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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 $2 million now.' A+ B8 V, ^& l) f% H2 t/ W
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.! K" }, j8 ]5 W5 z$ b
Assume the following:5 i, a l& O+ c+ ~
- r = 0.06 (6 percent)( D9 s1 N5 i7 t
- Interest is paid annually to the Lottery Corporation |
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发表于 2010-1-24 22:43
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