In 1985, the first U.S. Open Golf Championship was held. The winner's prize money was $300. In 2020, the winner's check was $2 million. What was the percentage increase per year in the winner's check over this period? If the rate stays the same, what will be the check amount in 2040?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 10RE: If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32...
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In 1985, the first U.S. Open Golf Championship was held. The winner's prize money was
$300. In 2020, the winner's check was $2 million. What was the percentage increase per year
in the winner's check over this period? If the rate stays the same, what will be the check
amount
in 2040?
Transcribed Image Text:In 1985, the first U.S. Open Golf Championship was held. The winner's prize money was $300. In 2020, the winner's check was $2 million. What was the percentage increase per year in the winner's check over this period? If the rate stays the same, what will be the check amount in 2040?
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