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. - p5 x# v, m! P [# }7 a: }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" @7 }* w- u8 t
Assume the following: 7 q7 B* l! Z7 D1 z- J5 {- r = 0.06 (6 percent) w* z2 |7 `0 W9 t6 R8 P
- Interest is paid annually to the Lottery Corporation