Financial Polynomials

Financial Polynomials
Elvin D. McCrary Jr.
MAT221/AFN1323A
Professor Issac Hines
June 30, 2013







This week's assignment will involve polynomial expressions that must be rewritten without parenthesis. In order to do this, we must use the F.O.I.L. (first, outer, inner, last) method on the binomial (1 + r)2 and after simplifying, multiply all terms by P. The polynomial expression in this assignment is P(1 + r/2)2. This polynomial is not in descending order of the variable r, but it is in ascending order because the highest exponent is not in the first term, but in the last term.
The FOIL method:
P(1 + r/2)2 Original polynomial expression
P(1 + r/2)(1 +r/2) Square the parenthesis.
P(1 + r/2 + r/2 + (r/2)2) Results after executing the FOIL method
P(1 + 2r/2 + (r/2)2) Combine like terms(r/2 + r/2)
P + 2P(r/2) + P(r/2)2 Distribution of P throughout the trinomial

Now I must input the numbers from problem number 90 on page 340 of the textbook. In the problem, $200 will represent P, and 10% will represent r.
P + 2P(r/2) + P(r/2)2 Formula I am working with
200 + 2(200)(.10/2) +200(.10/2)2 Put in values for P & r
200 + 400(.005) + 200(.005) Square, multiply, and simplify
200 + 20 + 1 Simplify and add across
$221 Answer of the problem
For this problem, $200 compounded semiannually at an interest rate of 10% for one year, will yield $21.00 of interest, totally $221 semiannually.
The second part of the assignment has me using $5,670 to represent P and 3.5% to represent r.
P + 2P(r/2) + P(r/2)2 Formula I am working with
5670 + 2(5670)(.035/2) +5670(.035/2)2 Put in values for P & r
200 + 11340(.0175) + 5670(.0175) Square, multiply, and simplify
200 + 198.45 + 99.22 Simplify and add across
$497.67 Answer of the problem
For this problem, $5670 compounded semiannually at an interest rate of 3.5% for one year, will yield $497.67 of interest semiannually.

The third part of the assignment is problem number 70 on page 311 of the textbook. I will be dividing a polynomial by a monomial to get the answer. The problem is to be worked is written as (-9x3 + 3x2 – 15x) */* (-3x)…..Where (-9x3 + 3x2 – 15x) will represent the dividend and (-3x) will represent the divisor.
(-9x3 + 3x2 – 15x) Divide the dividend by the divisor
(-3x)
-9x3 + 3x2 – 15x Use the distributive property; divide each by -3x
-3x -3x -3x
3x2 – x + 5 Final quotient

Math is universal and is used in all phases of life. These problems have helped me learn and understand the square of a sum, the product of a sum and difference, higher powers of binomials, division of polynomials, and dividing a polynomial by a binomial. I see how I can use these in everyday life practices and will implement them in my life. I will these practices when balancing my checkbook, figuring out the interest of something, and other real life scenarios.
References
Dugopolski, M. (2012). Chapter 4: Exponents and polynomials. In Elementary & intermediate algebra (pp. 255-320). New York, NY: McGraw-Hill.













Financial Polynomials

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