Determine the size of the two replacement payments

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Question - Scheduled payments of $1124 due one year ago and $332 due in five years are to be replaced by two equal payments. The first replacement payment is due in one year and the second payment is due in eight years.

Determine the size of the two replacement payments if interest is 4.1% compounded annually and the focal date is one year from now.

Reference no: EM132606706

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