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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 $2 million now.9 p! j# S" u% D$ M
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.
( s$ n8 ]# W, S& s5 ^# ~Assume the following:
) t9 k4 O1 j0 S- r = 0.06 (6 percent)' w& R0 `0 [5 K O% p( t& o
- Interest is paid annually to the Lottery Corporation |
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