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. $ h4 C! s! T/ p1 y& z) Ia) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. ' Q2 h |" O: o# K! {* A [4 G# d/ O+ BAssume the following:$ ~& H4 D5 i% `7 L' T3 m
- r = 0.06 (6 percent) + c H# y4 N7 Y. Y- Interest is paid annually to the Lottery Corporation