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hello students in this video i will continue to speak about equivalent values in this case i will be solving problems related to equivalent equal replacement payments this will be the first exercise and as always im going to explain how to solve a problem like this using a problem and actual problems and the problems were going to solve is this scheduled payments of 800 due two years ago and one thousand due in five years are to be replaced by two equal payments so these two equal payments are going to replace these two payments so they need to be equivalent to these two payments the first replacement payment is due in four years and the second payment is due in eight years determine the size of the two replacement payments if interest is 12 percent compounded semi-annually and the focal date is a year from now for solving a problem like this you will need to take into account of course the interest and this problem say that the interest is 12 percent this is the nominal rate of inte