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.: L4 C6 a+ `" x7 s: i: F: E+ `
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.' M0 g" {4 N. A* c4 G
Assume the following: ) U/ w8 F6 W/ @- T" {0 F3 x6 @6 x e2 E- r = 0.06 (6 percent) 1 n8 |7 G1 g8 e# B! q: W: V. L- Interest is paid annually to the Lottery Corporation