Compound Interest Problem

[neomah]

Hello, i've been trying to solve this problem:

Payments of $1300 due today and $1800 due in 1 3/4 years from today are to be replaced by a single payment 4 years from now. What is the amount of that payment if money is worth 6% compounded quarterly?

The answer is: $3707.78.

I keep getting wrong answers. Can anyone please help me? Thank you!

----

What I try to do:

FV = 1800 (1.015)^7
=1997.72

FV = 1997 (1.015)^9
=2284.17

2284.17 + 1300 = 3584.17

Please help! Thank you!

 

[jonah2.0]

WARNING: Beer soaked rambling/opinion/observation ahead. Read at your own risk. Not to be taken seriously. In no event shall Sir jonah in his inebriated state be liable to anyone for special, collateral, incidental, or consequential damages in connection with or arising out of the use of his beer (and tequila) powered views.

Hello, i've been trying to solve this problem:

Payments of $1300 due today and $1800 due in 1 3/4 years from today are to be replaced by a single payment 4 years from now. What is the amount of that payment if money is worth 6% compounded quarterly?

The answer is: $3707.78.

I keep getting wrong answers. Can anyone please help me? Thank you!

----

What I try to do:

FV = 1800 (1.015)^7
=1997.72

1.75 years to the end of the 4th year is 2.25 years or 9 quarters (2.25*4).
Thus 1800 (1.015)^9

FV = 1997 (1.015)^9
=2284.17

2284.17 + 1300 = 3584.17

Please help! Thank you!

"Today" to the end of the 4th year is how many quarters?
Thus 1300(1.015)^?
Let x be the single payment 4 years from now and x is the sum of those 2 expressions.

 

[neomah]

WARNING: Beer soaked rambling/opinion/observation ahead. Read at your own risk. Not to be taken seriously. In no event shall Sir jonah in his inebriated state be liable to anyone for special, collateral, incidental, or consequential damages in connection with or arising out of the use of his beer (and tequila) powered views.

1.75 years to the end of the 4th year is 2.25 years or 9 quarters (2.25*4).
Thus 1800 (1.015)^9

"Today" to the end of the 4th year is how many quarters?
Thus 1300(1.015)^?
Let x be the single payment 4 years from now and x is the sum of those 2 expressions.

Got it. Thanks so much!!