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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 $2 million now.
: Q) m, F- I# I9 {# z' i* Na) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
' @# h/ [9 ?0 {1 {Assume the following:
. {$ T/ T+ R3 d5 |8 Y; R: q- r = 0.06 (6 percent)
" S# j4 I# H$ p- R0 T- Interest is paid annually to the Lottery Corporation |
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