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 $2 million now.( a8 M6 Z8 b2 H% h
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. ) I1 S8 M5 e. K2 Z* K2 FAssume the following: " r9 g5 S; s8 c3 n g+ ?$ d- r = 0.06 (6 percent)0 T6 j2 T9 M: o! R: ]
- Interest is paid annually to the Lottery Corporation