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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 $2 million now.$ Z2 D, e+ n$ {6 _
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
3 m, q0 u6 [0 M1 qAssume the following: m Z( F# A0 _# v4 `5 T% [ i
- r = 0.06 (6 percent) |4 r+ {! f: C) {7 y% _ s
- Interest is paid annually to the Lottery Corporation |
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