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Scheduled payments of $1400 due today and $1600 due with interest at 11.5% compounded annually in five years are to be replaced by two equal
Scheduled payments of $1400 due today and $1600 due with interest at 11.5% compounded annually in five years are to be replaced by two equal payments. The first replacement payment is due in 18 months and the second payment is due in 4 years. Determine the size of the two replacement payments if interest is 11% compounded quarterly and the focal date is 18 months from now.
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