1) Johny owes two debt payments - a payment of $5000 due in 6 months and a payment of $6000 due in 15 months. If johny makes a payment of $5000 now, when should he make a second payment of $6000 if money is worth 11% compounded semi-anually?
2) Sasha promised to pay $3000 in 2.5 years and $5000 in 5 years. If she replaces those payments with a payment of $4000 in 4 years and 3 months, and money is worth 10% compounded quarterly, when should she make the second payment of $6000?
Please help me out with these 2 questions. Thank you!
