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 $2 million now.! D& Q3 i$ Y8 t8 E
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.8 [& r% E- ~1 v1 t( m4 I. \( T o
Assume the following: ! C$ a6 ^1 E4 t7 {4 B- r = 0.06 (6 percent)' h8 {- A5 D: C( N
- Interest is paid annually to the Lottery Corporation