Miquel was supposed to make three payments of $2,000 each-the first one year ago, the second one year from now, and the third three years from now. He missed the first payment and proposes to pay $3,000 today and a second amount in two years. If money can earn 4.5% compounded semi-annually, what must the second payment be to make the proposed payments equivalent to the scheduled payments?

Compounded Semi-annually

Interest on an investment is calculated twice a year and added to the principal, allowing the investment to grow faster than if it were compounded annually.

Proposed Payments

Suggested or planned amounts to be paid as part of a financial agreement or loan repayment schedule.

Scheduled Payments

Predetermined payments made over a specified period of time as part of the terms of a loan or mortgage.