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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 $2 million now.$ j4 E) N. f, L8 N& ~. 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.
% u0 [! I" H* p ~Assume the following:
, |; E5 E: I' [) ?; `- r = 0.06 (6 percent)
1 Q& M7 ^' x5 b* A! p5 a: V- Interest is paid annually to the Lottery Corporation |
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