In 1867, the United States bought the Alaska territory from Russia at the urging of Secretary of State William H. Seward. The Russian government needed cash and feared the territory might eventually be lost due to conflict or encroachment. The area of more than 580,000 square miles eventually became the state of Alaska in 1959. However Seward received a tremendous amount of criticism for championing and negotiating the $7.2 million purchase which was dubbed Sewards folly by numerous detractors. In hindsight it appears the natural resource-rich region was a good buy. But how much did we pay for it in todays dollars? ( Assume we are in 2012 today) 1. What is todays equivalent purchase price for Alaska assuming a 3% rate of inflation?