1. A perpetuity pays $90 per year and costs $976. What is the rate of return? (Round your answer to 2 decimal places.)

2. Suppose you just won the state lottery, and you have a choice between receiving $2,600,000 today or a 25-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. (Round your answer to 2 decimal places.)

3. What annual payment must you receive in order to earn a 8% rate of return on a perpetuity that has a cost of $1,400? (Round your answer to the nearest whole number.)