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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 $2 million now.
- o2 R" C0 k5 \; L- e6 xa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
! B; `, B' h$ J- fAssume the following:* G' ^ T% ?( \. n
- r = 0.06 (6 percent)
$ \+ ~) O9 n! I+ l( h0 [- Interest is paid annually to the Lottery Corporation |
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