You win $38,000 in the state lottery to be paid in two installments—$19,000 now and $19,000 one year from now. A friend offers you $36,000 in return for your two lottery payments. Instead of accepting your friend’s offer, you take out a one-year loan at an interest rate of 8.25% per year, compounded annually. The loan will be paid back by a single payment of $19,000 (your second lottery check) at the end of the year. Which is better, your friend’s offer or the loan?