Two Payments of $850 and $600 Must Be Made Two

Multiple Choice

Two payments of $850 and $600 must be made two years and five years from now respectively. If money can earn 4% compounded semi-annually, what single payment, three years from now, would be equivalent to the two scheduled payments?

A) $1,477.16
B) $1,609.22
C) $15,783.88
D) $1,404.19
E) $1,438.65