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 $2 million now.# f7 ~3 J" G2 f. d/ E0 g
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.2 t S5 @. K( d$ K0 v
Assume the following: 8 L" o2 B( k& J7 h+ ~- r = 0.06 (6 percent) 2 X5 ^% E( [3 U* P) D- Interest is paid annually to the Lottery Corporation