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?
p1 * F(1,1) = p2
so you know which direction you need to go…