A UK lottery prize pays 1000$ at the end of the first year, 2000$ at the second, 3000$ the third, and so on for 20 years. If there is only one prize in the lottery, 10000 tickets are sold, and you could invest your money elsewhere at 15 percent interest, how much is each ticket worth, on average ?
Answer : 3.98 $
Can anyone solve it by converting Arithmetic Series to Annuity first, and then converting Annuity to Present Value ? When I solve it, I am getting the answer 3.35.
Please dont solve it by calculating every year separately. Thanks
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A UK lottery prize pays 1000$ at the end of the first year, 2000$ at the second, 3000$ the third, and so on for 20 years...