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. * K' D: w, @* L+ S" Ua) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.* ^8 E8 B9 Q0 H9 | N6 L. O3 G
Assume the following: 0 Y* \& z* X- a! P* m" H- r = 0.06 (6 percent)3 }7 W" d0 F! e3 k9 {
- Interest is paid annually to the Lottery Corporation