A local bank advertises the following deal: "Pay us $100 at the end of each year for 11 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 8.50%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is the present value of a $100 perpetuity deferred for 11 years if the interest rate is 8.50%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. Is this a good deal? Yes or no.