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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 x+ M" @+ e- v: u7 t* e* Ca) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.5 e8 q2 a) ` d
Assume the following:, w; h. V3 I# Q' p
- r = 0.06 (6 percent) R/ P2 e. J5 H: a- o' y
- Interest is paid annually to the Lottery Corporation |
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