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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 $2 million now.
: h8 {- N+ Y! u, `7 z; h; N1 Wa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize." Z# ]! k3 y% z4 o! _
Assume the following:
; [: h* G& E' c+ g* N( y- r = 0.06 (6 percent)
+ l; Q$ w7 U: c! \! {* }- Interest is paid annually to the Lottery Corporation |
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