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Assume the rate of interest is 8 % . How much would you need to set aside to provide each of the following? a .

Assume the rate of interest is 8%. How much would you need to set aside to provide each of the following?
a. $1 billion at the end of each year in perpetuity. (Enter your answer in billions rounded to 1 decimal place.)
b. A perpetuity that pays $1 billion at the end of the first year and that grows at 4% a year. (Enter your answer in billions rounded to 1
decimal place.)
c. $1 billion at the end of each year for 20 years. (Do not round intermediate calculations. Enter your answer in billions rounded to
decimal places.)
d. $1 billion a year spread evenly over 20 years. (Do not round intermediate calculations. Enter your answer in billions rounded to
decimal places.)
Answer is complete but not entirely correct.
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