Quantitative Analysis

Quantitative Analysis
Algebra with a Business Perspective

Donna M. Wacha
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Donna M. Wacha
Quantitative Analysis
Algebra with a Business Perspective
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2
Quantitative Analysis: Algebra with a Business Perspective
1st edition
© 2013 Donna M. Wacha & bookboon.com
ISBN 978-87-403-0443-5
3
Quantitative Analysis Contents
Contents
Preface 11
1 Equations, Inequalities & Linear Programming 12

Tutorial 1.1 Solve one-step equations in one variable. 12
Tutorial 1.2 Solve two-step equations in one variable. 14
Tutorial 1.3 Solve multi-step equations involving like-terms. 16
Tutorial 1.4 Solve multi-step equations involving parentheses. 18
Tutorial 1.5 Solve multi-step equations where the variable appears on each side
of the equation. 20
Tutorial 1.6 Solve multi-step inequalities in one variable. 22
Tutorial 1.7 Graph the solution of multi-step equations or inequalities (in one variable)
on a number line. 25
Tutorial 1.8 Graph a line that passes through two given points. 28
Tutorial 1.9 Graph a linear equation using its x- and y-intercepts. 30
Tutorial 1.10 Graph a linear equation (in slope-intercept form) using its slope and y-intercept. 32
Tutorial 1.11 Graph a linear equation (in standard form) using its slope and y-intercept. 34
Tutorial 1.12 Determine the slope of a line passing through 2 points. 37
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Tutorial 1.13 Use the slope-intercept formula to write the equation of a line with
a given slope and point. 41
Tutorial 1.14 Use the point-slope formula to write the slope-intercept form of
an equation of a line given its slope and a point. 43
Tutorial 1.15 Write the standard form of an equation of a line given its slope and a point. 45
Tutorial 1.16 Write the standard form of an equation of a line that passes through 2
given points. 48
Tutorial 1.17 Determine whether the lines for a pair of equations are parallel,
perpendicular or coincide with each other. 50
Tutorial 1.18 Write the equation of a line through a given point that is parallel to a given line. 54
Tutorial 1.19 Write the equation of a line through a given point that is perpendicular
to a given line. 56
Tutorial 1.20 Solve a system of linear equations by graphing 58
Tutorial 1.21 Solve a system of linear equations by substitution.
360° 59
.
Tutorial 1.22 Solve a system of linear equations by elimination. 62
thinking
Tutorial 1.23 Solve a system of 3 equations in 3 variables. 66
Tutorial 1.24 Solve applications involving systems of equations. 70
Tutorial 1.25 Find the marginal cost, the marginal cost revenue and the marginal cost
profit of given linear total cost functions, linear total revenue functions
and linear profit functions. 74
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Tutorial 1.26 Evaluate linear total cost functions, linear total revenue functions and
linear profit functions. 77
Tutorial 1.27 Write the equations for linear total cost functions, linear total revenue functions
and linear profit functions by using information given about the functions. 78
Tutorial 1.28 Find the break-even point for cost & revenue functions. 79
Tutorial 1.29 Evaluate and graph supply & demand functions. 81
Tutorial 1.30 Write the equation (in slope-intercept form) for a supply function
and/or a demand function. 84
Tutorial 1.31 Determine the market equilibrium for a given scenario. 86
Tutorial 1.32 Graph a linear inequality in two variables. 90
Tutorial 1.33 Solve a system of linear inequalities in two variables. 92
Tutorial 1.34 Name the vertices for the feasible solution region for the given system of linear
inequalities. 94
Tutorial 1.35 Determine the optimal minimum or maximum value of a given linear function
that is subject to constraints as defined by the given system of inequalities. 96
Tutorial 1.36 Use graphing to determine the optimal maximum value of a linear
function subject to constraints. 100
Tutorial 1.37 Use graphing to determine the optimal minimum value of a linear
function subject to constraints. 102
Tutorial 1.38 Solve applications involving linear programming. 104
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2 Matrices & Array Operations 110

