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 available on other deposits is 9.00%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value

$

b.	What is the present value of a $100 perpetuity deferred for 11 years if the interest rate available on other deposits is 9.00%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value

$