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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 $2 million now.8 F$ Q: k; G% E0 q2 l" L; X+ f( q9 u$ p
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
/ I2 r, Q& g7 a7 B, {9 {Assume the following:# l; K5 Q" P5 r7 W$ h* c2 Z: w; _
- r = 0.06 (6 percent)$ I2 d& G' E! c% I
- Interest is paid annually to the Lottery Corporation |
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发表于 2010-1-24 22:43
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