The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $700 at the end of January, $1,900 at the end of February, $3,100 at the end of March, and so on up to $13,900 at the end of December. At the beginning of the next year, the sequence repeats starting at $700 in January and ending at $13,900 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 900,000 tickets, the minimum price they can charge for the tickets to break even, assuming the commission earns 12.00 %/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 $700 at the end of January, $1,900 at the end of February, $3,100 at the end of March, and so on up to $13,900 at the end of December. At the beginning of the next year, the sequence repeats starting at $700 in January and ending at $13,900 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 900,000 tickets, the minimum price they can charge for the tickets to break even, assuming the commission earns 12.00 %/year/month on its investments and there is exactly one winning ticket.
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