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OverLord2011 [107]
4 years ago
6

In 1895, the first u.s. open golf championship was held. the winner's prize money was $150. in 2010, the winner's check was $1,3

50,000. what was the percentage increase per year in the winner's check over this period? (
Business
1 answer:
Westkost [7]4 years ago
8 0

We will examine the annual growth rate of the following question.

Formula for calculating the annual growth rate is Growth Percentage Over One year =[ (F÷S) ¹/y - 1] ₓ 100

where F= final value

           S= start value

           y= Number of years.

(1,350000÷150)        y= 2010-1895=115

∴ [(1,350,000÷150) ¹/₁₁₅ - 1] × 100

  = (9000¹/₁₁₅ - 1) ₓ 100

  = (1.082393 - 1) ₓ 100

  = 8.24%

Over the course of 115 years the winners prize money grew from $150.00 to $1,350,000.00, its annual growth rate = 8.24%

Please Note, raising a value a to the ¹/<em>b</em> exponent is equivalent to taking the <em>b</em>th root of a. You will likely need a calculator with an " \sqrt[n]{x}<em>"  </em>button, or a good online calculator.

Couldn't find the basic symbols, had to improvise.


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