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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 $2 million now., {; \; t0 U$ f3 f3 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 ~ z ?" S& K7 e8 FAssume the following:
+ m9 R0 y* K( j& I% }8 l: {- r = 0.06 (6 percent)
/ @- s. y3 P3 B& u- Interest is paid annually to the Lottery Corporation |
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