What is the future value if the payments are invested with the first national bank which offers semiannual compounding?

The problem is missing some details. But here is the complete solution. Now consider the second alternative-5 annual payments of $2,000 each. Assume that the payments are made at the starting of each year.

N = 5

I = 10.25

---> this is computed by: [ (1+i/n) ^n] - 1I = [ (1+10/2) ^2] - 1 = 10.25

PV = O

PMT = - 2,000

Using a financial calculator ...

Future Value = 13, 528.90