Question

The winner of the first annual Tom Morris Golf Invitational won $155 in the competition which...

The winner of the first annual Tom Morris Golf Invitational won $155 in the competition which was held in 1909. In 2015, the winner received $1,560,000. If the winner's purse continues to increase at the same interest rate, how much will the winner receive in 2043? A. $17,801,890.25 B. $16,432,514.07 C. $ 16,183,536.59 D. $20,027,126.53 E. $14,241,512.20

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Winning in 1909 = $155
Winning in 2015 = $1,560,000

Interest Rate = (Winning in 2015 / Winning in 1909)^(1 / Period) - 1
Interest Rate = ($1,560,000 / $155)^(1/106) - 1
Interest Rate = 10,064.51613^(1/106) - 1
Interest Rate = 1.090843 - 1
Interest Rate = 0.090843 or 9.0843%

Winning in 2043 = Winning in 2015 * (1 + Interest Rate)^Period
Winning in 2043 = $1,560,000 * 1.090843^28
Winning in 2043 = $1,560,000 * 11.4115063
Winning in 2043 = $17,801,890.25

Winner will get $17,801,890.25 in 2043

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The winner of the first annual Tom Morris Golf Invitational won $105 in the competition which...
The winner of the first annual Tom Morris Golf Invitational won $105 in the competition which was held in 1899. In 2015, the winner received $1,460,000. If the winner's purse continues to increase at the same interest rate, how much will the winner receive in 2050?
MATHEMATICS 1. The measure of location which is the most likely to be influenced by extreme...
MATHEMATICS 1. The measure of location which is the most likely to be influenced by extreme values in the data set is the a. range b. median c. mode d. mean 2. If two events are independent, then a. they must be mutually exclusive b. the sum of their probabilities must be equal to one c. their intersection must be zero d. None of these alternatives is correct. any value between 0 to 1 3. Two events, A and B,...
Review and submit the Donatos: Finding the New Pizza case study below. Answer the following two...
Review and submit the Donatos: Finding the New Pizza case study below. Answer the following two questions: 2. Evaluate the Wassup meeting as an exploratory methodology to help define the research question. 4. What measurement scales would you have used on the survey that was part of the in-restaurant product tests? Abstract and Written Case: The pizza segment of the fast-food industry is very aggressive. As people’s tastes change and new diets become the rage, restaurant chains must decide if...
The questions: 1. What type of technology Acme and Omega utilize to transform inputs into outputs?...
The questions: 1. What type of technology Acme and Omega utilize to transform inputs into outputs? 2. Which strategic choice (differentiation or cost leadership) suits best to Acme? Omega? Do these companies have clear strategic choices or do they stuck in the middle? 3. Based on all the contingencies which type of structure is more suitable for these companies; mechanistic or organic? please answer each question alone The Paradoxical Twins: Acme and Omega Electronics John F. Veiga Part! boom of...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s largest and most successful retailer, with $487.5 billion in 2014 sales and nearly 11,000 stores worldwide, including more than 4,000 in the United States. Walmart has 2.2 million employees and ranks first on the Fortune 500 list of companies. Walmart had such a large and powerful selling machine that it really didn’t have any serious competitors—until now. Today, Walmart’s greatest threat is Amazon.com, often...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Read the attached articles about the proposed merger of Xerox and Fujifilm. Utilizing your knowledge of...
Read the attached articles about the proposed merger of Xerox and Fujifilm. Utilizing your knowledge of external and internal analysis, business and corporate strategy, and corporate governance, please discuss the following questions: 1. What is the corporate strategy behind the merger of Xerox and Fujifilm? 2. Why did Xerox agree to the merger? Is this a good deal for Xerox? Discuss the benefits and challenges they face with the merger. 3. Why did Fujifilm agree to the merger? Discuss the...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT