Please show ALL work for each problem.

18. A perpetuity will pay $1200 every two months beginning two months from today. If the interest rate is 8% EAR, which of the following is closest to the PV of this perpetuity? A) $30,588 B) $90,000 C) $92,955 D) $93,258 19. You are sick of the snow and have decided to move to Florida where you hope that you will no longer need your snow blower. Your neighbor has offered to buy it from you and has offered you 3 alternatives. If the interest rate is 8%, which of the following alternatives would you prefer? A) One payment of $800 today B) Two payments of $517 paid 3 years from today and 4 years from today C) Three annual payments of $290 beginning today 20. You have borrowed $10,000 to buy a Boston Whaler. The loan is a 3 year loan with monthly payments and an interest rate of 6% APR. How much interest will you pay in the first month? A) $50.00 B) $51.40 C) $304.22 D) $600.00