Melissa was supposed to make a payment of $2,750 in 2 years and another payment for $1,200 in 6 years to Maroon Inc. as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would settle both payments in 5 years. Assume that money is worth 3.47% compounded semi-annually.

a. Calculate the equivalent value of the $2,750 payment and the $1,200 payment today.

b. Calculate the size of the payment required in 5 years to settle the amount.