Compound Interest: Adding Investments Over Time

When we talk about compound interest and adding investments over time, the polynomial expression plays a crucial role in calculating the total amount of money in the account. In this scenario, we start with an initial investment of $200 at an annual interest rate of 7%.

After the first year, an additional $350 is invested, followed by $400 more after three years and $150 more after four years. To calculate the total amount of money in the account after 4 years with these additional investments, we need to revise the polynomial expression accordingly.

The polynomial expression representing the total amount of money in the account after 4 years, with additional investments made after 3 years and 4 years, would be:

200(1.07)^4 + 350(1.07)^3 + 400(1.07) + 150(1.07)^2

This expression takes into account the original investment of $200 along with the additional investments made at different points in time. By using this polynomial expression, we can calculate the final balance in the account after the specified time period, considering the compound interest and additional investments made along the way.

Understanding how the polynomial expression evolves with additional investments over time is essential for effective financial planning and maximizing returns on investments. By keeping track of these changes, you can make informed decisions about when and how much to invest for optimal growth of your assets.