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hello students in this video i will be solving two problems related to equivalent values the first problem say this scheduled payments of a thousand dollars due in nine months and 1200 dollars due in 18 months are to be replaced by a single payment three years from now determine the size of the replacement payment if money is worth 8.8 percent compounded quarterly so the first thing that im going to take into account is the interest so we have an interest that is a equal to 8.8 percent and besides this nominal rate of interest we know that this compound quarterly so n equals four there are four compound periods in a year of course i need to think in the time of one point at the beginning that is at this moment of time now and then i can start reading and try to understand the problem for example a scheduled payment of one thousands due in nine months so there is a thousands that is scheduled to be paid in nine months so im going to type here one thousand and this is nine months from
