You and a friend are saving money for a summer in Europe. You have been making

deposits into an interest$-$bearing account, so you can make $2$ withdrawals to pay for your tip. This

investment account provides an annual interest of $5\%,$ compounded semiannually. There is no

inter$-$period compounding.

How much money will you have at the end of $3$ years?

I recommend drawing the cash flow to help visualize the deposits and withdrawals.

Tip: Pay attention to when you should consider the deposits and withdrawals in the Cash Flows

considering the compounding period! $($See lecture $7$ notes and page $83$ in the textbook$)$