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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.
: o! }0 i# h Ca) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.: n/ t% u1 J; z, I! f
Assume the following:
$ c- j5 j! x8 Y: x$ b- r = 0.06 (6 percent)
, J5 f# u& {# z0 L/ a$ t& t# k6 h" b' {- Interest is paid annually to the Lottery Corporation |
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