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. 4. (a) 1145 (b) 1260 (c) 1385 (d) 1525 (e) 1675