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Did the us secretary of state get a bargain

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Reference no: EM132960800

In 1867, the US Secretary of State purchased Alaska from Russia for $7,200,000 (about two cents per acre).

Problem 1: At the time, the deal was considered a folly (i.e. crazy) but from our perspective today, did the US Secretary of State get a bargain?

Problem 2: What would it cost in 2007 if Alaska was in exactly the same condition as it was 140 years before and the prevailing interest rate over the 140 years was 4%.

Reference no: EM132960800

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