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.

Follow the trail...

Defnition: r = Level Annual Percentage Increase

2006 - 1895 = 111

110*(1+r)^111 = 70000

Now what?

,

if the winner’s prize increases at the same rate, what will it be in 2047?

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