A company has to meet liability payments at the end of each of the next $25$ years. The payment at the end of the first year is $1\mathrm{.}2$ million. Thereafter, the payments are expected to increase at a fixed rate of $4\mathrm{.}3902\%$ p$.$a$.$ compound.

$($i$)$ Calculate, showing all working, the duration of the company's liabilities using an effective rate of interest of $7\%$ p$.$a$.$

$6$

The rate at which payments are expected to increase has been revised, and is now greater than $4\mathrm{.}3902\%$ p$.$a$.$

$($ii$)$ Identify, with reasons, whether your answer to part $($i$)$ will increase, decrease or remain unchanged. Do not perform further calculations.

$[3]$

$[$Total $9]$