Two Payments of $5,000 Are Scheduled Six Months and Three

question 16

Short Answer

Two payments of $5,000 are scheduled six months and three years from now. They are to be replaced by a payment of $3,000 in two years, a second payment in 42 months, and a third payment, twice as large as the second, in five years. What should the last two payments be if money is worth 9% compounded semi-annually?

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