1. The Present value of a perpetuity-immediate with a first payment of 5 and with subsequent payments increasing by 4 each year is 600. Determine the annual effective rate i. 2. The following payments are to be received: $500 at the end of the first year, $520 at the end of the second year, $540 at the end of the third year and so on, until the final payment is $800. Using an annual effective interest rate of 2%. Determine the accumulated value of these payments at the time of the last payment. (A) 11,860 (B) 11,960 (C) 12,000 (D) 12,020 (E) 12,040