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Finding the Value of Two or More Equivalent Replacement Payments (2 Examples)
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Q1. Marc is due to make a payment of $1000 now. Instead, he negotiated to make two equal payments, one year and two years from now. Determine the size of the equal payments if money is worth 8% compounded quarterly.
Q2. What is the size of the equal payments that must be made at the end of each of the next five years to settle a debt of $5000 due in five years, if money is worth 9% p.a. compounded annually?
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