An $18,000 Obligation Is to Be Repaid by Two Payments

Multiple Choice

An $18,000 obligation is to be repaid by two payments. The first payment is six months from now, while the second is 18 months from now. In addition, the second payment will be half the amount of the first. Interest is 5.15% compounded semi-annually. Using the financial functions on the calculator, determine the size of each payment.

A) Payment #1 = $12,516; Payment #2 = $6,258
B) Payment #1 = $10,440; Payment #2 = $5,220
C) Payment #1 = $11,000; Payment #2 = $5,500
D) Payment #1 = $12,000; Payment #2 = $6,000
E) Payment #1 = $6,000; Payment #2 = $18,000