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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 $2 million now.
8 M3 ~# R: l, G9 Ua) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
) o1 }+ A/ Y$ f9 I2 P2 ^! pAssume the following:
, B9 B' {- y# F" q3 j, M: x$ `- r = 0.06 (6 percent)1 q; F$ W0 o8 A$ g8 \" ?. n
- Interest is paid annually to the Lottery Corporation |
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