Frequency of Compounding and APY We've seen that the frequency of compounding can have a significant effect on the overall interest accumulated. Let's take a deeper dive by calculating the APY of the same situation using different compounding periods. 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. tooda virtinoM Compounding Period Account Balance after 2 years Yearly 1-2 0.1692 A = 3000 1+ A = $4,101.09 Semiannually no birt oved balworl alb Monthly Daily virinom bebay derW89A bealtoves depsils of