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 $2 million now. " W9 t- Z! f. e9 Ja) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.' v& p3 ^: ]2 v1 Z: a
Assume the following:. r1 l4 }$ x n/ f* o
- r = 0.06 (6 percent) |6 N3 P" v5 p& @- Interest is paid annually to the Lottery Corporation