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 $2 million now. 4 l/ |3 h6 t5 ~" e% c; qa) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.9 u' s# G4 K' o3 l
Assume the following:& d- w) H* u( x; `* H. i( d
- r = 0.06 (6 percent) 1 d" g$ d7 E% a D- Interest is paid annually to the Lottery Corporation