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 $2 million now.+ V! K' X# u+ D6 v
a) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.) g. `* r' h+ s2 p2 Z) h
Assume the following:2 s# M$ u7 N5 y: L$ b5 p
- r = 0.06 (6 percent) - D& r+ W) t' L8 u& `- Interest is paid annually to the Lottery Corporation