Question: The answer is 20 Please show step by step and formulas used. Problem 54.6 A perpetuity pays 100 immediately. Each subsequent payment is increased by

The answer is 20 Please show step by step and formulas

The answer is 20

Please show step by step and formulas used.

Problem 54.6 A perpetuity pays 100 immediately. Each subsequent payment is increased by inflation. Calculate the duration of the perpetuity using 10.25% assuming that inflation will be 5% annually

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