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 $2 million now. ( C1 c; u% _8 G# Ea) Calculate the amount of money that the Alberta Lottery Corporation must keep in the bank to be able to pay the weekly prize.7 j* N0 Q9 J: _4 S& p
Assume the following:* S1 p ~) w. X% h
- r = 0.06 (6 percent) " n* a2 [$ G% ]3 f* ^3 m! t& D4 J5 d2 p- Interest is paid annually to the Lottery Corporation