Tutorial 2.1 Determine the number of rows or columns in a matrix. 110
Tutorial 2.2 Determine the order (dimensions) of a matrix. 111
Tutorial 2.3 Identify square matrices. 112
Tutorial 2.4 Identify the element (entry) at a given location (MRC). 113
Tutorial 2.5 Determine a zero matrix with a given order. 114
Tutorial 2.6 Find the transpose of a matrix. 115
Tutorial 2.7 Determine the negative of a matrix. 116
Tutorial 2.8 Use matrices to present and interpret given data. 117
Tutorial 2.9 Add matrices. 119
Tutorial 2.10 Subtract matrices. 121
Tutorial 2.11 Use matrix addition and/or subtraction to solve real-world business
applications. 122
Tutorial 2.12 Multiply a matrix by a scalar (real number). 124
Tutorial 2.13 Find the product of given matrices. 126
Tutorial 2.14 Complete matrix multiplication involving zero matrices. 131
Tutorial 2.15 Complete matrix multiplication involving identity matrices. 133
Tutorial 2.16 Use matrix multiplication to solve real-world business applications. 135
Tutorial 2.17 Write the augmented matrix for a system of equations. 138
Tutorial 2.18 Use a reduced matrix to determine the solutions for a given system. 139
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Tutorial 2.19 Use matrices to solve systems with unique solutions. 140
Tutorial 2.20 Use matrices to solve systems with non-unique solutions. 148
Tutorial 2.21 Find the inverse of a 2 × 2 square matrix. 151
Tutorial 2.22 Use 2 × 2 inverse matrices to solve systems of equations. 153
Tutorial 2.23 Use row operations to find the inverse of a square matrix. 155
Tutorial 2.24 Use N × N inverse matrices to solve systems of equations. 158
Tutorial 2.25 Use matrix inverses to solve real-world applications. 159
Tutorial 2.26 Use a computer spreadsheet to determine the number of rows and columns
contained in a matrix and thereby determine the order of the matrix. 162
Tutorial 2.27 Use a computer to determine the transpose of a matrix.
Use a computer to determine the negative of a matrix. 163
Tutorial 2.28 Use a computer spreadsheet to add matrices.
Use a computer spreadsheet to subtract matrices. 165
Tutorial 2.29 Use a spreadsheet to complete a scalar multiplication. 167
Tutorial 2.30 Use a spreadsheet to complete a matrix multiplication. 168
Tutorial 2.31 Use a spreadsheet to solve systems of equations involving row operations. 169
Tutorial 2.32 Use a spreadsheet to determine the inverse of a matrix.
Use a spreadsheet to find the determinant of a matrix. 172
Tutorial 2.33 Use a spreadsheet to solve a system of equations involving inverse matrices. 173

