9. A sports mortgage is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a "mortgage" for the right to buy good seats at football games for several decades with season tickets locked in at current prices. At Notre Dame, the locked-in price period is 50 years. If a fan pays a $130,000 *mortgage" fee now (i.e., in year 0) when season tickets are selling for $290 each, what is the equivalent annual cost of the football tickets over the 50-year period at an interest rate of 8% per year?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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9. A sports mortgage is an innovative way to finance cash-strapped sports
programs by allowing fans to sign up to pay a "mortgage" for the right to buy
good seats at football games for several decades with season tickets locked
in at current prices. At Notre Dame, the locked-in price period is 50 years.
If a fan pays a $130,000 “mortgage" fee now (i.e., in year 0) when season
tickets are selling for $290 each, what is the equivalent annual cost of the
football tickets over the 50-year period at an interest rate of 8% per year?
Transcribed Image Text:9. A sports mortgage is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a "mortgage" for the right to buy good seats at football games for several decades with season tickets locked in at current prices. At Notre Dame, the locked-in price period is 50 years. If a fan pays a $130,000 “mortgage" fee now (i.e., in year 0) when season tickets are selling for $290 each, what is the equivalent annual cost of the football tickets over the 50-year period at an interest rate of 8% per year?
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