In 1904, the first Putting Green Championship was held. The winner's prize money was $160. In 2016, the winner's check was $1,177,000. (Do not round intermediate calculations.)

a.	What was the percentage increase per year in the winner's check over this period?

b.	If the winner's prize increases at the same rate, what will it be in 2049?

2.

Suppose you are going to receive $24,000 per year for 9 years. The appropriate interest rate is 8 percent.

a.	What is the present value of the payments if they are in the form of an ordinary annuity?

b.	What is the present value if the payments are an annuity due?

c.	Suppose you plan to invest the payments for 9 years, what is the future value if the payments are an ordinary annuity?

d.	Suppose you plan to invest the payments for 9 years, what is the future value if the payments are an annuity due?

3.

McCann Company has identified an investment project with the following cash flows.

Year	Cash Flow
1	$ 850
2	1,020
3	1,350
4	1,170

a.	If the discount rate is 11 percent, what is the present value of these cash flows?

b.	What is the present value at 17 percent?

c.	What is the present value at 29 percent?