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 $2 million now. 8 ]' q* T" G# N* X4 m! [: Xa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.8 i! z( `6 L- m2 b6 L$ x& x/ s
Assume the following:2 O$ J- n% v: V1 |6 L
- r = 0.06 (6 percent) 0 ^; Q6 M1 e5 h7 P- Interest is paid annually to the Lottery Corporation