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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 $2 million now., @3 z1 I1 @) A5 ~
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.* J9 T" f0 k, W- S% h# F7 n
Assume the following:' H0 G! e t1 O/ {% r
- r = 0.06 (6 percent)
) U$ `6 A& g' c- Interest is paid annually to the Lottery Corporation |
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