1. Answer the following questions relating to perpetuities.
   1. Define a perpetuity (2 pts.)

2. Find the present value of a level perpetuity with a payment of $500 per year and a yearly interest rate of 6%. (3 pts.)

3. Find the present value of a growth perpetuity with a payment of $300 per year, a growth rate of 3%, and an interest rate of 7%. (3 pts.)