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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 $2 million now.
+ i ]! i6 K' [. Va) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.* S& ]) u) w. s# e/ O( q2 s. d
Assume the following:, ^4 ?$ g" j8 j5 h
- r = 0.06 (6 percent)
3 l" k5 a: J! `# q/ o9 j1 a- Interest is paid annually to the Lottery Corporation |
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