Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Having some trouble with this problem. I have the annual percentage right, but the prize money seems to be wrong. I believe I am doing

image text in transcribed

Having some trouble with this problem. I have the annual percentage right, but the prize money seems to be wrong. I believe I am doing it correctly. Financial calculator: 28N, 8.23 I/Y, PV 1,400,000, 0 PMT then i get FV= 12,819,245.72 still says it is wrong.

5 2.50 points Problem 4-13 Calculating Interest Rates and Future Values [LO 1, 3] In 1900, the first U.S. Open Golf Championship was held. The winner's prize money was $200. In 2012, the winner's check was $1,400,000. Requirement 1: What was the annual percentage increase in the winner's check over this period? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Annual percentage 8.23% Requirement 2: If the winner's prize increases at the same rate, what will it be in 2040? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Prize money $ 12,819,245.7

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Public Health And Not For Profit Organizations

Authors: Steven A. Finkler

4th International Edition

0132912813, 9780132912815

More Books

Students also viewed these Finance questions