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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 $2 million now.
- W4 G9 Y$ V! v# l6 k1 ~ ~( ^, c/ Qa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
# Y! u5 x4 E. `Assume the following:
' n( E" Y# z# A; s: g; v- r = 0.06 (6 percent)
b2 j8 J$ V0 [5 H: a4 |- C; W- Interest is paid annually to the Lottery Corporation |
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