Perpetuities

Imagine that the government decided to fund its current deficit of\$431

$431billion dollars by issuing a perpetuity offering a4\%

4%annual return. How much would the government have to pay bondholders each year in perpetuity? Express your answer in billions of dollars.

(Hint: The\$431

$431billion is just the present value of these cash flows at a discount rate of4\%

4%.)

*Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.