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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.7 {6 G- s6 G0 o4 A0 O
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 y) C5 S% G4 z
Assume the following:
9 i- ]5 i7 U: {3 }- r = 0.06 (6 percent)
# @0 g+ r l5 X4 t2 Y, `; U- Interest is paid annually to the Lottery Corporation |
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