Answer below two questions:

a. The ADC company has a $21,000 liability it must pay four years from today. The company is setting up an investment account so that the complete value of the liability will be available when this debt falls due. The plan is to make an initial deposit today and then deposit an additional $5,000 a year for the next four years, starting one year from today. The account pays a 2.2% rate of return. How much does the ADC company need to deposit today?

b. BD Company is offering Jack a policy that will pay him and his children $47,000 a year forever. The cost of the policy is $990,000. What is the rate of return on this policy?