A. You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 68 years from now.
What is the present value of your windfall if the appropriate discount rate is 9 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Present value $
B. In 1895, the first Putting Green Championship was held. The winner’s prize money was $180. In 2014, the winner’s check was $1,500,000.
What was the percentage increase per year in the winner’s check over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Increase per year %
If the winner’s prize increases at the same rate, what will it be in 2045? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Winner's prize in 2045 $