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 $2 million now.! }+ S9 J: e* y0 K |, i( k) m
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. 2 D) M8 P& G$ C5 F( q. J$ J: q# }7 \Assume the following: / x& ^' n2 d( C. m7 O6 o- r = 0.06 (6 percent) V/ F: o6 D) b# g+ |
- Interest is paid annually to the Lottery Corporation