document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=39791>Question 39791</A>: <I><SPAN STYLE=\"word-break: break-all;\"> CD rollover. Ronnie invested P dollars in a 2-year CD with an annual rate of return of r. After the CD rolled over three times, its value was P((1 + r y^2)^3. Which law of exponents can be used to simplify the expression? Simplify it.\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #25217 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=25217\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Ronnie invested P dollars in a 2-year CD with an annual rate of return of r. After the CD rolled over three times, its value was P((1 + r y^2)^3. Which law of exponents can be used to simplify the expression? Simplify it.\r<BR>\n" );
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document.write( "Is your formula correct?\r<BR>\n" );
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document.write( "After the 1st 2-year period the Value should be P(1+r)^2\r<BR>\n" );
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document.write( "After the 2nd 2-year period the Value should be <BR>\n" );
document.write( "[P(1+r)^2](1+r)^2<BR>\n" );
document.write( "After the 3rd 2-year period the Value should be <BR>\n" );
document.write( "{[P(1+r)^2](1+r)^2}(1+r)^2\r<BR>\n" );
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document.write( "So Value should be P(1+r)^6<BR>\n" );
document.write( "Then logV = log P + 6log(1+r)<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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