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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.2 w3 \ [7 o. n& p' o) T% B
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.3 V3 t" H0 G! d6 t7 R' Y, i
Assume the following:
- [" r8 t/ n2 K/ h7 d* B0 `, c* X- r = 0.06 (6 percent)5 [8 M0 S7 |5 ?1 J2 ?7 e
- Interest is paid annually to the Lottery Corporation |
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