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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./ J* _" T2 I# F- ^& ~7 D" f
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
- z! J4 n3 t, W# ^. y8 C3 D" yAssume the following:
- A( E; Y0 c( |- r = 0.06 (6 percent)
$ O3 x# V: R# n4 x* X- Interest is paid annually to the Lottery Corporation |
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发表于 2010-1-24 22:43
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