Financial Polynomials Essay

414 Words2 Pages
Financial Polynomials Christina. M. McCollum MAT 221: Introduction to Algebra Instructor: William Blasczyk 23 MAR 14 Financial Polynomials Financial Polynomials can be used to solve monetary equations for everyday uses or and multiply. In this assignment, I am asked to solve a problem located in the class textbook. I will not only solve the problem, but I will also incorporate five math vocabulary words. Located on page 304, problem #90 states, “P dollars is invested at annual interest rate r for 1 year. If the interest is compounded the polynomial P(1+r/2)2 represents the value of the investment after 1 year.” (Dugopolski, 2012, p.304) For the first part rewrite the expression without parenthesis. This would require the use of FOIL, which means multiply First, Outer, Inner, Last. Do this to the binomial (1+r/2)2 and then multiply all of the terms by P. The following is an example: P(1+r/2)2 This is the original expression with the exponent ONLY with the binomial. P(1+r/2)(1+r/2) Next step is to multiply the squared quantity. P(1+(r/2)+(r/2)+(r2/4)) Then carry out FOIL. P(1+(2r/2)+(r2/4)) Combine like terms. P+(2Pr/2)+(Pr2/4) Distribute P throughout the trinomial 4P+4Pr+Pr2 Simplified. 4 Now, unlike traditional polynomials, the one used above is not in descending order of the variables. Instead, the polynomial used above is in an ascending order. The high exponent can be found in the last term instead of the first. This problem is also known as an expression, not an equation. In this part of the assignment, solve the polynomial formula with two different sets of numbers. For example. P=$200 and r=10% or .10 as a decimal 4(200)+4(200)(.10)+200(.10)2 Substitute the values in

More about Financial Polynomials Essay

Open Document