Sandra has just won a lottery. She will receive a payment of $9,200 at the end of each year for 9 years. As an alternative, she can choose an immediate payment of $40,000.

Which alternative should she pick if the interest rate is 4 percent?

Sandra should pick

(Choose your answer here) Immediate payment or Payment at the end of each year

What would the interest rate have to be for Sandra to be indifferent about the two alternatives? (Round answer to 4 decimal places. Do not round your intermediate calculations.)

Interest rate

Type your answer here

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