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The following two investment options are given. Investment A is a perpetuity-immediate paying an annual payment of 1. Investment B is a perpetuity-immediate paying an

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The following two investment options are given. Investment A is a perpetuity-immediate paying an annual payment of 1. Investment B is a perpetuity-immediate paying an annual payment starting with 1 and having each successive payment increase 5% from the previous payment. The annual interest rate is 10% effective. Find the sum of the durations of the two investments. Give your answer as a whole number. (a) 11 (b) 22 (c) 33 (d) 44 (e) No Answer The following two investment options are given. Investment A is a perpetuity-immediate paying an annual payment of 1. Investment B is a perpetuity-immediate paying an annual payment starting with 1 and having each successive payment increase 5% from the previous payment. The annual interest rate is 10% effective. Find the sum of the durations of the two investments. Give your answer as a whole number. (a) 11 (b) 22 (c) 33 (d) 44 (e) No

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