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Q3: At an effective annual interest rate of I, i > 0, each of the following two sets of payments has present value K:

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Q3: At an effective annual interest rate of I, i > 0, each of the following two sets of payments has present value K: (i) A payment of $218 immediately and another payment of $218 at the end of two years. (ii) A payment of $400 at the end of three years and another payment of $400 at the end of five years. Calculate K.

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