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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.
- M) h/ V2 D/ d) Ya) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
4 G- X& g& F- D8 K) q! E; b% bAssume the following:4 A& |% w6 a. L; V- ^
- r = 0.06 (6 percent)
, G; i* D7 B7 i) R1 q- Interest is paid annually to the Lottery Corporation |
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