4.10

a. Given an interest rate of 10 percent per year, what is the value at date t = 9 of a perpetual stream of $500 payments that begin at date t = 15? b. You have been paying $100 into an account each month for 7 years. The account has an EAR of 8.35% with monthly compounding. How much is in the account at the end of the seven years?