SHOW SOLUTION** 1. In 1790 John Jacob bought approximately an acre of land on the east side of Manhattan Island for $58. Jacob, who was considered a shrewd investor, made many such purchases. How much would his descendants have in 2009, if instead buying the land had invested the $58 at 5% compound annual interest?

2. Lets say you invest $1,000 in a savings accounts that compound annually at 6% and want to withdraw your savings in 15 months, how much is it worth after 15 months?

3. Lets assume, you invest $1,000 today and you will receive $3,000 exactly 8 years. How much was the interest used, assuming compounded annually?

4. How long would it take for an investment of $1,000 to grow to $1,900, if we invested it at a compound annual interest rate of 10%?