In 1900, the first Green Jacket Golf Championship was held. The winner’s prize m
ID: 2791230 • Letter: I
Question
In 1900, the first Green Jacket Golf Championship was held. The winner’s prize money was $200. In 2015, the winner’s check was $1,540,000. What was the annual percentage increase in the winner’s check over this period? Annual percentage ___%If the winner’s prize increases at the same rate, what will it be in 2040? Prize money $____
In 1900, the first Green Jacket Golf Championship was held. The winner’s prize money was $200. In 2015, the winner’s check was $1,540,000. What was the annual percentage increase in the winner’s check over this period? Annual percentage ___%
If the winner’s prize increases at the same rate, what will it be in 2040? Prize money $____
Explanation / Answer
Number of years = 2015 - 1900 = 115
Annual percentage = (new vlaue / old value)1/n - 1
Annual percentage = (1540000 / 200)1/115 - 1
= 8.09%
Prize money in 2040 = 1540000 *(1+8.09%)25 = 10774819.63