed up to manufacture and market electronic test equipment. By 1957, the initial capital investment from themselves and a few friends that amounted to only $80,805.12 in 1939 had increased in value to an equivalent of $ 11million. After this, the company skyrocketed to become a world leader in electronic equipment, computers and a wide range of other products. If the net cash flow averaged $150,000 per year from 1957 to 2017 (60 years) at the same rate, these two individuals would be quite wealthy.

2.Assume that when your great-grandmother was 25 years old, she received an engagement ring from her husband-to-be. He paid $50 for the ring containing a single, high quality diamond. When she passes away at ages of 90, the ring went to your grandmother, who kept it for 60 year and then gave it to your mother. After 30 years of keeping the ring in safe place, she gave it to you on your 24^th birthday. Today is your 48^th birthday and you have just discovered the ring in desk drawer, forgotten for all these years. If this high-Grade diamond has been now appraised as a collector's grade stone, which has appreciated in value at an average rate 4% per year, every year, since it was first purchased, you wonder what the ring might be valued at today.

what would be the answer ?