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.& Q* f; |3 z8 S2 f% z; 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.' B: G3 {! \8 G e; U
Assume the following: s8 _& D [ m; h- r = 0.06 (6 percent)4 C( N! _! D+ J2 r* p9 P
- Interest is paid annually to the Lottery Corporation