Question
A/ The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $600 at the
A/ The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $600 at the end of January, $2,100 at the end of February, $3,600 at the end of March, and so on up to $17,100 at the end of December. At the beginning of the next year, the sequence repeats starting at $600 in January and ending at $17,100 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 850,000 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.
B/ A flood control project at Pleasant Valley dam is projected to cost $2,400,000 today, have annual maintenance costs of $52,000, and have major inspection and upkeep after each 10-year interval costing $200,000. If the interest rate is 7%/year.
Determine the total capitalized cost. $
Round entry to 0 decimal places. The tolerance is 9.
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