1. Samuel Smith invested in gold U.S. coins ten years ago, paying $250 for one-ounce gold "double eagle" coins. He could sell these coins for $1,300. today. What was his annual rate of return for this investment?
2. Florida Hospital wants to buy a roomy, well-equipped new ambulance in four years. The ambulance is expected to cost $150,000 at that time. If the hospital can find an investment yielding 12% over that four-year period, how much would the hospital have to invest now in order to accumulate $150,000 at the end of the four years?