Pflug Ltd. signed an instalment note on January 1, 2017 in settlement of an account payable of $40,000 owed to Mott Ltd. Pflug is able to borrow funds from its bank at 11%, whereas Mott can borrow at the rate of 10%. The note calls for two equal payments of blended principal and interest to be made at December 31, 2017 and 2018. Using time value of money tables, a financial calculator, and computer spreadsheet functions, calculate the amount of the equal instalment payments that will be made to Mott Ltd.