Xiang and Dmitry are friends. They agree that Xiang will pay Dmitry $800 immediately and another $200 at the end of three years. In return, Dmitry will pay $Xiang $K in exactly one year and again at the end of exactly two years. Find K if the transaction is based on compound interest in a nominal discount rate of 6% convertible monthly.

a. 533.89 b. 533.05 c. 517.09 d. 528.90 e. 403.73