A local bank will pay you $119 at the end of each year for your lifetime if you deposit $1,400 in the bank today. If you plan to live forever, what interest rate is the bank paying? (Enter your answers as a percent rounded to 2 decimal places.) Interest rate % What is the present value of the following cash-flow stream if the interest rate is 4%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Year 1 2 3 Cash Flow $240 440 340 ces Present value A property will provide $14,175 at the end of each year forever. If its value is $135,000, what must be the discount rate? (Enter your answers as a percent rounded to 2 decimal places.) Discount rate % First National Bank pays 6.4% interest compounded semiannually. Second National Bank pays 6% interest compounded monthly. a. Calculate the effective annual rate for each bank. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Effective Annual Rate % First National Bank Second National Bank % b. Which bank offers the higher effective annual rate? First National Bank Second National Bank