(please answer both questions)

At an annual effective rate of interest i=3%, find the PV of a perpetuity-immediate with annual payments of 30, 40, 50, 60,

a) 9520

b) 10800

c) 11254

d) 12111

e) 12500

Find the PV of a perpetuity-immediate with payments of 1 in year 1, 2 in year 2, 3 in year 3, ..., and 20 in year 20. After 20, the payments remain constant at 20. The annual effective rate of interest i = 4%.

a) 280.75

b) 319.14

c) 353.35

d) 427.01

e) 450.00