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 $2 million now.$ S" o4 Y; E3 y" p0 F3 l$ {" e; f
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize. - L$ f) \4 f: [+ LAssume the following:0 X: F: o3 E \- A% {1 ~* t' O1 U
- r = 0.06 (6 percent)2 e1 u4 R A. ~- e
- Interest is paid annually to the Lottery Corporation