Youve just won the Im Feelin Lucky Sweepstakes!! They offer two payout choices: 1) $500,000 now OR 2) $40,000 at the end of every year for 25 years What interest rate have the sponsors assumed in structuring these alternatives?

Select one:

a. 6.24%

b. 6.51%

c. 8.00%

d. 5.87%