You have to solve two problems, using the compound interest equations:
A = P(1 + r⁄n )nt
P = Principal (starting amount)
r = interest rate in decimal
n = # compounding per year
t = time in years
First question: You max out your credit card spending $1200. If you have an interest rate of 19%, and do not pay anything, how much will you owe after 6 months?
Second Question. You won $2,000,000 in the lottery. You have to decide where to put your money. Wells Fargo gives you 2% compounded monthly where as Chase gives you 3% compounded every two months. Where should you go if you expect to keep your money there for 5 years?