MA170wk6solns - MA170 Week 6 Report: Ordinary Simple...

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MA170 Week 6 Report: Ordinary Simple Annuities; Arithmetic and Geometric Progressions Name: ______SOLUTIONS______________ Lab: Fall 2010 1. [4 marks ] A lottery gives the jackpot winner the choice of taking one of the following 2 options: (i) $10 000 000 lump sum OR the winner receives twice as much as the day before, continuing for one month (in this case assume the month has 30 days). Taking only the jackpot winnings into account, which option would you rather take? Geometric progressions with n = 30 , t 1 = 0 : 01 , r = 2 S 30 = 0 : 01 + 0 : 02 + 0 : 04 + 0 : 08 + ::: + 0 : 01(2) 29 = 30 X i =1 0 : 01(2) i 1 = 0 : 01 2 30 1 2 1 ± = 0 : 01 (1073741823) = $10 ; 737 ; 418 : 23 Thus, I would receive more money by taking the second option, so my choice if I won this lottery would be option (ii) 2. [4 marks ] each additional 10 cm, the cost increases by $2. If the company’s budget allows for $1500 towards the cost of drilling the well, determine how deep a well may be drilled. Express your answer in metres. We have an arithmetic progressions where
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This note was uploaded on 03/03/2012 for the course MATH 170 taught by Professor F.vinette during the Fall '11 term at Wilfred Laurier University .

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MA170wk6solns - MA170 Week 6 Report: Ordinary Simple...

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