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, $2,700 at the end of February, $4,200 at the end of March, and so on up to $17,700 at the end of December. At the beginning of the next year, the sequence repeats starting at $1,200 in January and ending at $17,700 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 800,000 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.

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, $2,700 at the end of February, $4,200 at the end of March, and so on up to $17,700 at the end of December. At the beginning of the next year, the sequence repeats starting at $1,200 in January and ending at $17,700 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 800,000 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.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 7E

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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 $1,000 at the end of January, $1,700 at the end of February, $2,400 at the end of March, and so on up to $8,700at the end of December. At the beginning of the next year, the sequence repeats starting at $1,000 in January and ending at $8,700 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 1,150,000 tickets, what is the minimum price they can charge for the tickets to break even, assuming the commission earns 3.00%/year on its investments and there is exactly one winning ticket? $
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