1. A perpetuity consists of yearly increasing payments of (1 + r),(1 + r),(1 + r), ..., commencing at the end of the second year. At an annual effective interest rate of 4%, the present value of the perpetuity at time 0 is 49.0385. Determine r. 1. A perpetuity consists of yearly increasing payments of (1 + r),(1 + r),(1 + r), ..., commencing at the end of the second year. At an annual effective interest rate of 4%, the present value of the perpetuity at time 0 is 49.0385. Determine r