Question: Please lead me in the right direction, I keep getting this wrong, please help Your financial planner offers you two different investment plans. Plan X

Please lead me in the right direction, I keep getting this wrong, please help

Your financial planner offers you two different investment plans. Plan X is a $22,000 annual perpetuity. Plan Y is a 10-year, $28,000 annual annuity. Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans?

Discount Rate ___________ %

My formula which is incorrect :

Future value of perpetuity = Annual cash flow / r = 22000/r

Future value of annuity = Annuity * [(1+r)^n - 1]/r = 28000 * [(1+r)^10 - 1]/r

22000 / r = 28000 * [(1+r)^10 - 1]/r

Solving this for r, Iget r = 5.9696% or 5.97%... Connect says this is incorrect

Please help

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