How can you determine whether two payments are equivalent to each other?

• a. Calculate the future value of the earlier payment at the date of the later payment. If the future value is equal to the later payment, the two payments are equivalent.
• b. Calculate the present value of the later payment at the date of the earlier payment. If the present values are equal, the two payments are equivalent.
• c. Both a and b are correct
• d. Neither a or b are correct