3 Quadratic & Other Special Functions 175

Tutorial 3.1 Find the greatest common factor of a polynomial. 175
Tutorial 3.2 Factor a polynomial expression by grouping. 179
Tutorial 3.3 Factor a polynomial expression (x + bx + c) as a product of binomials.
2
180
Tutorial 3.4 Factor a polynomial expression (ax + bx + c) as a product of binomials.
2
183
Tutorial 3.5 Factor “special” polynomials through patterning. 187
Tutorial 3.6 Use factoring to complete business applications. 192
Tutorial 3.7 Solve quadratic equations by factoring. 194
Tutorial 3.8 Solve quadratic equations by completing the square. 197
Tutorial 3.9 Derive the quadratic formula by completing the square. 200
Tutorial 3.10 Solve quadratic equations using the quadratic formula. 201
Tutorial 3.11 Determine the number and the nature of the solutions for a quadratic equation. 204
Tutorial 3.12 Solve business applications involving quadratic functions. 207
Tutorial 3.13 For any quadratic function: 210
Tutorial 3.14 Use quadratic functions to find market equilibrium. 216
Tutorial 3.15 Use quadratic functions to find break-even point(s). 220
Tutorial 3.16 Maximize quadratic revenue and/or profit functions.
Minimize quadratic cost functions. 225
Tutorial 3.17 Use quadratic functions to solve real-world applications. 227
Tutorial 3.18 Identify the graphs of basic functions. 229
4 Mathematics of Finance 240
Tutorial 4.1 Find the amount of interest for a simple interest loan or investment. 240
Tutorial 4.2 Find the future value for a simple interest investment. 241
Tutorial 4.3 Find the amount that was invested into an account where simple interest is used. 242
Tutorial 4.4 Find the simple interest rate earned on an investment. 243
Tutorial 4.5 Find the time needed for an account with a simple interest rate to reach
a desired future value. 244
Tutorial 4.6 Find the future value for an account that is compounded periodically. 245
Tutorial 4.7 Find the amount of interest earned for an account that is compounded
periodically. 247
Tutorial 4.8 Find the amount that was invested into an account that is compounded
periodically. 249
Tutorial 4.9 Find the interest rate for a periodically-compounded account. 251
Tutorial 4.10 Solve an exponential equation using logarithms. 253
Tutorial 4.11 Find the time needed for an account that is compounded periodically to
reach a certain future value. 255
Tutorial 4.12 Find the future value for an account when interest is compounded
continuously. 258
9
Tutorial 4.13 Find the amount that was invested into an account that is compounded
continuously. 260
Tutorial 4.14 Find the interest rate for an account that is compounded continuously. 261
Tutorial 4.15 Find the time needed for an account that is compounded continuously
to reach a specified amount. 263
Tutorial 4.16 Find the annual percentage yield (APY) of money in an account where
the interest is compounded periodically. 265
the interest is compounded continuously. 267
Tutorial 4.18 Compute the future value of an ordinary annuity. 268
Tutorial 4.19 Compute the payment amounts required in order for an ordinary annuity
to have a specified future value. 271
Tutorial 4.20 Find out how long it will take for an ordinary annuity to reach a savings goal. 273
Tutorial 4.21 Compute the future values of an annuity due. 276
Tutorial 4.22 Compute the payment amounts required in order for an annuity due
to have specified future values. 278
Tutorial 4.23 Find out how long it will take for an annuity due to reach a savings goal. 280
Tutorial 4.24 Compute the present value of an ordinary annuity. 283
Tutorial 4.25 Compute the payments for a specified present value for an ordinary annuity. 285
Tutorial 4.26 Compute the present value of an annuity due. 287
Tutorial 4.27 Compute the payments for a specified present value for an annuity due. 289
Tutorial 4.28 Compute the present value of a deferred annuity. 292
Tutorial 4.29 Compute the payments for a specified present value for a deferred annuity. 294
Tutorial 4.30 Find the regular payments to amortize a debt. 297
Tutorial 4.31 Find the amount that can be borrowed for a specified payment. 299
Tutorial 4.32 Find the unpaid balance of a loan. 301
5 About the Author 303
10
Quantitative Analysis Preface
Preface
• acknowledgements…
First of all, I would like to thank Lynn Dietrich (director of the Math Learning Center at Monmouth
University, West Long Branch, New Jersey, USA) for her help in producing this tutorial text. Without her
help, many typographical errors might not have been caught before submitting the final draft.
I would also like to extend my thanks to Sophie Tergeist (bookboon.com Ltd. – Davenport House, 16 Pepper
Street, London E14 9RP, United Kingdom) for her constant patience in answering my numerous questions
during the production of this text.
• explanation of how the textbook is organized…
This tutorial textbook has been organized into 4 chapters (units) with several individual tutorial lessons
within each chapter. As presented in the table of contents, each of the tutorials has been listed separately
with its objective and its starting page. For coding purposes: “Tutorial N.M” means that the tutorial is the
Mth lesson in chapter N.
I attempted to present each of the tutorials as if a person (teacher, tutor) was sitting next to the reader
talking each of the concepts through. My goal was to make sure that each of the lessons was fully explained
but still fully understandable. Hopefully this goal was met.
• description of whom I believe might be interested in using these tutorials…
The purpose of this tutorial textbook is to present mathematical skills (algebraic concepts) and their various
applications that may be important to students of management (business) science. The applications included
should allow readers to view math in a practical setting relevant to their intended careers.
11
Quantitative Analysis Equations, Inequalities & Linear Programming
1 Equations, Inequalities & Linear

