posted by Adriana on .
If a sum of money is deposited in a savings account that is paying x percent annual interest (expressed as a decimal), then this sum of money increased by a factor of (1+x)^3 after 3 years.
A. multiply this expression
B. Evaluate the polynomial expression found in part (A) for an annual interest rate of 10% or x=0.1.
multiply the expression:
kind of pointless in this context, but
(1+x)^3 = 1 + 3x + 3x^2 + x^3
(1 + .1)^3 = 1.1^3 = 1.331
Technically, the problem is worded wrong. If the rate is x% annually, then the expression is (1 + x/100).