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. * F: a3 b/ M5 o/ m+ T0 Ra) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.4 G8 G. H9 }; x2 u; J
Assume the following: 5 _2 Y+ B# ^7 ?2 V9 S* `4 a. K- r = 0.06 (6 percent) ) _& z7 C+ s! y9 \+ S; g6 W' `- Interest is paid annually to the Lottery Corporation