Question: If money earns 6.8% compounded semi-annually, what two equal payments, one in 1 year and the other in 3 years, would be equivalent to: a.

If money earns 6.8% compounded semi-annually, what two equal payments, one in 1 year and the other in 3 years, would be equivalent to:

a. $7,500 today?

Round to the nearest cent

b. $4,000 due 1 year ago, but not paid, and $6,600 due 2 years ago, but not paid?

Round to the nearest cent

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