Equation 2: P(T* + T) = P(T*)F(T*,T); we need to solve for F(1,1).

P(1) = 1/(1 + 0.0225)^{1} and P(2) = 1/(1 + 0.0270)^{2},

F(1,1) = P(2)/P(1) = 0.9481/0.9780 = 0.9694.

How do i know whether to divide P(2) over P(1) or multiply them?

Equation 2: P(T* + T) = P(T*)F(T*,T); we need to solve for F(1,1).

P(1) = 1/(1 + 0.0225)^{1} and P(2) = 1/(1 + 0.0270)^{2},

F(1,1) = P(2)/P(1) = 0.9481/0.9780 = 0.9694.

How do i know whether to divide P(2) over P(1) or multiply them?

p_{1} * F_{(1,1)} = p_{2}

so you know which direction you need to go…