Payments of $2,300 Due 18 Months Ago and $3,100 Due

question 82

Short Answer

Payments of $2,300 due 18 months ago and $3,100 due in three years are to be replaced by an equivalent stream of payments consisting of $2,000 today and two equal payments due two and four years from now. If money can earn 4.75% compounded semi-annually, what should be the amount of each of these two payments?

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Definitions:

g-Aminobutyric Acid (GABA)

A neurotransmitter in the brain that plays a key role in regulating neuronal excitability and muscle tone.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, also implicated in mood regulation.

Acetylcholine

A neurotransmitter in the brain involved in memory and muscle movement.