The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $1,200 at the end of January, $1,800 at the end of February, $2,400 at the end of March, and so on up to $7,800 at the end of December. At the beginning of the next year, the sequence repeats starting at $1,200 in January and ending at $7,800 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 950,000 tickets, what is the minimum price they can charge for the tickets to break even, assuming the commission earns 3.00 %/year/month on its investments and there is exactly one winning ticket?
The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $1,200 at the end of January, $1,800 at the end of February, $2,400 at the end of March, and so on up to $7,800 at the end of December. At the beginning of the next year, the sequence repeats starting at $1,200 in January and ending at $7,800 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 950,000 tickets, what is the minimum price they can charge for the tickets to break even, assuming the commission earns 3.00 %/year/month on its investments and 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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i want accurate answer with proper explanation please no handwriting only typed answer
Transcribed Image Text:The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of
the Infinite Progresso jackpot will receive $1,200 at the end of January, $1,800 at the end of
February, $2,400 at the end of March, and so on up to $7,800 at the end of December. At the
beginning of the next year, the sequence repeats starting at $1,200 in January and ending at $7,800
in December. This annual sequence of payments repeats indefinitely. If the gaming commission
expects to sell a minimum of 950,000 tickets, what is the minimum price they can charge for the
tickets to break even, assuming the commission earns 3.00 %/year/month on its investments and
there is exactly one winning ticket?
$
Do all calculations to 5 decimal places and round final answer to 2 decimal places. Tolerance is ±$0.03.
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