2. Eileen buys a perpetuity-immediate with annual payments for a price of 100. The first payment is X, the 2nd payment is 4% greater than the first, the third payment is 4% less than the second, the fourth payment is 4% greater than the third, the fifth payment is 4% less than the fourth, and so on, with the change in future payments alternating between a 4% increase and a 4% decrease from the previous payments. Eileen?s effective annual interest rate is 6%. Determine X. Hint: I thought of the even-year payments and odd-year payments separately. (a) 9.45 (b) 9.09 (c) 8.41 (d) 6.13 (e) 5.96 Answer: 2. Eileen buys a perpetuity-immediate with annual payments for a price of 100. The first payment is X, the 2nd payment is 4% greater than the first, the third payment is 4% less than the second, the fourth payment is 4% greater than the third, the fifth payment is 4% less than the fourth, and so on, with the change in future payments alternating between a 4% increase and a 4% decrease from the previous payments. Eileen?s effective annual interest rate is 6%. Determine X. Hint: I thought of the even-year payments and odd-year payments separately. (a) 9.45 (b) 9.09 (c) 8.41 (d) 6.13 (e) 5.96