The Perpetual Life Insurance Company is trying to sell you an investment policy that will pay you and your heirs $13,500 per year forever

a) If the required return on investment is 4.9%, how much will you pay for the policy? (round answer to two decimal places)

b) Suppose the Perpetual Life Insurance Company told you the policy cost $290,000. At what discount rate would this be a fair deal? (please answer as a percent rounded to two decimal places)