Sarah was supposed to make a payment of $4,500 in 1 year and another payment for $700 in 7 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 4 years. Assume that money is worth 3.11% compounded semi-annually.

a. Calculate the equivalent value of the $4,500 payment and the $700 payment today. Round to the nearest cent

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