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. 1 X3 E8 Q2 X6 i( M+ [a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.9 I: z4 y1 _4 l' P- S
Assume the following:. z0 V- ?# X1 q& u: r5 h
- r = 0.06 (6 percent)1 j+ g! H! a5 J
- Interest is paid annually to the Lottery Corporation