SOLUTION: pg. 287 90) 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)^2)^3. Which law

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: pg. 287 90) 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)^2)^3. Which law      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 118083: pg. 287
90) 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)^2)^3. Which law of exponents can be used to simplify the expression? simplify it.
answer: power rule P(1+r)^6
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
This is an example of the following rule:
%28a%5Eb%29%5Ec+=+a%5E%28b%2Ac%29
This is easily demonstrated.
Suppose a=3, b=4, c=5, then
%28a%5Eb%29%5Ec+=+a%5E%28b%2Ac%29
%283%5E4%29%5E5+=+3%5E%284%2A5%29
%283%5E4%29%5E5+=+%283%5E4%29%2A%283%5E4%29%2A%283%5E4%29%2A%283%5E4%29%2A%283%5E4%29
3%5E4+=+3%2A3%2A3%2A3

This is the same as 3%5E20+=+3%5E%284%2A5%29
The problem is
P%28%281+%2B+r%29%5E2%29%5E3+=+P%281+%2B+r%29%5E6 which I just showed
is true by analogy