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 $2 million now., N4 H/ I% }! r4 R+ P- D: }
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.' N- E0 _! d$ l& }
Assume the following: & i* `% h" k* g) y/ p- r = 0.06 (6 percent) % M1 r+ ]5 Y" Q! {& z; ?- Interest is paid annually to the Lottery Corporation