Question

In 1896, the first Green Jacket Golf Championship was held. The winner’s prize money was $160. In 2015, the winner’s check was $1,610,000.
What was the annual percentage increase in the winner’s check over this period? Annual percentage %

If the winner’s prize increases at the same rate, what will it be in 2044?Prize money $

Answer 1

Answer:

r = 0.080528395 = 8.05%

Winner's Prize at 2044:  $ 15,215,114.02

Explanation:

$Principal \: (1+ r)^{time} = Amount$

Principal 160

Amount 1,610,000

time: 2015 - 1896 = 119

$160 \: (1+ r)^{119} = 1,610,000\\ r = \sqrt[119]{1,610,000 / 160} -1$

r = 0.080528395

If the same rate for the winner's prize is being keep by 2044 the winner will get:

$Principal \: (1+ r)^{time} = Amount$

Principal 1,610,000.00

time 29.00 (2044 - 2015)

rate 0.08053

$1610000 \: (1+ 0.0805283946683808)^{29} = Amount$

Amount 15,215,114.02