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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 $2 million now.
1 U5 f$ {& `3 P( ia) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
/ z2 Z: w6 A: V \Assume the following:
7 W, G' B+ u/ q7 l/ I- r = 0.06 (6 percent)
. B1 {0 a* m" `; R0 k. y. h8 l/ q# J' ], f- Interest is paid annually to the Lottery Corporation |
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