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 $2 million now.* a1 o% F) I$ s* I
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. 4 A; F2 k1 q N2 p7 ~Assume the following:! ~; `/ ]8 p. O4 i$ O4 Z
- r = 0.06 (6 percent)5 c8 A$ s5 ?8 e* a; y
- Interest is paid annually to the Lottery Corporation