1. Your friend was supposed to repay a loan with a loan payment of $1,300 due in 6 months and another loan payment of $1,800 due in 3 years. However, your friend agrees to make two payments that replace the originally scheduled payments. The first replacement payment of $X is due in 2 years and the second replacement payment of $2,000 is due in 5 years. Suppose the interest is 3.2% p.a. compounded quarterly and the focal date is 2 years from now (Year 2), your friend asks for your help to determine the size of the second replacement payment, $X. Answer the following question:
If the focal date is at year 2, what is the size of the equivalent single loan amount based on original loan payments? (Express in at least 6 decimal places)
2.
Your friend was supposed to repay a loan with a loan payment of $1,300 due in 6 months and another loan payment of $1,800 due in 3 years. However, your friend agrees to make two payments that replace the originally scheduled payments. The first replacement payment of $X is due in 2 years and the second replacement payment of $2,000 is due in 5 years. Suppose the interest is 3.2% p.a. compounded quarterly and the focal date is 2 years from now (Year 2), your friend asks for your help to determine the size of the second replacement payment, $X. Answer the following question:
Your answer for $X at the focal date is $Answer. (Express in 2 decimals)
