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In the early 1980s, planners were examining alter- nate sites for a new London airport. The economic analysis included the value of structures that would

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In the early 1980s, planners were examining alter- nate sites for a new London airport. The economic analysis included the value of structures that would need to be removed from various airport sites. At one potential site, the twelfth-century Norman church of St. Michaels, in the village of Stewk- ley, would have had to be demolished. The planners used the value of the fire insurance policy on the church a few thousand pounds sterlingas the church s value. An outraged antiquarian wrote to the London Times that an equally plausible computation would be to assume that the original cost of the church (estimated at 100 pounds sterling) be increased at the rate of 10% per year fr 800 years. Based on his proposal, what would be the future worth of SL Michaels? (Note: There was great public objec- tion to leanng down the church, and it was spared.)

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