Loans and the Compound Interest Formula

NOTE: Round all answers to the nearest hundredth. Print and write directly on this. Do not use a PDF writer. Show all of your work.

Level $1$

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 $16\mathrm{.}92\%$ APR and be added to the bill if he doesn't pay full balance in $2$ years.

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.

$\backslash$table$[[$Compounding Period,Account Balance after $2$ years$],[$Yearly$,A=3000(1+\frac{0\mathrm{.}1692}{1}{)}^{1*2}$