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Payments of $5,000 and $7,000 Are Due Three and Five

Question 57

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Payments of $5,000 and $7,000 are due three and five years from today. They are to be replaced by two payments due 1½ and four years from today. The first payment is to be half the amount of the second payment. What should the payments be if money can earn 7.5% compounded semi-annually?

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The replacement paym...

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