Answer
Account 1 $432.08
Account 2 $433.29
Account 3 $433.85
Explanation
For Account 1
P = $2200
r = 3%
n = 6 years
Since the acoount is compounding quarterly, this implies
r = 3/4 % = 0.75% = 0.0075
A = ?
Using the compound interest formula
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ A=2200(1+0.0075)^{6\times4} \\ A=2200(1.0075)^{24} \\ A=2200(1.1964) \\ A=2632.08 \end{gathered}[/tex]
Therefore, the interest on Account 1 after 6 years = A - P
Interest = $2632.08 - $2200 = $432.08
For Account 2
Since the acoount is compounding monthly, this implies
r = 3/12 % = 0.25% = 0.0025
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ A=2200(1+0.0025)^{6\times12} \\ A=2200(1.0025)^{72} \\ A=2633.29 \\ \end{gathered}[/tex]
Therefore, the interest on Account 2 after 6 years = A - P
Interest = $2633.29 - $2200 = $433.29
For Account 3
Since the acoount is compounding daily, this implies
r = 3/365 % = 0.008219% = 0.00008219
[tex]\begin{gathered} A=2200(1+0.00008219)^{6\times365} \\ A=2200(1+0.00008219)^{2190} \\ A=2633.85 \end{gathered}[/tex]
Therefore, the interest on Account 3 after 6 years = A - P
Interest = $2633.85 - $2200 = $433.85
