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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.0 u/ v: X3 {. \) M; R
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.. g$ e5 O$ ~" }7 G% w4 n5 ? y
Assume the following:
' @" w2 N9 B4 X& F$ ~- r = 0.06 (6 percent)
1 U, }7 ?: U& q3 z8 J% o2 C% V4 p- Interest is paid annually to the Lottery Corporation |
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