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Over the past few years, Microsoft founder Bill Gates' net worth has fluctuated between $ 2 0 billion and $ 1 3 0 billion. In
Over the past few years, Microsoft founder Bill Gates' net worth has fluctuated between $ billion and $ billion. In early it was about $ billionlong dashafter he reduced his stake in Microsoft from percent to around percent by moving billions into his charitable foundation. Let's see what Bill Gates can do with his money in the following problems.
aManhattans native tribe sold Manhattan Island to Peter Minuit for $ in Now, years later in Bill Gates wants to buy the island from the "current natives." How much would Bill have to pay for Manhattan if the "current natives" want a percent annual return on the original $ purchase price?
bBill Gates decides to pass on Manhattan and instead plans to buy the city of Seattle, Washington for $ billion in years. How much would Bill have to invest today at percent compounded annually in order to purchase Seattle in years
cNow assume Bill Gates only wants to invest half his net worth today, $billion in order to buy Seattle for $ billion in years. What annual rate of return would he have to earn in order to complete his purchase in years
dInstead of buying and running large cities, Bill Gates is considering quitting the rigors of the business world and retiring to work on his golf game. To fund his retirement, Bill would invest his $ billion fortune in safe investments with an expected annual rate of return of percent. He also wants to make equal annual withdrawals from this retirement fund beginning a year from today, running his retirement fund to $ at the end of years. How much can his annual withdrawal be in this case?
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