Question

Suppose that P dollars are invested in a savings account at interest rate I, compounded annually, for 2 years. The amount A in the account after 2 years is given by A = P(1 + i)^2. Find an equivalent polynomial expression for A.

Please help if you can!

Thank you! :-)

Answer 1

expand (1+i)^2

(I don't know why anybody would want to do that in this case)

Answer 2

Do you mean (1 + i)(1+ i)?

Answer 3

Find the amount of money in an account after 10 years if a principal of $2500 is invested at 3.5% invested compounded quartely.