Sandy purchases a perpetuity-immediate that makes annual payments. The first payment is 100, and each payment thereafter increases by 10. Danny purchases a perpetuity-due which makes annual payments of 180. Using the same effective interest rate, i>0, the present value of both perpetuities are equal. Calculate i.
This is from the Study Manual for Exam FM/Exam 2 Eleventh Edition Section 4h and 4i number 3. This whole section has been very confusing for me and I don't quite understand the reasoning. The provided answer provided is 10.2%. If anyone could help me out I would really appreciate it!