In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $150. In 2019, the winner's check was $2.25 million. 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.) Interest rate If the winner's prize increases at the same rate, what will it be in 2044? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89) Future value
In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $150. In 2019, the winner's check was $2.25 million. 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.) Interest rate If the winner's prize increases at the same rate, what will it be in 2044? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89) Future value
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![**Title: Understanding Prize Money Growth in the U.S. Open Golf Championship**
**Introduction:**
In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $150. In 2019, the winner's check was $2.25 million. This dramatic increase in prize money over the years presents a fascinating case study for understanding percentage increases and future value estimations in financial contexts.
**Percentage Increase Calculation:**
*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%.
[Interactive Input Field]
- Interest rate: __________ %
**Future Value Estimation:**
If the winner's prize increases at the same rate, what will it be in 2044?
- **Do not round intermediate calculations and enter your answer in dollars (not millions), rounded to 2 decimal places**, e.g., 1,234,567.89.
[Interactive Input Field]
- Future value: __________
**Explanation of Graphs or Diagrams:**
1. **Interest Rate Calculation Field:**
- This input field allows users to enter the calculated annual percentage increase rate. This rate represents the geometric growth rate of the prize money from 1895 to 2019.
2. **Future Value Calculation Field:**
- This input field allows users to predict the prize money in 2044, assuming it continues to grow at the same calculated rate. By inputting the annual growth rate, users can see the compounded result over the next 25 years.
**Conclusion:**
This exercise provides a practical application of percentage increases and future value calculations, illustrating the growth of prize money in sports over time. By understanding these concepts, students can gain insights into financial growth and economic trends.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0505985e-243e-4b9e-b7a6-bbe3450b2962%2F025353e2-b4bd-45ac-9b5f-70a5e1382d26%2F333fhum_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Title: Understanding Prize Money Growth in the U.S. Open Golf Championship**
**Introduction:**
In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $150. In 2019, the winner's check was $2.25 million. This dramatic increase in prize money over the years presents a fascinating case study for understanding percentage increases and future value estimations in financial contexts.
**Percentage Increase Calculation:**
*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%.
[Interactive Input Field]
- Interest rate: __________ %
**Future Value Estimation:**
If the winner's prize increases at the same rate, what will it be in 2044?
- **Do not round intermediate calculations and enter your answer in dollars (not millions), rounded to 2 decimal places**, e.g., 1,234,567.89.
[Interactive Input Field]
- Future value: __________
**Explanation of Graphs or Diagrams:**
1. **Interest Rate Calculation Field:**
- This input field allows users to enter the calculated annual percentage increase rate. This rate represents the geometric growth rate of the prize money from 1895 to 2019.
2. **Future Value Calculation Field:**
- This input field allows users to predict the prize money in 2044, assuming it continues to grow at the same calculated rate. By inputting the annual growth rate, users can see the compounded result over the next 25 years.
**Conclusion:**
This exercise provides a practical application of percentage increases and future value calculations, illustrating the growth of prize money in sports over time. By understanding these concepts, students can gain insights into financial growth and economic trends.
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