Question: 4. (10 points) Charities A and B split a level perpetuity immediate with annual payments of X. A receives the first set of n payments,

4. (10 points) Charities A and B split a level perpetuity

4. (10 points) Charities A and B split a level perpetuity immediate with annual payments of X. A receives the first set of n payments, the third set of n payments, the fifth set of n payments and so on. B receives all of the other payments. In other words, A receives the odd numbered set of payments, and B receives the even numbered set of payments. If the annual effective rate is 3.14159%, the proportion of the total present value held by A is 0.642 841 343 5. What is the proportion of the total present value held by B if the annual effective rate is 8%

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