Problem $5-20$ Perpetuities $($LO$3)$

A local bank advertises the following deal: Pay us $$100$ at the end of each year for $11$ years and then we will pay you $($or your beneficiaries$)$ $$100$ at the end of each year forever.

a$.$ Calculate the present value of your payments to the bank if the interest rate available on other deposits is $6\mathrm{.}25\%.($Do not round intermediate calculations, Round your answer to $2$ decimal places.$)$

Present value

b$.$ What is the present value of a $$100$ perpetuity deferred for $11$ years if the interest rate available on other deposits is $6\mathrm{.}25\%.($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Present value

$

c$.$ Is this a good deal?

No

Yes