Question: Dwayne has two debts: ( i ) a debt of $ 1 8 0 0 which was due eight months ago. ( ii ) a
Dwayne has two debts:
i a debt of $ which was due eight months ago.
ii a debt arising from a loan for $ that he took out one year ago for a term of three years with interest at compounded annually.
Dwayne intends to settle both debts by making two equal payments. The first payment is to be made today, and the second payment is due nine months from today. What is the size of the equal payments if money is worth compounded monthly? Use nine months from today as the focal date.
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