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 $2 million now./ a2 ~( w) C% W: F( h6 C/ K
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.( a N/ L0 K# h P1 h" n
Assume the following: ' ]2 @( Y: I$ ^- r = 0.06 (6 percent)7 p' O1 j% d; S+ A/ Q
- Interest is paid annually to the Lottery Corporation