Let A be "how much you need to invest now", in dollars.



After 5 years, this amount will grow up to

     =  = 1.249203*A  dollars.



After next 7 years, this amount of  1.249203*A  dollars will grow up to

     =  = 1.249203*A*1.5125897 = 1.889532*A dollars.


Your equation to find A is

    1.889532*A = 120000  dollars.


From this equation, you find  A =  = 63507.79  dollars.


ANSWER.  You should invest  $63507.79  dollars now.

You wish to purchased a house for $120,000 in 12 years. You can invest your money at 4.5%/a compounded semiannually for the first 5 years and then you can get 6%/a compounded semiannually for the next 7 years. How much do you need to invest now? (Hint: start with the last 7 years) HELPPPPPPP PLZ

In 12 years' time, you'll need $120,000. Seven years before the 12th year, or 5 years from now, the amount (Present Value) that
needs to be invested then. to accummulate $120,000, or 

Twelve years before the 12th year, or NOW, you need the amount (Present Value) that needs to be invested in order to accummulate
the $79,334.14, 5 years later. We then get: Amount needed to invest NOW, in order to accummulate the $79,334.14
in 5 years' time, or