10. Calculating Perpetuity Values [LO1] The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $35,000 per year forever. If the required return on this investment is 4.7 percent, how much will you pay for the policy? (THIS QUESTION DOES NOT NEED TO BE ANSWERED, ONLY ON HERE TO HELP ANSWER #11)

11. Calculating Perpetuity Values [LO1] In the previous problem, suppose a sales associate told you the policy costs $800,000. At what interest rate would this be a fair deal?

31. Calculating Interest Expense [LO2] You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 1.25 percent per year, compounded monthly for the first six months, increasing thereafter to 17.8 percent compounded monthly. Assuming you transfer the $8,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year?