A. You are buying a perpetuity for your retirement by investing $1,000,000 when interest rates are 7% per year. What will your annual income or cash flow be from this perpetuity?

B. Alternatively, how much would the perpetuity cost if you are told that it will pay you the annual income you have determined above, with the same discount rate as above too, and an annual growth rate of 2%?

please show work, not on excel.