The present value of a perpetuity paying 1 every two years with first payment due immediately is 7.21 at an annual effective rate of i.

Another perpetuity paying R every three years with the first payment due at the beginning of year two has the same present value at an annual effective rate of i + 0.01.

Calculate R.

(A) 1.23

(B) 1.56

(C) 1.60

(D) 1.74

(E) 1.94

My approach:

Since the first payment is at t=2, I want the perpetuity formula to be at t=0 or t=3. I chose t=3.

What did I do wrong?

Edit: Answer is D