In 1895, the first U.S. Open Golf Championship was held. The winner’s prize mone
ID: 2811910 • Letter: I
Question
In 1895, the first U.S. Open Golf Championship was held. The winner’s prize money was $150. In 2016, the winner’s check was $1,800,000.
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.)
If the winner’s prize increases at the same rate, what will it be in 2040? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Time period in years = 2016 - 1895 121.00 A = P(1+r/100)^n 1,800,000 = 150 (1+r/100)^121 12,000 = (1+r/100)^121 (12,000)^(1/121) = (1+r/100) 1.0807 = 1 +r/100 .0807 = r/100 r = 8.07% percentage increase per year = 8.07% Time period till 2040= 2040 - 2016 24 Years Prize in 2040 = (1,800,000)(1+8.07/100)^24 Prize in 2040 = 1,800,000 *(1.0807)^24 Prize in 2040 = $11,593,008.13