Faqueen of ome unding of omyounding can have asianificant oft on the overal
iting diferent impo dina per deper dive by calculating the AY of the same situation
Scenario: Alonso bought a $3,000 gaming computer using his credit card. A special financing offer allows him to make no payments for 2 years but interest will still accrue at a rate of 16.92% APR and be added to the bill if he doesn't pay full balance in 2 years.
1. Use the compound interest formula to calculate Alonso's balance after 2 years using each compounding period, assuming he makes no payments. Write your answer in the Account Balance column.
Compounding Period
Account Balance after 2 years
Yearly
1=00 1 + 01692) 13
Semiannually

Monthly

Daily