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.+ @. V9 ?. {3 r/ O! y
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. / w" m) A2 U9 d3 @4 @# UAssume the following:3 @5 J; y& o0 ~
- r = 0.06 (6 percent) 7 f2 `5 v7 q8 m/ q* V; _! M. V- Interest is paid annually to the Lottery Corporation