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 W' A& w7 F! s* J4 G6 Na) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.% e1 M8 Z/ f. D
Assume the following:/ h( `5 E* L0 O4 F2 {
- r = 0.06 (6 percent)& G+ Q7 }. `+ p+ Z3 w9 n
- Interest is paid annually to the Lottery Corporation