Scheduled payments of $1163 due three years ago and $1278 due in four years are to be replaced by two equal payments. The first replacement payment is due in two years and the second payment is due in seven years. Determine the size of the two replacement payments if interest is 2% compounded semi-annually and the focal date is two years from now.

Answer rating: 100% (QA)

1 Replacement Payments Calculation The present value PV of the scheduled payment due three years ago ... View the full answer