We use the formula for compounding interest [tex]A(t)=P(1+ \frac{r}{n})^{nt} [/tex], where P is the principal, r is the rate as a decimal, n is the number of times compounded per year, and t is the time.
We plug-in $5,500 for P, 0.04 for r, and 3 for t. The only thing we're changing is n.
For an account compounded semiannually, we use 2 for n. For quarterly, we use 4 for n. For monthly, we use 12 for n.
For semiannually, the account is worth $6,193.89. Quarterly, $6,197.54. Mostly, $6,200.00.
