1. Assume you will receive $17,550 beginning next year. After next year, your payments will grow 2.3% each year. Further assume that this payment will last theoretically forever. What will be the present value of this perpetuity if the interest rate is 11.5% and it compounds annually?

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2. Let's say there is an investment product whose Annual Percentage Rate (APR) is 15%. If this investment product compounds semiannually, what will be the Effective Annual Interest Rate?

How would your answer change if the interest rate compounds monthly?