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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 $2 million now.
4 m. i- H4 j+ r: `6 C4 qa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.) M1 D) _8 ~3 t1 a# f
Assume the following:
. b2 ]$ G3 l% d1 Q' E6 S- r = 0.06 (6 percent)
- Z# [, X& G7 ?# f! Y' N! T- Interest is paid annually to the Lottery Corporation |
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