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 $2 million now.: ]3 ?( A3 T: ]7 k
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. / |0 ^( O. U3 C$ ^Assume the following: 2 E5 u u( {; @. t+ T- }2 t- r = 0.06 (6 percent)" o" {! K" V- F& a4 C( `
- Interest is paid annually to the Lottery Corporation