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.2 ^: n; P8 G% e/ f
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. @8 b0 a; s! C- u: V/ ?5 _0 ZAssume the following:1 t R' p1 n5 f/ ]
- r = 0.06 (6 percent) 6 F) {6 W6 z' A: _+ d, {# J- Interest is paid annually to the Lottery Corporation