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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 $2 million now.
* j! \; C& [$ M, S% Z8 I0 Ma) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
7 S4 Y* y5 w& e# `Assume the following:, v0 R: B) t( F7 J% q7 i. K" ~
- r = 0.06 (6 percent)1 @9 g0 z. [7 ^5 w% k+ E& R! r8 }
- Interest is paid annually to the Lottery Corporation |
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发表于 2010-1-24 22:43
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