1. Philip has two outstanding payment for a loan that he gave his friend:$3650, due two months ago, and another payment of $900, due in eight months. If his friend promises to make one single payment in five months that would be equivalent to both of these payments, what should be the size of the payment? Assume that money earns 3% p.a.simple interest and use five months from now as the focal date.
2. A loan of $30,000 at 5% p.a.is to be settled with three equal installments in three months, six months and nine months. Calculate the size of the equal payments. Let the focal date be six months from now as the focal date.