CONTENT:
Solve problem: P dollars is invested at annual interest rate r for 1 year. If the interest is compounded semi-annually, then the polynomial P(1+r/2)^2 represents the value of the investment after 1 year. Rewrite this expression without parentheses. “P†is represented as the value of invested money “r†is represented as the interest rate offered for this investment “A†represents the amount of money that is due for this investment P(1+r/2)2 represents the value of the investment after 1 year or simply the “A†We are required to rewrite the equation P(1+r/2)2 thus we get: A= P(1+r/2)2 = P(1+r/2)*( 1+r/2) * We show that the parenthesized equation is squared to remove the square = P(1+r2+r) *This is the result when we multiply 1+ r with 1+ r 4 2 2 =P+Pr+Pr2 *This is now the resulting equation as we have multiplied the “P†to both 4 elements inside the parenthesis. Now, for the evaluation: Evaluate...