# Thread: calculating interest rates and future values

1. ## calculating interest rates and future values

In 1895, the winner of a competition was paid $110. In 2006, the winner's prize was$70,000. This is a percent increase in the winner's prize over this period. If the winner's prize increases at the same rate, it will be \$ in 2040.

2. The wording is not real clear.

Defnition: r = Level Annual Percentage Increase

2006 - 1895 = 111

110*(1+r)^111 = 70000

Now what?