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. . {- f' e3 L8 v* w3 c- g0 ta) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.: v8 Y4 s9 z1 L6 k: \
Assume the following:/ A# d/ u0 C# o* U
- r = 0.06 (6 percent). s( A; y3 F* r- s- g5 ?! X# `
- Interest is paid annually to the Lottery Corporation