Correct Solution: (a)

Please show work and steps by hand. Thank you.

Problem 18.16 t An estate provides a perpetuity with payments of X at the end of each year. Seth, Susan, and Lori share the perpetuity such that Seth receives the payments of X for the first n years and Susan reccives the payments of X for the next m years, after which Lori receives all the remaining payments of X. Which of the following represents the difference between the present value of Seth's and Susan's payments using a constant rate of interest? (a) Xan "aml (c) Xlan -a (d) Xan va) (e) Xvan-la