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 ]% ^ e5 I/ r! p
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.! c6 x3 f: e. E8 m- g
Assume the following: 2 O' r# ^5 i% F D- r = 0.06 (6 percent) 5 d6 u' A4 n6 Q3 ^( C: z. i- Interest is paid annually to the Lottery Corporation