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 $2 million now. ) l# a# S" c; B- g5 ^a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. * b4 j! O( u o3 r% sAssume the following:% I4 o% K. b# B3 T5 c: P' a
- r = 0.06 (6 percent)( F! t' d6 Q' D8 a$ d+ a
- Interest is paid annually to the Lottery Corporation