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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 $2 million now.
: L5 I! _6 F- i' H* K+ S/ [a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
. W1 S$ n3 @$ u9 d3 {Assume the following: g3 v6 Z3 ?% h* q% L4 \% R/ i
- r = 0.06 (6 percent)
6 }' O, }; U+ l7 X- Interest is paid annually to the Lottery Corporation |
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