Question

In 1895, the first Putting Green Championship was held. The winner’s prize money was $170. In 2016, the winner’s check was $1,390,000.a.What was the percentage increase per year in the winner’s check over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)b. If the winner’s prize increases at the same rate, what will it be in 2046? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 1

Answer:

a. The percentage increase per year in the winner’s check over this period was 7,73%

b. The winners prize at 2046 will be $12,975,215,98

Explanation:

a.

\sqrt[(2016-1895)]{(1390000/170)}

\sqrt[121]{8176,47}

0.0772965

b.

FC=IC*(1+0,0773)^{30}

FC=1,390,000*(1+0,0773)^{30}