The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite
Question:
The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive \($1\),000 at the end of January, \($2\),000 at the end of February, \($3\),000 at the end ofMarch, and so on up to \($12\),000 at the end of December. At the beginning of the next year, the sequence repeats starting at \($1\),000 in January and ending at \($12\),000 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 1 million tickets, what is the minimum price they can charge for the tickets to break even, assuming the commission earns 6 percent/year/month on its investments and there is exactly one winning ticket.
Step by Step Answer:
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt