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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 $2 million now.2 N. g5 n# v, h7 s& K V0 R
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
1 g/ U" Q* G+ R: nAssume the following:' b4 Z( L% Y, j& T4 g+ B
- r = 0.06 (6 percent)
& p( F6 y* P$ h: |0 ~5 p$ o- Interest is paid annually to the Lottery Corporation |
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