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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.
9 e) O* `, \) { Q; Oa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.) v6 P0 p6 [# f% ~
Assume the following:! ~6 |6 Z; E5 s
- r = 0.06 (6 percent)4 {' q6 `, O6 |' S
- Interest is paid annually to the Lottery Corporation |
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