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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.
3 u( J# I" \/ o' z) sa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
" \) V+ _) ]' g9 o! |Assume the following:
& `8 D$ Q2 ~2 M6 Y5 x- r = 0.06 (6 percent)7 i; Q6 x, ^2 A" F. Z" I0 s! C% \
- Interest is paid annually to the Lottery Corporation |
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