(Present value of a growingperpetuity)What is the present value of a perpetual stream of cash flows that pays $7,000 at the end of year one and the annual cash flows grow at a rate of 3% per yearindefinitely, if the appropriate discount rate is 14%? What if the appropriate discount rate is 12%?

a.If the appropriate discount rate is 14% the present value of the growing perpetuity is$

_____(Round to the nearestcent.)