SOLUTION: Compounded semiannually, P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial P (1+ represents the value of
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-> SOLUTION: Compounded semiannually, P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial P (1+ represents the value of
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Question 177106This question is from textbook
: Compounded semiannually, P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semiannually, then the polynomial P (1+ represents the value of the investment after 1 year. Rewrite this expression without parentheses. Evaluate the polynomial if
P = $200 and r =10%. This question is from textbook
You can put this solution on YOUR website! the polynomial P (1+ represents the value of the investment after 1 year. Rewrite this expression without parentheses. Evaluate the polynomial if
P = $200 and r =10%.
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A(t) = P(1+ (r/2))^(2t)
A(1) = 200(1 + (0.1/2))^(2*1)
A(1) = 200(1+0.05)^2
A(1) = 200*1.01025
A(1) = $220.50 (value after one year compounded semiannually)
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Cheers,
Stan H.
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