Matthew was supposed to make a payment of $3,750 in 1 year and another payment for $1,200 in 7 years to Maroon Inc. as part of a payment plan. Instead, he is trying to reach an agreement with the company where he would settle both payments in 4 years. Assume that money is worth 3.74% compounded semi-annually.

a. Calculate the equivalent value of the $3,750 payment and the $1,200 payment today.

b. b. Calculate the size of the payment required in 4 years to settle the amount.