The 16 year annuity-immediate A pays 100 in the first year and increases by 4% annually thereafter. The 16 year annuity immediate B pays X in the first year and then decreases by 2% each year thereafter. At an effective annual interest rate of 5%, both annuities have the same present value. Compute X.

1. (15 points) The 16-year annuity-immediate A pays 100 in the first year and increases by 4% annually thereafter. The 16-year annuity-immediate B pays X in the first year and then decreases by 2% each year thereafter. At an effective annual interest rate of 5%, both annuities have the same present value. Compute X