Financial Polynomials
How do we solve a Financial Polynomials?
Mishell Baker
MAT221: Introduction to Algebra
Pro: Mariya Ivanova
November 23, 2013
How do we solve a Financial Polynomials? When solving for Financial Polynomials I need to use the formula P (1 + r/2)2. I will be able to calculate how much interest my money will collect over a 1 year period. Then I can further figure out if I will have enough money over a longer period of time, to purchase my new item. I will use $200 at 10% interest for the first equation. The second equation I will use $5,670 at 3.5% interest rate. The final equation I will be dividing -3x by -9x3 + 3x2 – 15x.
We need to use the polynomial expression P (1 + r) 2
We will have to eliminate parentheses by multiplying by itself P (1 + r) (1 + r)
Using foil to carry out the expression P (1 + r + r + r2)
Combine like terms P (1 + 2r +r2)
Distribute the P in the trinomial P + 2Pr + Pr2
Normal polynomials run in descending order however; this one runs in ascending order with my highest exponent as the last term instead of first term.
Page 304 problem 90 of Elementary and Intermediate Algebra states “P dollars is invested at annual rate r for 1 year. If the interest is compounded seminally than the polynomial is P (1 + r) 2 represents the value of the investment after 1 year. Rewrite the expression without parentheses. Evaluate the expression using P = 200 and r = 10%.”
First the r is turned into a decimal P = 200 r = .10
My formula after removing parentheses P + 2Pr + Pr2
Substitute my values 200 + 2(200) (.10) + 200(.10)2
After doing my exponent and math on both sides 200 + 40 + 2
The answer of my formula is 242
Over the course of 1 year, if I invested $200 at 10% interest rate. I would receive $42 in interest for that year. My total amount save thus far is $242.
The next set I will be using is P = $5670 r = 3.5%
Changing my 3.5% into a decimal r = .035
Mishell Baker
MAT221: Introduction to Algebra
Pro: Mariya Ivanova
November 23, 2013
How do we solve a Financial Polynomials? When solving for Financial Polynomials I need to use the formula P (1 + r/2)2. I will be able to calculate how much interest my money will collect over a 1 year period. Then I can further figure out if I will have enough money over a longer period of time, to purchase my new item. I will use $200 at 10% interest for the first equation. The second equation I will use $5,670 at 3.5% interest rate. The final equation I will be dividing -3x by -9x3 + 3x2 – 15x.
We need to use the polynomial expression P (1 + r) 2
We will have to eliminate parentheses by multiplying by itself P (1 + r) (1 + r)
Using foil to carry out the expression P (1 + r + r + r2)
Combine like terms P (1 + 2r +r2)
Distribute the P in the trinomial P + 2Pr + Pr2
Normal polynomials run in descending order however; this one runs in ascending order with my highest exponent as the last term instead of first term.
Page 304 problem 90 of Elementary and Intermediate Algebra states “P dollars is invested at annual rate r for 1 year. If the interest is compounded seminally than the polynomial is P (1 + r) 2 represents the value of the investment after 1 year. Rewrite the expression without parentheses. Evaluate the expression using P = 200 and r = 10%.”
First the r is turned into a decimal P = 200 r = .10
My formula after removing parentheses P + 2Pr + Pr2
Substitute my values 200 + 2(200) (.10) + 200(.10)2
After doing my exponent and math on both sides 200 + 40 + 2
The answer of my formula is 242
Over the course of 1 year, if I invested $200 at 10% interest rate. I would receive $42 in interest for that year. My total amount save thus far is $242.
The next set I will be using is P = $5670 r = 3.5%
Changing my 3.5% into a decimal r = .035