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 $2 million now.$ d7 c6 z# p+ N3 W" \
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize./ f% E% @ E. U& W# R2 L$ I
Assume the following:% \3 j4 G v4 ^( l* y" p! I
- r = 0.06 (6 percent) 2 I5 X8 A/ R& s' L) L' T- Interest is paid annually to the Lottery Corporation