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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 $2 million now.- s6 s. p0 X* M
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.2 @& t/ H' _+ D
Assume the following:, x/ A; x. u+ {: C4 e
- r = 0.06 (6 percent)
! A9 ~$ ^' p+ S3 t. }# {- Interest is paid annually to the Lottery Corporation |
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