$9.$ Calculating a perpetuity Value

Curly's Life Insurance Co$.$ is trying to sell you an investment policy that will pay you and your heirs $$30,000$ per year forever. If the required return on this investment is $5$ percent, how much will you pay for the policy?

$10.$ Calculating a perpetuity's discount rate

In the previous problem, suppose Curly's told you the policy costs $$645,000.$ At what interest rate would this be a fair deal?