Re: Lotteries Redux
Wayne Mackey (wmackey@COMP.UARK.EDU)
Wed, 5 Feb 1997 09:54:43 -0600
>A while ago I wrote the following, concerning lotteries.
>>There are many who spend at least $10 or more per week on average to
>>win a lottery. So I guess a good question is, how long would it take
>>to accumulate $1,000,000 this way, at say 4% interest. Of course this
>>is a straightforward annuity type problem (not that I have the
>>formula in front of me!) but most people don't understand the power of
>>persistent saving.
>
>I was sure that in 30 years or so this would produce that million dollars,
>thus showing that the average lottery ticket buyer has an intelligent, viable
>option to riches. Boy was I wrong. I feel obligated to the list to correct
>this impression.
>
>If my figures are correct, the following shows some interesting (for me
>anyway) results. I haven't taught finite math in years and I did have fun
>recreating the necessry formula, but that means I may have made a mistake. If
>so, feel free to supply the correct figures to the list.
> ------------------
>Values of yearly interest rate, amount deposited weekly, number of years
>required, amount actually deposited, to produce $1,000,000.
>
>4%, $10 weekly, 109 years, contribution $56,680
>8%, $10 weekly, 64 years, contribution $33,280
>4%, $332 weekly, 30 years, contribution $517,920
>4%, $153 weekly, 45 years, contribution $358,020
>6%, $84 weekly, 45 years, contribution $196,560
>8%, $44 weekly, 45 years, contribution $102,960
> ------------------
>
>Anyway, you may reall that the list was discussing whether playing the
>lottery at say $10 per week is foolish. I agree more than ever (with
>Geoff Akst) that it's probably about as good as any other way to become a
>millionaire.
>
>Phil Mahler
>Middlesex CC
>Bedford, MA
I always knew there was a good reason why I didn't try to save money.
wayne
Wayne F. Mackey
SCEN #301
University of Arkansas
(501) 575-7661
wmackey@comp.uark.edu