1. Calculate the annual compound growth rate of the house price since the house was sold to Mark and Ann Kington (since 2000) until the house was listed for sale at a reduced price in 2019. (Round the number of years to the whole number).

1. Calculate the annual compound growth rate of the house price since the house was sold to Mark and Ann Kington (since 2000) until the house was listed for sale at a reduced price in 2019. (Round the number of years to the whole number). Please show your work.

2. Assume that the growth rate you calculated in question #1 remains the same for the next 30 years. Calculate the price of the house in 30 years after it was listed at a reduced price in 2019. Please show your work.

3. Assume that the growth rate you calculated in question #1 remains the same since Robert E. Lee’s father Henry rented the home in 1812. Calculate the price of the house in 1812. (Round the number of years to the whole number). Please show your work.

4. Assume the growth rate that you calculated in #1 prevailed since 1795. Calculate the price of the house in 1795. (TIP: To get the answer correctly you need to use the price of the house in your calculations in dollars with all zeros). Please show your work.

5. You were using the time value of money concept to answer question #4. Think about the time line for that problem. What is the time point 0 in that problem? Please explain your answer.

6. In April 2018, the listed price of the house was $8.5 million. Calculate the annual compound growth rate of the house price since the house was sold to Mark and Ann Kington (since 2000) until the house was listed for sale in 2018. Compare with your answer to the question #1.

7. Using the growth rate from question #6, calculate the price of the house in 1812. (Round the number of years to the whole number). Please show your work. Compare with your answer to the question #3.