This is a Mathematics of Investment question: Smith lends Jones 1000 on January 1, 2007 on the condition that Jones repay 100 on January 1,2008, 100 on January 1, 2009 , and 1000 on January 1,2010. On July 1,2008, Smith sells to Brown the rights to the remaining payments for 1000, so jones makes all future payments to Brown. Let j be the 6- month rate earned on Smith's net transaction, and let k be the 6-month rate earned Brown's net transaction. Are j and k equal?,which is larger?

Please show your work.