In 1895, the winner of a competition was paid $150. 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?

Duration between 1895 & 2006 is 111 Years,

CAGR= (Futurevalue/Presentvalue)^(1/Years)-1

=(70000/150)^(1/111)-1

=466.6666667^(1/111)-1

CAGR=0.05692727673

It is the Growth rate for the 2040,

The duration between 2006 and 2040 is 34 years

Futurevalue = Present value*(1+CAGR)^Years

=70000*(1+0.05692727673)^34

=70000*6.56951953708

Value in Year 2040 is $459866.367595