On the behavior of roots of trinomial equations (Q2416451)

Consider trinomial equations of degree $m$ represented by \[ P(z) = z^m + a_pz^p + a_0 = 0\tag{1}, \] where $a_p$ and $a_0$ are real numbers, $m$ and $p$ are integers with $0 < p < m$, $a_p < 0 < a_0$, and $a_p + a_0 = -1$. As noted by the authors, for some values of $m, p, a_{p}$ and $a_{0}$, (1) is used in some problems of financial mathematics related to determine the interest rate of a uniform series of payment. For example, considering the number $n$ of periods, the payment PMT, the present value PV, the future value FV and the interest rate I, and putting $z = 1 + I$, one has the following equations (2) \begin{itemize} \item[(a)] The uniform series capital recovery formula can be rewritten as $z^{n+1} - (a_0 + 1)z + a_0 = 0$, with $a_0 = PMT/PV$. Considering $PV > PMT$, we have $0 < a_0 < 1$. \item[(b)] For the uniform series sinking fund formula with the payment at the end of each period, we have $z^n - (a_0 + 1)z + a0 = 0$, with $a_0 = (FV-PMT)/PMT$ (here $a_0 > 0$). \item[(c)] The equation for the uniform series capital recovery formula can be rewritten as $z^n - (a0 + 1)z^{n-1} + a0 = 0$, with $a_0 = PMT/(PV - PMT)$; in this case, $a_0 > 0$. \item[(d)] For the uniform series sinking fund formula, we have $z^{n+1} - (a_0 + 1)z + a_0 = 0$, with $a_0 = FV/PMT$; observe that $a_0 > 1$. \end{itemize} The paper under review deals with the study of the behavior of the roots of (1). It shows that $P_p(z)$ has $2$ positive zeros $z = 1$ and $z = \zeta_p$, and at most $2$ negative zeroes. More precisely, if $m$ is even and $p$ is odd, then $P_p(z)$ does not possess negative zeroes; if $m$ is odd, then $P_p(z)$ one negative zero $z = \omega_p$; when $m$ and $p$ are even, $P_p(z)$ has $2$ negative zeros $z = -1$ and $z = -\zeta_p$. The main results of the paper are stated as four theorems. The first one shows that the roots of (1) are simple except in the case of $a_p = - m/p$. The second one concerns the real roots of (1). It shows that: the zero $\zeta_p$ of $P_p(z)$ is an increasing function of $a_0$; for $m$ odd, the negative zero $\omega_p$, of $P_p(z)$ is a decreasing function of $a_0$; for $m$ and $p$ even, the negative zero $-\zeta_p$ of $P_p(z)$ is a decreasing function of $a_0$. The third and the fourth main results concern the special case where $p = 1$ (related to equations (2) (b) and (d)) or $p = m - 1$ (related to (2) (a) and (c)). The third theorem provides information on the distribution of the zeros of $P_p(z)$. The fourth theorem shows that the polynomial $P_p(z)/(z - 1)$ is generated by a three term recurrence relation.