Ann Arbor was founded in 1824, named for wives of the village's founders and the stands of Bur Oak trees. The University of Michigan moved from Detroit to Ann Arbor in 1837, and the city grew at a rapid rate in the early to mid-20th century. During the 1960s and 1970s, the city gained a reputation as a center for left-wing politics. Ann Arbor became a focal point for political activism and served as a hub for the civil-rights movement and anti-Vietnam War movement, as well as various student movements. 

Ann Arbor was founded in 1824 by land speculators John Allen and Elisha Walker Rumsey. On 25 May 1824, the town plat was registered with Wayne County as "Annarbour;" this represents the earliest known use of the town's name. Allen and Rumsey decided to name it for their wives, both named Ann, and for the stands of Bur Oak in the 640 acres (260 ha) of land they purchased for $800 from the federal government at $1.25 per acre. The local Ojibwa named the settlement kaw-goosh-kaw-nick, after the sound of Allen's sawmill.
How much did the town cost?
they purchased for $800 from the federal government