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Comprehensive problem) Over the past few years, Microsof founder Bill Gates' net worth has fluctuated between $20 billion and $130 billion. In early 2006, it

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Comprehensive problem) Over the past few years, Microsof founder Bill Gates' net worth has fluctuated between $20 billion and $130 billion. In early 2006, it was about $26 billion--after he reduced his stake in Microsoft from 21 percent to around 14 percent by moving bilions into his charitable foundation. Let's see what Bill Gates can do with his money in the following problema. Manhattan's native tribe nold Manhattan Island to Peter Minuit for $24 In 1626. Now. 387 years later in 2013. Bel Gates wants to buy the island from the current natives. How much would Bill have to pay for Manhattan if the current notives want a 4 percent annual return on the original $24 purchase price? b. Bill Gates decides to pass on Manhattan and instead plans to buy the city of Seattle, Washington, for $60 billion in 10 years. How much would Bill have to invest today at 8 percent compounded annually in order to purchase Seattle in 10 years? c. Now assume Bill Gates only wants to invest halt his net worth today, 513 billion in order to buy Seattle for $60 billion in 10 years. What annual rate of return would he have to eam in order to complete his purchase in 10 years? d. Instead of buying and running farge cities, Bill Gates is considering quitting the rigors of the business world and retiring to work on his golf game. To fund his retirement Bit would invest is $20 bilion fortune in safe investments with an expected annual rate of return of 6 percent. He also wants to make 40 equal annual withdrawals from this retirement fund beginning a year from today, running his retirement fund to $0 at the end of 40 years. How much can his annual withdrawal be in this case? The amount at would have to pay for Manhattan If the current native wanted a 4 percent annual return on the original $24 purchase price after 307 years is billon (Round to two decimal place)

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