(please answer both questions)

An annuity makes payments of 1000 at the beginning of every 7 years over 70 years at an effective annual interest rate of 4%. Find the present value of this annuity.

a) 3697

b) 3721

c) 3792

d) 3825

e) 3898

Consider a perpetuity with payments of 100 at the end of every 4 years, forever. The effective annual rate of interest is 3%. Find the PV of this perpetuity.

a) 728

b) 797

c) 815

d) 873

e) 998