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, $2,500 at the end of February, $3,800 at the end of March, and so on up to $15,500 at the end of December. At the beginning of the next year, the sequence repeats starting at $1,200 in January and ending at $15,500 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 1,050,000 tickets, what is the minimum price they can charge for the tickets to break even, assuming the commission earns 6.00 %/year/month on its investments and there is exactly one winning ticket?

Answer rating: 100% (QA)

i 6 per year 6 12 05 per month 0005 Equivalent uniform monthly payme... View the full answer