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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 $2 million now.6 S$ a; g& L& d' ?
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# M0 o, Y9 P8 h2 g+ T0 k3 ZAssume the following:
# M! |8 M# Q, a/ R" I' c- r = 0.06 (6 percent)
- ^4 j; z A; A) S+ q9 F7 S- Interest is paid annually to the Lottery Corporation |
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