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Determine the size of the two replacement payments

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Reference no: EM131826392

Scheduled payments of ?$800 due in three months with interest at 2.8?% compounded quarterly and 1200 due in 27months with interest at 2.8?% compounded quarterly are to be replaced by two equal payments. The first replacement payment is due today and the second payment is due in four years. Determine the size of the two replacement payments if interest is 4?% compounded monthly and the focal date is today.

The size of the two replacement payments is ?$.

Reference no: EM131826392

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