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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 $2 million now.
, c$ S% q! n. m' Ma) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
$ m8 a5 l" b3 q4 HAssume the following:
) V( c( ]( w. u1 R) l: O- r = 0.06 (6 percent)
: P) }, j o+ }0 y$ I" Z, {5 d/ w- Interest is paid annually to the Lottery Corporation |
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