Payments of 600, 200 and 400 are due at the ends of years 1, 3, and 5, respectively. Assume an annual effective rate of interest of 5% per year. (a) Find the point in time at which a single payment of...

Extracted text: Payments of 600, 200 and 400 are due at the ends of years 1, 3, and 5, respectively. Assume an annual effective rate of interest of 5% per year. (a) Find the point in time at which a single payment of 1200 would be equivalent. (b) Find the approximation to this point using the method of equated time.