Financial Polynomials

Financial Polynomials

Polynomial help in finding the square, cubic and quadratic roots of a number, in relation to a graph, they give a visual representation of the mathematical statement made in the polynomial, and in conjunction with functions and calculus, they help in finding solutions to complex mathematical problems. Polynomials help to solve a wide range of problems, from equating simple values to solving complex problems. This paper will give an example of two problems that will demonstrate the importance and usefulness of polynomials in our everyday life. This paper will also solve another important mathematic equation while demonstrating the five vocabulary words from this week’s readings.

In the first example $200The is invested at an annual interest rate of 10% for 1 year. Let’s now evaluate the polynomial, the formula is P = $200 and r = 10%. First we are asked to rewrite the polynomial expression without any parenthesis. This means we need to FOIL the binomial (P + r) 2 and then multiply all terms by P. Traditional polynomials are mostly in a descending order.

P=$200 and r =10%=.10

P+2pr+pr2

200+2(200). (.10) +200 (.10)2

200+40+200(.01)

200+40+2

242

R is given as a decimal instead of a percent. The expanded formula values are then substituted in the formula. .102=.01 and 2(200) (.10) =40 200(.10) =2. The final result or the formula is 242

Therefore $200 left alone for 1year at a 10% compounded annually results in $242 gained.

Polynomials is a way of calculating the compound interest. This form of arithmetic helps to find the simple interest for an investment. A formula, expressed as a polynomial, helps in calculating compound interest in fast and easier way. The second formula is P = $5670 and r = 3.5%

P= $5670 and r =3.5%=.035

P+2pr+Pr2

5670 +2 (5670) (.035) +5670 (.035)2

5670+396.9+5670 (.001225)

5670 + 396.9+6.94575

6,073.84575

We first begin by converting the...