Problem 5-22 Perpetuities (LO3) A local bank advertises the following deal: "Pay us $100 at the end of each year for 12 years and then we will pay you (or your 10 beneficiaries) $100 at the end of each year forever." .

a. Calculate the present value of your payments to the bank if the interest rate is 4.75%. Note: 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 12 years if the interest rate is 4.75% ? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Present value ?