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."

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.

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.

Is this a good deal?

multiple choice

Yes

No