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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 $2 million now.
( m7 z' A+ Y8 M3 u% n$ r/ B% u! Ma) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
$ D9 e4 r$ l0 B3 DAssume the following:- K2 m1 ^0 d' u1 ]
- r = 0.06 (6 percent)
& j9 ]$ O: W$ `, X# `- Interest is paid annually to the Lottery Corporation |
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