
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:Suppose that $500 is invested at the end of every year for 5 years. The polynomial
function that models the value of the investment is
P(x) = 500x5 + 500x4 + 500x³ + 500x² + 500x, where x
represents the effective interest rate plus 100%. One year after the last payment, the
investment is worth $3200. Find the effective interest rate one year after the last
payment, to the nearest tenth. (Note: You will need to subtract 1 from the value of x
to find the effective interest rate.)
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