Problem 4-13 Calculating Interest Rates and Future Values [LO 1, 3]

In 1898, the first U.S. Open Golf Championship was held. The winners prize money was $180. In 2012, the winners check was $1,380,000.

Requirement 1:

What was the annual percentage increase in the winners 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 =8.16%

Requirement 2:

If the winners prize increases at the same rate, what will it be in 2042? (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= ?