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 $2 million now.: I- ^( ^( G- ?# J& e9 D
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. 7 ^ p2 T3 W7 V! M& p) w* xAssume the following: ! c- I* Q$ f% c( R- r = 0.06 (6 percent)% I. G3 T4 m) P
- Interest is paid annually to the Lottery Corporation