SOLUTION: 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 exponent
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-> SOLUTION: 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 exponent
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Question 39791: 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.
You can put this solution on YOUR website! 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.
Is your formula correct?
After the 1st 2-year period the Value should be P(1+r)^2
After the 2nd 2-year period the Value should be
[P(1+r)^2](1+r)^2
After the 3rd 2-year period the Value should be
{[P(1+r)^2](1+r)^2}(1+r)^2
So Value should be P(1+r)^6
Then logV = log P + 6log(1+r)
Cheers,
Stan H.
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