You can use the CF worksheet to save yourself some work:
CF0=0, plug in your cash flows for CF1 to CF6 and F01 to F06 are all 1. Go to NPV, enter 6 %/12 = 0.5 for I, solve for PV =11,790.232. To get FV on July 1, 11,790.232 * (1.0 05 )^6 = 12,148.39
Hi, I dont know if it is right way to calculate or not, but I found right answer. 1500*[(1.06)^1/12]+2000*[(1.06)^2/12]+2000*[(1.06)^3/12]+2500*[(1.06)^4/12]+3000*[(1.06)^5/12]+1000*[(1.06)^6/12]=1507.301326+2019.517588+2029.347692+2549.032056+3073.7275+1029.5630=12,208.48918. Then discount it value with 0.5%=(6%/12), because questions ask for 1 July value (begining of period), so 12208.48918/1.005=12147.75 round to 12148. May be I am wrong, but I tried do solve this way. Can you tell the source of the question if possible?
Credit interest from date of deposit for each deposit to July 1,e.g. the first deposit of $1,500 gets 5 months of interest, not 1. Also, there is no need to roll up the balance to July 31 and then discount by 1 month’s interest.
Interest rate: the rate is stated as 6% nominal, compounded monthly. Every month, interest =6%/12 * balance @ beginning of month balance. 1.06^(1/12) is not the same as (1 + 0.06/12), i.e. the former uses effective annual yield, whereas the latter uses a nominal rate compounded monthly.