Question: Please show your work with formulas and not charts. Ralph buys a perpetuity-due paying 500 annually. He deposits the payments into a savings account earning

Please show your work with formulas and not charts.

Ralph buys a perpetuity-due paying 500 annually. He deposits the payments into a savings account earning interest at an effective annual rate of 7%. Fifteen years later, before receiving the sixteenth payment, Ralph sells the perpetuity based on an effective annual interest rate of 7%. Using the proceeds from the sale plus the money in the savings account, Ralph purchases an annuity-due paying X per year for 10 years at an effective annual rate of 7%. Calculate X. (Al $2 200 (R1 $ 400 (0) $200 (Di $ 800 (F) $2000

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