The scheduled payment stream consists of $5000 due today and $10,000 due in five years. It is

Question:

The scheduled payment stream consists of $5000 due today and $10,000 due in five years. It is proposed to replace this stream by an economically equivalent stream comprised of three equal payments due one, three, and five years from now. Determine the size of each payment if money is worth 5% compounded annually.