Eighty days ago, Emma was supposed to pay $870 to Regina. She also will owe Regina $1230 in 120 days. However, Emma is unable to pay these amounts; so instead, Regina has agreed to accept two equal payments due after three months and six months, respectively. If the interest rate is 1.25%, determine the size of the quarterly payments?
a. 1053.59
b. 701.89
c. 872.38
d. 1224.97
