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 $2 million now. & V$ o; M" o" g v- ra) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.8 o/ p& T9 a% L$ C& R
Assume the following:9 v1 y! \( ]+ L
- r = 0.06 (6 percent) + M/ f% X$ `( F1 m5 T7 P- Interest is paid annually to the Lottery Corporation