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. % }2 Q: L2 s# {a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. 8 P+ A" l! Y; LAssume the following:9 o) z& K& ^* [# j: {' \/ w
- r = 0.06 (6 percent). L5 Q( [4 z) w6 c+ T
- Interest is paid annually to the Lottery Corporation