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.)

Question

Gia Robbins

Business

17 March, 15:52

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.)

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Answers (1)

Know the Answer?

Craig Huber · Answer 1

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}