Payments of $4,000 and $3,500 Were Originally Scheduled to Be

Multiple Choice

Payments of $4,000 and $3,500 were originally scheduled to be paid two years and 4 years from today. They are to be replaced by a $5,000 payment 3 years from today and anther payment in 6 years. Determine the value of the final payment if interest is 4% compounded quarterly.

A) $2,752.46
B) $2,846.18
C) $2,917.67
D) $3,182.07
E) $3,478.22