Programming
Tutorial 1.1 Solve one-step equations in one variable.
The equations below are considered one-step linear equations because they are each expressed using one
variable (x) and take exactly one step to solve:
x + 5 = 12 x – 7 = 18 8x = 72 x÷6 = 8
Whenever we need to solve a one-step linear equation, we can talk ourselves through the process by
asking these questions:
1. What value do we wish to address?

2. Within the given equation, what operation (addition, subtraction, multiplication, division)
are we doing with the value that needs to be addressed?
3. What is the opposite of the operation answered in question #2? (Apply the operation named
here to both sides of the equation and we will derive the solution to the given equation.)
example 1.1a Solve for the variable: x + 5 = 12

x + 5 = 12 → x + (5 – 5) = (12 – 5) → x = 7
We wish to address the 5 that is being added to the variable x. Since the 5 is
being added, we need to subtract it from both sides of the equation. And, since
12 – 5 = 7, the answer to the equation is: x = 7.
example 1.1b Solve for the variable: x ‒ 7 = 18

x – 7 = 18 → x + (–7 + 7) = (18 + 7) → x = 25
We wish to address the 7 that is being subtracted from the variable x. Since the
7 is being subtracted, we need to add it to both sides of the equation. And, since
18 + 7 = 25, the answer to the equation is: x = 25.
example 1.1c Solve for the variable: 8x = 72

[
[ o o[

We wish to address the 8 that is being multiplied with the variable x. Since the 8
is being multiplied, we need to divide it on both sides of the equation. And, since
72 ÷ 8 = 9, the answer to the equation is: x = 9.
12
example 1.1d Solve for the variable: x ÷ 6 = 8

x ÷ 6 = 8 → x (÷ 6 × 6) = (8 × 6) → x = 48
We wish to address the 6 where the variable x is being divided by 6. Since the
6 is being divided, we need to multiply it on both sides of the equation. And,
since 8 × 6 = 48, the answer to the equation is: x = 48.
13
Tutorial 1.2 Solve two-step equations in one variable.

The equations below are considered two-step linear equations because they are each expressed using one
variable (x) and take exactly two steps to solve:
x x
2x + 5 = 17 3x – 7 = 26 + 4 =−3 − 2 =−10
7 5
When solving a two-step equation, we will be performing the order of operation (PEMDAS) in reverse
order…which means that we should address any values that are being added or subtracted first and then
address any values that are being multiplied or divided. Therefore, whenever we need to solve a two-step
linear equation, we can talk ourselves through the process by asking these questions:
1. What value is being added to or subtracted from the variable term? (This is the value that
needs to be addressed first.)
2. How should we undo the value that is being added to or subtracted from the variable
term? (We will need to transform the given equation into a one-step equation by adding
or subtracting the value that needs to be addressed as we did in a previous tutorial.
Remember to apply the opposing operation to both sides of the equation and we will derive
a transformed equation that will lead to the solution to the given equation.)
3. Within the transformed equation, how should we undo the value that is being multiplied
with the variable? Or, how should we undo the value that is the divisor of the variable?
(Remember to apply the opposing operation named here to both sides of the equation and
we will derive the solution to the given equation.)
example 1.2a Solve for the variable: 2x + 5 = 17
2 x 12
2x + 5 = 17 → 2x + (5 – 5) = (17 – 5) → 2x = 12 → = →x=6
2 2
We should first address the 5 that is being added to the variable term of 2x. Since
the 5 is being added, we need to subtract it from both sides of the equation.
And, since 17 – 5 = 12, the transformed equation should read: 2x = 12. Secondly,
since the 2 is being multiplied with the variable x in the transformed equation,
we will need to divide each side to the transformed equation by 2. After doing
this, the solution to this equation is: x = 6.
14
example 1.2b Solve for the variable: 3x ‒ 7 = 26
3 x 33
3x – 7 = 26 → 3x + (–7 + 7) = (26 + 7) → 3x = 33 → = → x = 11
3 3
We should first address the 7 that is being subtracted from the variable term
of 3x. Since the 7 is being subtracted, we need to add it to both sides of the
equation. And, since 26 + 7 = 33, the transformed equation should read: 3x = 33.
Secondly, since the 3 is being multiplied with the variable x in the transformed
equation, we will need to divide each side to the transformed equation by 3.
After doing this, the solution to this equation is: x = 11.
x
example 1.2c Solve for the variable: + 4 =−3
7
x x x
+ 4 =−3 → + (4 − 4) = ( −3 − 4) → = −7 →
7 7 7
 x  7 
 7   1  = ( −7)(7) → x = –49
  
