1. Alicia was supposed to pay Laura $3,800, 6 months ago, and $1,320, 5 months from now. If she wants to reschedule these payments with two payments, one payment of $4,000 today and the balance 3 months from now, calculate the balance amount. Assume that the simple interest charged is 5.50% p.a. and the agreed focal date is 3 months from now.

2. Tabitha had to pay her friend $800, 4 months ago and she has to pay $680 in 3 months. If her friend was charging her an interest rate of 1.00% per month, what single payment would settle both payments today?