Congratulations! You have won the Lottery For Life and are the proud winner of $1,000 per week for the rest of your life!! You have the option of accepting a cheque for $1000 per week until you die, or reach the age of 75, whichever comes sooner. Alternatively, you may accept a cash payout of $2 million now. ) T; _! i4 H9 _& V# ya) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.; y) w+ l M0 O- O0 p! v" ?9 a
Assume the following: 2 ^; o2 X" ~* j- r = 0.06 (6 percent) ! D4 G! W) t# A, b- Interest is paid annually to the Lottery Corporation