New legislation has been passed in America that makes college tuition-free for the 3 subsequent years. This means that the USA has now incurred a liability of $1 billion per year for 3 years, starting exactly one year from today. What is the duration of the USA's liability for the college tuition (in years)? Assume a discount rate of 8% per year. Choose the closest answer.

• 8.3
• 2.5
• 2.0
• 3.7
• 0.5