Answer:
$44,068,955.96
Explanation:
The annual growth rate can be determined using compound annual growth rate formula below
CAGR=(Succeeding year amount/preceding year amount)^1/n-1
n is the interval of years between the two amount which is 2015-1904=111
CAGR=(1510000/130)^(1/111)-1=8.80%
The amount the winner would receive in the year 2055 can be computed using the future value formula stated below:
FV=PV*(1+r)^n
PV is the present amount which is $1,510,000
r is the 8.80%
n=2055-2015=40 years
FV=$1,510,000*(1+8.80%)^40=$44,068,955.96
