A lottery offers the chance to win a prize of receiving payments
forever starting with $200...
90.2K
Verified Solution
Link Copied!
Question
Advance Math
A lottery offers the chance to win a prize of receiving paymentsforever starting with $200 for the first payment followed by eachconsecutive payment increasing by $250 until the payment sizereaches $700. If you receive a payment every quarter, with thefirst in one quarter and interest is earned at j4 = 5%,what amount must the lottery have in the account today to fund theprize?
Answer & Explanation
Solved by verified expert
3.7 Ratings (563 Votes)
Firstly following are the payments without interest addedthat need to be made by the lotteryPayment 1 200Payment 2 200250 450Payment 3 450250 700This payment of 700 needs to be made forever Hence
See Answer
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
