19. The first payment of a perpetuity-immediate is 38. Subsequent payments decrease by 1 per year until they reach a level of k. Payments remain constant at k thereafter. The present value of the perpetuity is equal to the present value of a perpetuity- immediate paying 30.53 each year. The annual effective interest rate is 12%. Calculate k. [Hint: take a decreasing annuity as a level annuity minus an increasing annuity] 19. The first payment of a perpetuity-immediate is 38. Subsequent payments decrease by 1 per year until they reach a level of k. Payments remain constant at k thereafter. The present value of the perpetuity is equal to the present value of a perpetuity- immediate paying 30.53 each year. The annual effective interest rate is 12%. Calculate k. [Hint: take a decreasing annuity as a level annuity minus an increasing annuity]