A scheduled payment of $4,000 due in one year is to be replaced with two payments: the first due in 7 months and the second due in 16 months. Calculate the size of the two payments if the second payment is to be twice as large as the first payment, and money can earn 9% compounded monthly.

First payment:

Second payment:

Answer rating: 100% (QA)

To calculate the size of the two payments we can use the concept of present value and future value ... View the full answer