A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $5,000 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 9% 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?