The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $13,000 per year forever.

If the required return on this investment is 4.8 percent, how much will you pay for the policy? (Round your answer to 2 decimal places, e.g., 32.16.)

Present value

$

Suppose the Perpetual Life Insurance Co. told you the policy costs $280,000. At what interest rate would this be a fair deal? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Interest rate

%