Question: Compute manually and show complete solutions. April purchases a perpetuity-immediate that makes annual payments. The first payment is 100, and each payment thereafter increases by

Compute manually and show complete solutions.

April purchases a perpetuity-immediate that makes annual payments. The first payment is 100, and each payment thereafter increases by 10. Pamela buys a perpetuity-due which makes annual payments of 180. Using the same annual effective interest rate, i > 0, the present value of both perpetuities are equal. Calculate i.

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