Financial Polynomials Essay

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In this assignment we will be working with polynomials. Polynomials are a mix between several terms that we can add, subtract, multiply, and divide. They are known to be one of the most basic algebraic operations. I wondered why we needed to learn about polynomials and I found that we have many uses for polynomials in everyday life like, financial planning. A polynomial equation can solve the amount of interest that will accrue for a deposit amount in an investment or saving account at a given interest rate. We are given some polynomial expressions to work with from our book. I will be breaking down each expression and explaining my work. Along with using vocabulary terms to help better explain my work. The vocabulary I am using is: FOIL, like terms, descending order, dividend, and divisor. The first problem we are looking at is problem 90 on page 304. Which states: “P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial represents the value of the investment after 1 year. Rewrite this expression without parentheses. Evaluate the polynomial if ” (Dugopolski, 2012). P(1 + r/2)2 The original expression. P(1 + r/2)(1 + r/2) Simplify the expression by using FOIL. P(1+ r/2 + r/2 + r2/4) Combine the like terms. P(1 + 2(r/2) + r2/4) Distribute P across the trinomial. P + Pr + Pr2/4 Put all variables in descending order. Now we are to try out our polynomial formula with the given sets of numerical information. P = $200 and r = 10% Interest rate as a decimal number r =.10 P + Pr + Pr2/4 The expanded formula. 200 + 2/4(200)(.10) + 200(.10)2 Substitute values into formula. 200 + 10 + 200(.01) Do the

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