Question: Two payments of $2000 each are scheduled for six months from now and two years from now. They are to be re-scheduled as follows: a

Two payments of $2000 each are scheduled for six months from now and two years from now. They are to be re-scheduled as follows: a payment one year from now and a second payment, half the size of the first payment, three years from now. What must the amount of each payment be for the replacement stream to be equivalent to the originally scheduled stream? Assume that money can earn 7.8% compounded semiannually.

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