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
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The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will
receive $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 of
December. 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, what
is the minimum price they can charge for the tickets to break even, assuming the commission earns 9.00 %/year 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.
Transcribed Image Text:The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $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 of December. 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, what is the minimum price they can charge for the tickets to break even, assuming the commission earns 9.00 %/year 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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