Question

Consider golfers who led the PGA in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation). Use the formula for converting nominal values into real values to convert the original U.S. dollar earnings of Nicklaus, Watson, and Woods ('00) to 2009 U.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar.
Year Golfer Nominal Winnings U.S. Dollars ($) U.S. CPI (1983 = 100) Winnings in 2009 U.S. Dollars ($)
1973 Jack Nicklaus 308,362 44.4
1980 Tom Watson 530,808 82.4
2000 Tiger Woods 9,188,321 172.2
2009 Tiger Woods 10,508,163 214.5 10,508,163
List the four golfers in order from lowest inflation-adjusted winnings to highest.

Answer 1

Answer:

4. Tom Watson

3. Jack Nicklaus  

2. Tiger Woods

1.  Tiger Woods

Note: See the attached file for the calculation.

Explanation:

Note: The table in the question is merged. It has been rearranged in the attached file, and the calculation is done in the file using the conversion formula.

The formula for converting nominal values into real values can be stated as follows:

Real value for each year = (Base Year CPI ÷ Nominal Year CPI) × Nominal value for the year

Using after converting the gofers' earnings to 2009 U.S. dollars. we have the following ranks and figures:

4. 1980, Tom Watson = $1,381,776  

3. 1973, Jack Nicklaus = 1,489,722  

2. 2009, Tiger Woods = 10,508,163

1.  2000, Tiger Woods = 11,445,382  

Download xlsx