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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 $2 million now., }3 u! }! a. j9 d
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.$ E3 d+ q0 D! G! k
Assume the following:
6 i8 H7 _: K( T& Z- r = 0.06 (6 percent)$ R, e" G& m# \8 `, m. k/ Y7 D
- Interest is paid annually to the Lottery Corporation |
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