The NewLife Insurance Company is offering an insurance policy that will give you and your offspring $$18,000$ per year forever.

a$.$ If you require $6\%$ return on investment then how much would you have to pay for the policy?

b$.$ If in part a$.$ above, the cost of the policy was $$250,000,$ what would you expect the interest rate to be for this to be a fair deal?

c$.$ You$$re considering getting a loan. Bank A charges $15\mathrm{.}5\%$ annually and Bank B charges $14\mathrm{.}9\%$ accrued semi$-$annually. Which bank has the lower effective rate of interest?

d$.$ Payments are made on a $15-$year annuity of $$1400$ at the end of each month. Calculate the present value if the interest rate is $11\%$ compounded monthly for the first $7$ years and $7$ percent compounded monthly thereafter.