Alysha has just won a lottery. She will receive a payment of $8,300 at the end of each year for 9 years. As an alternative, she can choose an immediate payment of $55,000.

Which alternative should she pick if the interest rate is 4 percent? (Immediate payment or payment at the end of each year)

What would the interest rate have to be for Alysha to be indifferent about the two alternatives?