At a nominal interest rate compounded quarterly, k, the following payment structures have the same present value:

• A payment of $600 at the end of three years plus a payment of $1,000 at the end of six years
• One payment of $1,400 at the end of three years

Find k.

1. 7.5%

2. 7.2%

3. 6.8%

4. 6.4%

5. 6.1%