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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 $2 million now.0 H6 a/ i( c t/ r! H4 k2 m
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.5 C$ D# ^$ E9 N. @* u7 D0 [
Assume the following:
6 J9 H, X) c4 W" ~" U" a5 e2 G/ x& k+ T- r = 0.06 (6 percent)
1 t1 l1 }: v9 v' {' y- x! {- Interest is paid annually to the Lottery Corporation |
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