Maurice wants to purchase a home in six years. He will contribute $350 each month to a savings account with 2.12% interest, compounded semiannually. What is the future value of this investment, when Maurice needs to make a down payment?

First we need to find the semiannual payment because the interest rate is semiannually

350*6 months=2100

Now find the future value of an annuity ordinary using the formula of

Fv=pmt [ ((1+r/k) ^ (kn) - 1) : (r/k) ]

Fv future value?

PMT semiannual payment 2100

R interest rate 0.0212

K compounded semiannual 2

N time 6years

Fv=2,100 * (((1+0.0212:2) ^ (2*6)

-1) : (0.0212:2))

=26,722.33