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 $2 million now.1 q# B$ ?! n* f3 e; E$ N' ?# c; J
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.7 F4 v/ q O- ?
Assume the following: + D/ T& h$ p# c" K. ~* I0 w: ]- r = 0.06 (6 percent) ! D5 [) C: y1 X% _+ ?% e- Interest is paid annually to the Lottery Corporation