Ralph buys a perpetuity-due paying 500 annually. He deposits the payments into a savings account earning interest at an effective annual rate of 10%. Ten years later, before receiving the eleventh payment, Ralph sells the remaining payments of the perpetuity based on an annual effective interest rate of 10%. Using the proceeds from the sale plus the money in the savings account, Ralph purchases an annuity-due paying X per year for 20 years at an effective annual interest rate of 10%. Calculate X. (a) 1145 (b) 1260 (c) 1385 (d) 1525 (e) 1675 A perpetuity pays 1 at the end of the first two years (i.e. at time t = 1 and t = 2), pays 2 at the end of the second two years (i.e. at time t = 3 and t = 4), 3 at the end of the third two years (i.e. at time t = 5 and t = 6), and so on. Assuming an annual effective interest rate of 8%, find the present value of the perpetuity. Give your answer rounded to the nearest whole number