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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 $2 million now.
/ M$ o7 b# a4 k: G) @+ w1 h" Sa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.6 \6 G! Y/ b Z: }( s8 K7 T
Assume the following:
; q5 n* q. w% f3 L& o4 d- r = 0.06 (6 percent)
; [" u9 N- e, J" o5 O2 n6 K- Interest is paid annually to the Lottery Corporation |
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