Financial Polynomials

name

MAT 221: Introduction to Algebra

Linda Seeger

March 30, 2014

Financial Polynomials

Financial polynomials are an important part of determining how much money you will need to save to buy an expensive item that you are wanting. We use financial polynomials when we are deciding on how much money we should invest in our retirement funds, when we are planning for an overseas trips, or something as simple as purchasing a new car. If you sit down to talk to a financial advisor more than like they are going to use financial polynomials to figure out how much of your money you should invest in stocks, bonds, retirement and college fund. When evaluating a polynomial where the interest is compounded annually we the formula P(1 r)2. To evaluate this...