At an effective annual interest rate of ii, i > 0, each of the following two sets of payments has present value K: i) A payment of 121 immediately and another payment of 121 at the end of one year.
ii) A payment of 144 at the end of two years and another payment of 144 at the end of three years.
Calculate K.
a) 1/7.
b) 1/8.
c. 1/9.
d. 1/10.
e. 1/11.