Finacial Polynomials

Roshonda Young
MAT221: Introduction to Algebra
Instructor: Pamela Josife
!ctober 2"# 2"1$
Financial Polynomials
!n %age $"&# %roblem '" says that P dollars is in(ested at annually interest rate r for 1 year) If the
interest rate is com%ounded semiannually then the %olynomial is P*1+,r-2./2# 0hich re%resents the
(alue in(ested after 1 year) 1hen starting this %roblem the first thing I need to do is re0rite the
%olynomial e2%ression 0ithout %arenthesis# so I 0ill need to use FOIL for the binomial *1,r-2./2)
P*31,r-2./2 is the original e2%ression# then the s3uared Amount multi%lies itself P*1,r-2. *1,r-2.# no0
I used the F!I4 for the e2%ression P*1,1r-2,1r-2,r-2/2# then I combined the like terms ne2t the % is
distributed across the trinomial P*1,2Pr-2,Pr-2/2. This 0ould be a traditional %olynomial that is in
ascending order# because the highest e2%onent is in the last term instead of the first term) It 0ould not be
in descending order because the highest e2%onent is not the first term)
5o0 I 0ill com%lete the %olynomial using the numbers that I 0as gi(en for (ariables P and r)
P62"" and r61"7 *)1".# 1" %ercent is turned into a decimal
P,2Pr-2,Pr-2/2# This is the e2%anded formula
2"",2*2"".)1"-2,2""*)1"-2. /2# the (alues are %ut into the formula
2"",2",&
22& is the ans0er to formula
8o 2"" hundred dollars left alone for a year 1" %ercent semiannually results in 22&)"" dollars)
This 0ill be the second %olynomial e2%ression 0here (ariables P 0ill e3ual 9:;" and r 0ill e3ual $)97#
$)9 %ercent is )"$9 in decimal form)
P,2Pr-2,Pr-2/2# this is the e2%anded form)
9:;",2*9:;".)"$9-2, *9:;".)"$9-2/2 # the (alues are %lugged into the e2%ression)
9:;",11$&"*)"$9-2. ,9:;"*)"$9-2./2
9:;",1'<)&9,&
9<;2)&9# is the final ans0er
8o starting 0ith 9:;" dollars and com%ounding $)9 %ercent intrest once a yrear yields 2"2)&9 dollars in
intrest at the end of the year for a total of 9<;2)&9 dollars)
Problem ;" on %age $11
*='2/2,$2/2=192. -$2# this is the original e2%ression)
*='2/2,$2/2=192.-$2# Re0rite e2%ression to mae certain of 0hat is being di(ided by 0hat)
='2/2-$2,$2/2-$2=192-$2# I %laced the denominator under each term)
$2 > 2 =9# I sim%lified each term by di(iding the (ariables 0ith the e2%onents# then subtracted the
e2%onents) 5e2t di(ided the numbers) I then e(aluated the , and the > signs and since some terms are
not alie 0e cannot combine them $2 >2 >9 is the ans0er)
For this assignment 0e used numbers for (ariables to sol(e a financial %olynomial to see 0hat the
interest 0ould be on an in(estment after 0ith an 1" %ercent interest rate and also 0e found out that if 0e
started out 0ith a certain number and com%ounding it a certain interest once a year it ga(e of the total of
yield interest at the end of the year)
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