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Working in the accounting department, Ariel has noticed that a customer is having trouble paying its bills. The customer has missed a payment of $2,980
Working in the accounting department, Ariel has noticed that a customer is having trouble paying its bills. The customer has missed a payment of $2,980 two years ago, $5,150 14 months ago, and $4,140 four months ago. The customer proposes making two payments instead. The first payment would be in six months and the second payment, one-quarter the size of the first payment, would be in 18 months. If the agreed-upon interest rate is 6.89% compounded monthly, what are the amounts of each payment?
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