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." d0 G. h+ O0 ?" S3 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.( @3 {) F/ i' _7 [- a
Assume the following: 9 X1 I) g% U) v G, G8 t# H5 `- r = 0.06 (6 percent)% s V6 E& q3 [0 T6 C
- Interest is paid annually to the Lottery Corporation