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.( S0 X" x) t* r8 m( K7 Y/ V
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.0 N0 B% m8 g7 j& D v
Assume the following: " B) f5 g# d1 A& ~! L- r = 0.06 (6 percent) ! l+ m# P" m. K+ S9 P C6 ?# E/ o- Interest is paid annually to the Lottery Corporation