The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot willreceive $800 at the end of January, $2,300 at the end of February, $3,800 at the end of March, and so on up to $17,300 at the end ofDecember. At the beginning of the next year, the sequence repeats starting at $800 in January and ending at $17,300 in December.This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 1,200,000 tickets, whatis the minimum price they can charge for the tickets to break even, assuming the commission earns 9.00 %/year on its investments andthere is exactly one winning ticket?$Do all calculations to 5 decimal places and round final answer to 2 decimal places. Tolerance is ±$0.03.

Break even price is the minimum price at which all cost are recovered including time value of the…

gaming sion is introducing a new lottery game called Infinite Progresso. The winner receive $800 at the end of January, $2,300 at the end of February, $3,800 at the end of March, December. At the beginning of the next year, the sequence repeats starting at $800 in January a This annual sequence of payments repeats indefinitely. If the gaming commission expects to sel is the minimum price they can charge for the tickets to break even, assuming the commission ea there is exactly one winning ticket? $

gaming sion is introducing a new lottery game called Infinite Progresso. The winner receive $800 at the end of January, $2,300 at the end of February, $3,800 at the end of March, December. At the beginning of the next year, the sequence repeats starting at $800 in January a This annual sequence of payments repeats indefinitely. If the gaming commission expects to sel is the minimum price they can charge for the tickets to break even, assuming the commission ea there is exactly one winning ticket? $

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

A state lotto has a prize that pays $500 each week for 35 years.Find the total value of the prize: $ If the state can earn 6% interest compounded weekly on investments, how much money will they need to put into an account now to cover the weekly prize payments?$ Reminder: There are 52 weeks in a year.
You have just won a two-part lottery! The first part will pay you $50,000 at the end of each of the next 20 years. The second part will pay you $1,000 at the end of each month over the same 20 year period. Assuming a discount rate of 7%, what is the present value of your winnings? $658,683 $567,572 $529,303 $610,462 $495,048
You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $700, 000 per year. Thus, in one year you receive $1.70 million. In two years, you get $2.40 million, and so on. If the appropriate discount rate is 8.0 percent, what is the value of your winnings today? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e. g., 1,234,567.89.)
You have just won a two-part lottery! The first part will pay you $50,000 at the end of each of the next 20 years. The second part will pay you $1,000 at the end of each month over the same 20 year period. Assuming a discount rate of 9%, what is the present value of your winnings? use a HP 10bII+ to solve it
A state lotto has a prize that pays $1,000 each week for 25 years. Find the total value of the prize: $ 1300000 If the state can earn 4% interest on investments, how much money will they need to put into an account now to cover the weekly prize payments? Reminder: There are 52 weeks in a year.
can you solve in the excel file please. Thanks 2. ABC Lottery Corporation runs the "Millionaire Life" lottery. The winner of the Grand Prize can choose either $1,000,000 per year for 25 years or a single cash payment of $17,000,000. Which option should be chosen if the payments are made at the beginning of each year and, on low-risk investments, money can earn 3.2% compounded annually?
You have just won the lottery and must decide between $3,000,000 paid in 20 annual payments of $150,000 with the first payment coming one year from today or a lump sum payment today. If fair market interest rates are 7% what lump sum payment today is equivalent to the annual $150,000 payments? Round your answer to the nearest dollar.
Show work please. Thank you
Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or $270,000 a year for 18 years, with the first payment starting one year from today. What annual interest rate does the second choice provide? 6.75% 7.49% 7.89% 6.28%
Could you please help me to solve this?
A morning radio show offered the following four prizes as alternative prizes for one of its competitions. Which prize is the most valuable if your discount rate is 6%? (Show working to justify your answer.) (a) $5,000 per year, forever, with the first amount paid after 1 year. (b) $12,000 per year for eight years, with the first amount paid today. (c) $20,000 today and $80,000 six years from now. (d) $15,000 per year for ten years, with the first amount paid at year 5. (e) State the most valuable prize. (Give a reason for your choice.)
A contract requires that Bob makes payments of $2946 and $3568 to Jim 24 and 39 months respectively. Bob would like to change the payment structure to a payment of $1590 today, and a second payment made 36 months from today. If the two sets of payments are economically equivalent, and the interest rate is 5.2% compounded quarterly, then what is the amount of the second payment? Give your answer rounded to the nearest cent.

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