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. 8 \5 \( w* E5 C0 z# n9 Ia) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.1 W" x/ I% R" D5 {7 U
Assume the following:* _" ]# R4 b$ w3 I
- r = 0.06 (6 percent)1 B1 b- L$ c" ^' e9 I' p
- Interest is paid annually to the Lottery Corporation