A bushel of turnips in Philadelphia in 1800 was $0.13. Today, a bushel of turnips cost $96.60. a. Assuming growth was constant per year, what was the year-to-year percentage increase in cost over this period? b. If the price of turnips continue to increase at this rate, what will be the cost of a bushel in 2050? For each of the following scenarios, solve for the indicated value (i.e., present value, interest rate, etc). a. Crosby is interesting in investing their $15,601.23 inheritance. What is the minimum semi-annual interest rate they need to earn to triple their money in 10 years? b. At the state fair, Stills comes across an booth that is selling an investment scheme which claims to be able to earn an annual rate of 7%. If he must invest for 5 years, how much does he have to commit today to earn $4,000 in interest? Hint: In general, the difference between FV and PV is interest earned. c. Nash really wants to buy a guitar. Her dad agrees to invest her allowance for her, at a rate of .5% a month. If the guitar costs $123.40 and she has $87 saved up, how long will it take her to be able to buy the instrument? d. You are investing with Young Investment & Co, and you want to double your $14,000 in savings. Assuming YI&C can get you an annual return of 6.5%, how long will it take you to reach your goals? Round to the nearest year. You and your roommate are saving up to go on an end-of-the-year trip to France, in 8 months. You both need $3,400 for air fare, meals, accommodations etc. You found an investment that will net you 2% a month. Your roommate decides to go with a savings account that returns 4.05% every two months. How much do you each need to invest today to reach your goal of $3,400? Who needs to invest more? 4. Chelsea is at a crossroads. Her brother wants her to invest her money with him, saying if she does, he can ensure a .94% return every 6 months. However, her sister claims she can get her interest of $20 in a year if she invests $1000 today. Which sibling should Chelsea go with? a. b. Use the present value approach to answer this question. Use the future value approach to check your answer.