A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be

$4,000.

Each year after that, you will receive a payment on the anniversary of the last payment that is

2%

larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is

11%

per year.

a. What is today's value of the bequest?

b. What is the value of the bequest immediately after the first payment is made?