First sporting event was held

Assignment Help Financial Management

Reference no: EM13868477

In 1895, the first a sporting event was held. The winner's prize money was $160. In 2007, the winner's check was $1,180,000

(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?

Reference no: EM13868477

Questions Cloud

Cost of trade credit and bank loan : Lamar Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 30; and it currently pays after 5 days and takes discounts. Lamar plans to expand, which will require additional financing. Assume 365 days in year for your calculation..

Annual interest on the investment up until her death : You're left you some stock worth $200,000 in her will. She originally purchased the stock for $48,000, and she earned 4.5 percent annual interest on the investment up until her death. How long ago did she purchase the stock?

About the cash conversion cycle : Primrose Corp has $19 million of sales, $2 million of inventories, $4 million of receivables, and $2 million of payables. Its cost of goods sold is 80% of sales, and it finances working capital with bank loans at an 6% rate. What is Primrose's cash c..

Present value of your windfall if appropriate discount rate : You have just received notification that you have won the $3.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 64 years from now. What is the present value ..

First sporting event was held : In 1895, the first a sporting event was held. The winner's prize money was $160. In 2007, the winner's check was $1,180,000. What was the percentage increase per year in the winner's check over this period? If the winner's prize increases at the same..

How much will your collection be worth when you retire : Your coin collection contains 45 1954 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2057, assuming they appreciate at a 8 percent annual rate?

Annual interest on its accounts : You're trying to save to buy a new $140,000 Ferrari. You have $39,000 today that can be invested at your bank. The bank pays 3.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

Treasury bonds which pay semi-annual coupons : Consider 3 Treasury bonds which pay semi-annual coupons. Bond A has 5 years remaining to maturity and a coupon rate of 10%. Bond B has 20 years remaining to maturity and a coupon rate of 10%, and Bond C has 20 years remaining to maturity and a coupon..

Assumed to earn sufficient revenues to generate tax shields : Pilot Plus Pens is deciding when to replace its old machine. The machines current salvage value is $2.26 million. Its current book value is $1.46 million. If not sold, the old machine will require maintenance costs of $851,000 at the end of the year ..

User Account

All Pages