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The prize money for the winner of the Masters Golf Championship increased from $1.26 Million when Tiger Woods won in April 2005 to $1.80 Million
The prize money for the winner of the Masters Golf Championship increased from $1.26 Million when Tiger Woods won in April 2005 to $1.80 Million when Danny Willett won in April 2016. During the same time period, the CPI value increased from 194.6 in April 2005 to 239.3 in April 2016. (a) Calculate the average annual rate of increase in the prize money over that period. (b) Calculate the corresponding average annual general inflation rate over the same time period. (c) Hence, calculate the "real" annual rate of increase in the prize money taking into account the general inflation rate over the time period. (d) Calculate Danny Willett's 2016 prize money in 2005" dollars. (a) The average annual rate of increase in the prize money was % (Round to two decimal places) (b) The average annual general inflation rate was % (Round to two decimal places) (c) The "real" annual rate of increase in prize money was % (Round to two decimal places) (d) Danny Willett's 2016 prize money in "2005" dollars is $ Million (Round to three decimal places)
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