A two-payment stream consisting of $1,750 due today and $2,900 due in 18 months is to be replaced by an economically equivalent stream comprised of an undetermined payment due in 9 months and a payment of $3,000 due in 19 months. Calculate the unknown replacement payment if money is worth 4.2% compounded monthly.

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The Answer of A two-payment stream consisting of $1,750 due today and $2,900 due in 18 months is to be replaced by an economically equivalent stream comprised of an undetermined payment due in 9 months and a payment of $3,000 due in 19 months. Calculate the unknown replacement payment if money is worth 4.2% compounded monthly.

A Two-Payment Stream Consisting of $1,750 Due Today and $2,900