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 $2 million now." I/ Q3 v( B4 Y& ] C7 W
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. ' _# W6 R; Z$ K& pAssume the following:+ }2 G0 C" i0 C8 T b7 W+ G
- r = 0.06 (6 percent) " [* K1 n& G2 P1 d+ _- Interest is paid annually to the Lottery Corporation