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P5-13 Calculating Interest Rates and Future Values [LO1, 3] In 1895, the first a sporting event was held. The winner's prize money was $180. In 2007 the winner's check was $1,180,000. (Do not round your 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 2040?

You're trying to save to buy a new $210,000 Ferrari. You have $42,000 today that can invested at your bank. The bank pays 6.0 percent annual interest on its accounts. H long will it be before you have enough to buy the car?

27.37 years

27.62 years

25.62 years

27.87 years

28.12 years

Tai Credit Corp. wants to earn an effective annual return on its consumer loans of 14. percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers? (Use 365 days a year. Do no round intermediate calculations. Enter your answer as a percent rounded to decimal places, e.g., 32.16.)