In 1906, the first U.S. Open Golf Championship was held. The winner\'s prize mon
ID: 2744702 • Letter: I
Question
In 1906, the first U.S. Open Golf Championship was held. The winner's prize money was $280. In 2012, the winner's check was $1, 500,000 What was the annual percentage increase in the winner's check over this period? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places e.g., 32.16).) Annual percentage % if the winner's prize increases at the same rate what will it be in 2055? (Enter your answer in dollars, not millions of dollars (e.g., 32.16).) Prize money $Explanation / Answer
Formula Used:
1. For calculating % increase - =(1,500,000/280)^(1/(2012-1906))-1 = 8.44%
2. For calculating prize in 2055 - =(1,500,000)x(1+8.44%)^(2055-2012) = $48,839,557
Year Prize 1906 $280 2012 $1,500,000 2055 $ 48,839,557 Difference 106 8.44%