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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 $2 million now.
& j- c8 W2 i' ^% aa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.% F% T5 c& M% j4 c7 G$ ]7 ~
Assume the following:6 @! q8 Z# p4 v7 u! _' U! ^
- r = 0.06 (6 percent)
+ K0 K l, u; I6 T4 E" A- Interest is paid annually to the Lottery Corporation |
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