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.: K7 i- s0 n# W M) \4 Q2 c7 g
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.( q1 G6 U. G8 [5 n. D
Assume the following: ( Z! e. U `5 o& {) x- r = 0.06 (6 percent)9 D b0 M6 Z: @& R
- Interest is paid annually to the Lottery Corporation