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4. (20 points) An n year deferred perpetuity due consists of annual payments. The first payment is 100,000. Each subsequent payment is 1% less than

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4. (20 points) An n year deferred perpetuity due consists of annual payments. The first payment is 100,000. Each subsequent payment is 1% less than the payment before. If the annual effective interest rate is 9.8%, the present value of the perpetuity is 118,392.6556. What would the annual effective interest rate have to be in order for the present value to be equal to 120,000

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