There is a golf tournament in the US that started in 1895. That first year the winner
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Question:
- There is a golf tournament in the US that started in 1895. That first year the winner received $150. In 2010, the winner received $1,350,000.
- What was the percentage increase per year, from 1895 to 2010, over that period of 115 years?
- If the winners prize continues to increase at the same rate, what will it be in the year 2040, or 30 years from now?
- First Simple Bank pays 6% simple interest on its account balances. Second Compound Bank pays 6% interest compounded annually. If you made a $57,000 deposit in each bank, how much more money would you earn from your Second Compound Bank account at the end of 10 years?
- You want to buy a Ferrari that only costs $195,000. Youve already saved $45,000 and plan to invest it today, in an account that pays 5.3% annual interest. If you dont touch this money, nor add any additional funds into the account, how long will it be before you can buy your Ferrari?
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