Question

In a half life word problem, asking to find an interest compounded annually, what do you plug in for n in the formula?

Answer 1

Compound Interest Formula
Total Earned = principal x (1 + rate)^n
Generally the 'n' is the amount of years the money has been invested and compounded.

Answer 2

The rate is 6.25% compound annually so I'm unsure what to plug in for n

Answer 3

Well how many years is the money invested? If it is $5,000 for 3 years then
Total Earned = principal x (1 + rate)^n
Total = 5,000 * (1.0625) ^ 3
Total = $5,997.31