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Scheduled payments of $600 due in nine months with interest at 6% compounded quarterly and $1100 due in 30 months with interest at 6% compounded
Scheduled payments of $600 due in nine months with interest at 6% compounded quarterly and $1100 due in 30 months with interest at 6% compounded quarterly are to be replaced by two equal payments. The first replacement payment is due today and the second payment is due in three years. Determine the size of the two replacement payments if interest is 6.7% compounded monthly and the focal date is today.
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