Problem $2$

Kabir won a lottery and was given the following choices: He could either take $$5,000$ at the end

of each month for $25$ years, or a lump sum of $$1,000,000$ today. Assuming monthly

compounding at approximately what interest rate $($per year$)$ would he be indifferent between the

two choices? $($Show your calculations$-$suggestion: you can use financial calculator to solve this

problem, make sure to show your inputs