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.

2. How much more is Alonso paying by having his interest compounded daily versus yearly?

3. How does the frequency of compounding impact the overall cost of Alonso's total interest?