Lipa invests $⁢300 in an account with a 2.2% annual interest rate, compounded semi-annually. Caleb invests $⁢350 in an account that pays 3% annual interest, compounded quarterly. Whose balance is greater after 15 years? Compound Interest Formula: A=P⁢(1+(r)/(n))^n⁢t

Use the compound interest formula with the number of compounding periods over 15 years. Lipa’s balance is $300(1 + 0.022/2)^(2×15), or about $416. Caleb’s balance is $350(1 + 0.03/4)^(4×15), or about $548. Caleb has the greater balance, so the correct choice is “Caleb has a greater balance.”

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