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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.4 a9 L( B3 P2 m
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.5 t4 x* V; `# |8 k' ?
Assume the following:. k, D5 N- p. y4 M) e' o S
- r = 0.06 (6 percent)
' R4 g- v- O3 T8 x6 k" V4 p: A- Interest is paid annually to the Lottery Corporation |
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