document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=92818>Question 92818</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Compound Semi Annually.\r<BR>\n" );
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document.write( "P dollars is invested at annual interest rate r for 1 year.  If the interest rate is compounded semiannually, then the polynomial P(1+r/2)squared presnts the value of the investment after 1 year.  Rewrite this expression without parenthesis. Evalate the polynomial if P=$200 and r=10%\r<BR>\n" );
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document.write( "I need help understanding this type of word problem. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #67539 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=67539\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> P dollars is invested at annual interest rate r for 1 year. If the interest rate is compounded semiannually, then the polynomial P(1+r/2)squared presnts the value of the investment after 1 year. Rewrite this expression without parenthesis. Evalate the polynomial if P=$200 and r=10% <BR>\n" );
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document.write( "A(t) = P(1+(r/n))^(nt)<BR>\n" );
document.write( "Your Problem:<BR>\n" );
document.write( "Amount invested is P<BR>\n" );
document.write( "n = 2 meaning you compound the money twice in a year<BR>\n" );
document.write( "t is the number of years; in your case that is \"1\"<BR>\n" );
document.write( "r is the annual rate of interest<BR>\n" );
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document.write( "A(1) = P(1+(0.10/2))^(2*1)<BR>\n" );
document.write( "A(1) = P(1.05)^2<BR>\n" );
document.write( "A(1) = P(1.1025)<BR>\n" );
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document.write( "If you expand the expression as you were directed you get:<BR>\n" );
document.write( "A(t) = P(1+(r/n))^2 <BR>\n" );
document.write( "= P[(1+(r/n))(1+(r/n))] <BR>\n" );
document.write( "= P[1 + 2(r/n) + (r/n)^2]<BR>\n" );
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document.write( "If P=$200 and r=10% you get:<BR>\n" );
document.write( "A(1) = 200[1 + 2*0.05 + (0.05)^2]<BR>\n" );
document.write( "A(1) = $220.50<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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