A pension fund must pay out $1 million next year, $2 million the following year, and then $3 million the year after that. If the discount rate is 8%, what is the duration of this set of payments?

A) 2 years
B) 2.15 years
C) 2.29 years
D) 2.53 years

An increase in national saving reduces the interest rate and so reduces net capital outflow.