Answer the following question from the previous chapters:

a. Suppose the Dutch Water Authority wanted to raise money by selling perpetuities of $146 per year, with the first cash flow paid in one year from today. If the appropriate discount rate is 5.3%, what would you be willing to pay today for this perpetuity? Round to the nearest cent.

b. Starting at the end of this year, you plan to make annual deposits of $6,000 for the next 10 years (years 1 through 10) followed by deposits of $11,000 for the following 10 years (years 11 through 20). The deposits earn interest of 5.7%. What will the account balance be by the end of 29 years? Round to the nearest cent. [Hint: There are two annuities. Convert them to single cash flows using the FV annuity formula, then move the values to the end of year 29.]