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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.
: Z. ?: d( D0 L4 u0 na) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
, N/ m4 W2 o. y; ?; n- A" LAssume the following:
$ p. Y/ g8 r! c- r = 0.06 (6 percent)
/ D7 C; C" f Y: K. e0 }- Interest is paid annually to the Lottery Corporation |
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