math/algebra
posted by Debbie .
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+r/2)^2represents the
value of the investment after 1 year. Rewrite this expression
without parentheses. Evaluate the polynomial if
P =$200 and r =10%.

it is totally impractival to write P(1+r/n)^n without brackets, unless n=2
that would be P(1 + r + r^2/4)
= P + Pr + Pr^2/4
amount = 200(1.05)^2
= 220.50
notice in the expanded version
amount = 200 + 200(.10) + 200(.10)^2/4
= 200 + 20 + 0.5
= 220.50
mmmh, compare the two calculations. 
7300@7% COMPOUNDED SEMIANNUALLY FOR 3 YRS
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