Problema Solution
Compounded semi-annually. P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial P(1 + r/2)^2 represents the value of the investment after 1 year. Rewrite this expression without parenthesis. Evaluate the polynomial if P=$200 and r = 10%.
Answer provided by our tutors
P(1 + r/2)^2
this really should simply be done in Algebrator, I get this as a first simplification:
(1/4)P(r+2)^2
which can be expanded to:
(1/4)P(r^2 + 4r + 4)
Solving this for P=$200, r=0.10:
F(P,r) = (1/4)P(r^2 + 4r + 4)
F(200,0.1) = 220.5