Background for questions 1-4: Farmer Prospero is 50 (assume he just turned 50) and plans to retire at 65 (at the end of his 65th year). Prospero thinks his farm will be worth $5,000/acre by the time he retires. He views his farms earnings after that as contributing to his retirement but he also wants to keep it in the family. So, after he retires he will rent his farm to his daughter, Miranda, who has no plans to sell it. For all answers with multiple choice, choose the closest answers ignoring small rounding errors.

4. If Prospero wanted to sell his land to Miranda today in keeping with his motives above, what is the minimum price per acre he should charge her?