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A local bank advertises the following deal: Pay us $100 at the end of each year for 10 years and then we will pay you

image text in transcribed A local bank advertises the following deal: "Pay us $100 at the end of each year for 10 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever." a. Calculate the present value of your payments to the bank if the interest rate is 6%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the present value of a $100 perpetuity deferred for 10 years if the interest rate is 6% ? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Present value c. Is this a good deal? Yes No

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