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3. Harriet spends $59,746 on a perpetuity that makes payments at the end of each year. The perpetuity pays $500 at the end of year
3. Harriet spends $59,746 on a perpetuity that makes payments at the end of each year. The perpetuity pays $500 at the end of year 1, $1,000 at the end of year 2, and $500 n at the end of year n. After year n, the payments are to remain constant at $500 n. The annual effective interest rate is 6.78%. What is the largest n can be? (A) 10 (B) 11 (C) 12 (D) 13 (E) 14
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