Fiance question please help!

Question

please help with this question

$5,000 is deposited today into a bank account. The account earns 6.3% per annum compounded half yearly for the first 6 years, then 7.2% per annum compounded quarterly thereafter. Assuming no further deposits or withdrawals are made,

 

(a) Calculate the account balance six months from today.

 

Answer 1

FV= PV(1+r)^n

Future Value equals the present value multiplied by the interest rate factor (1+r)^n

PV= $5000

t or n is time which is now only 1 (only one six month period has been compounded)

r= yearly rate/2 (since is compounded semi-annually)=%6.3 or 6.3/100=.063 divided by 2 as I have inserted in the formula below and the 5 paranthesis is raised to the power One (since it is only one time has been compounded at the end of six month.

FV= 5000 (1+ .063/2)^1

FV =$ 5,157.5