In 1907, the first green jacket golf championship was held. the winner's prize money was $270. in 2015, the winner's check was $1,630,000. what was the annual percentage increase 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.)

Question

Business

Dane Hansen

26 May, 03:27

In 1907, the first green jacket golf championship was held. the winner's prize money was $270. in 2015, the winner's check was $1,630,000. what was the annual percentage increase 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.)

+5

Answers (1)

Know the Answer?

Wilkerson · Answer 1

The answer is 8.80%.

Explanation:

To answer this question we should use either the formula of present value (PV) or Future value (FV). Either of them will give the answer because they are inverse to each other.

FV = PV (1 + r) ^t

Solving r, we get

r = (FV/FV) ^ (1-t) - 1

r = ($1,630,000 / $270) ^ (1-102) - 1

r = 0.0891 or 8.91%