Question: Assingnment 3 Seved Help & Save & Exit Submit 7 A local bank advertises the following deal: Pay us $100 at the end of each

Assingnment 3 Seved Help & Save & Exit Submit 7 A

Assingnment 3 Seved Help & Save & Exit Submit 7 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 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 8.00%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 15 points Present value Skipped eBook b. What is the present value of a $100 perpetuity deferred for 12 years if the interest rate is 8.00% (Do not round intermediate calculations. Round your answer to 2 decimal places.) I lint Present value References c. Is this a good deal? O No Yes MC Graw Hill

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