Question 203315
Value of investment after 1 year = {{{P(1+r/2)^2}}}


Rewriting the expression without parentheses, we get: 


{{{P(1+r/2)(1+r/2)}}}  =   {{{P*(1+(r/2)+(r/2)+(r^2/4))}}}


{{{P*(1+(2r/2)+(r^2/4))}}} = {{{P+(2Pr/2)+(Pr^2/4))}}}


{{{(4P+4Pr+Pr^2)/4}}}


 Evaluating the polynomial without parentheses, we get:


Value of investment after 1 year = {{{(4P+4Pr+Pr^2)/4}}}, where P = $200, and r = 10%, or .1


{{{(4P+4Pr+Pr^2)/4}}} = {{{((4*200)+(4*200*.1)+(200*(.1^2)))/4}}}


= {{{(800 + 80 + 2)/4}}}   =   {{{882/4}}}  =  ${{{highlight_green(220.50)}}}