In 1895, the winner of a competition was paid $110. In 2006, the winner's prize was $70,000. What will the winner's prize be in 2040 if the prize continues increasing at the same rate?
A)$389,400
B)$421,122
C)$479,311
D)$505,697
E)$548,121

Question

Quizplus · Accepted Answer

$70,000 = $110 F1F1F1S1F1F1F10 (1 = r)¹¹¹; r = 5.988466 percentFV = $70,000 F1F1F1S1F1F1F10 (1 + .05988466)³⁴ = $505,697

In 1895, the Winner of a Competition Was Paid $110