Solve. The amount in an account earning interest compounded annually is given by the expression
where P is the principal amount invested, r is the rate of return per year (in decimal form), and t is the number of years that the money has been invested. First, write a polynomial that shows the amount in the account after 2 years if 2000 is invested. Then, write a polynomial that gives the difference between the amount of money in the account after 2 years as compared to 1 year.
A. After 2 years: (2000r2 + 4000r + 20) dollars; Difference: (2000r2 + 4000r) dollars
B. After 2 years: (2000r2 + 4000r + 2000) dollars; Difference: (2000r2 + 2000r) dollars
C. After 2 years: (2000r2 + 2r + 1) dollars; Difference: (2000r2 + r) dollars
D. After 2 years: (2000r2 + 2000) dollars; Difference: (2000r2 - 2000r) dollars
Answer: B
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