Question

A UK lottery prize pays £10000 at the end of the first year, £11000 at the...

A UK lottery prize pays £10000 at the end of the first year, £11000 at the end of the second year, £12000 at the end of the third year, and so on for 20 years.   If this is the only prize in a lottery, 10,000 tickets are sold, and you could invest your money elsewhere at 10% interest rate (compounded annually), how much is each ticket worth, on average?

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Answer #1

Each ticket worth ,On average = $ 14.05

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