x
We should first address the 4 that is being added to the variable term of .
7
Since the 4 is being added, we need to subtract it from both sides of the equation.
x
And, since –3 – 4 = –7, the transformed equation should read: = –7. Secondly,
7
since the x is being divided by the 7, we will need to multiply each side of the
transformed equation by 7. After doing this, the solution to this equation is:
x = –49.
x
example 1.2d Solve for the variable: − 2 =−10
5
x x x
− 2 =−10 → + ( −2 + 2) = ( −10 + 2) → = −8 →
5 5 5
  
 5   1  = ( −8)(5) → x = –40
  
We should first address the 2 that is being subtracted from the variable term
x
of . Since the 2 is being subtracted, we need to add it to both sides of the
5 x
equation. And, since –10 + 2 = –8, the transformed equation should read:
5
= –8. Secondly, since the x is being divided by the 5, we will need to multiply
each side of the transformed equation by 5. After doing this, the solution to
this equation is: x = –40.
15
Tutorial 1.3 Solve multi-step equations involving like-terms.

Terms that have exactly the same variable combination (or lack thereof) are considered like-terms…
which can then be combined into a transformed term. For example, consider the like-terms of 2x and 3x.
When added: 2x + 3x = 5x. Or, when subtracted: 2x – 3x = –1x. We can use this combining like-terms
strategy to simplify linear equations as those given below:
3x + 5 + 5x – 9 = 12 4x – 3 – 7x + 3 = 12 2x – 6 + 3x + 8 = –33
example 1.3a Solve for the variable: 3x + 5 + 5x – 9 = 12
3x + 5 + 5x – 9 = 12 → (3x + 5x) + (5 – 9) = 12 → 8x – 4 = 12 →
8 x 16
8x + (–4 + 4) = (12 + 4) → 8x = 16 → = →x=2
8 8
In the given equation, 3x and 5x are considered like-terms as are 5 and –9.
Combining like-terms, 3x + 5x = 8x and 5 – 9 = –4. We have now transformed
the given equation into a two-step equation: 8x – 4 = 12. We should next
address the 4 that is being subtracted from 8x by adding 4 to both sides of the
equation…which results into the one-step equation: 8x = 16. To determine the
final solution of the given equation, divide both sides of the equation by 8. Thus
the solution is: x = 2.
example 1.3b Solve for the variable: 4x – 3 – 7x + 3 = 12
4x – 3 – 7x + 3 = 12 → (4x – 7x) + (–3 + 3) = 12 → –3x + 0 = 12 →
−3 x 12
–3x = 12 → = → x = –4
−3 −3
In the given equation, 4x and –7x are considered like-terms as are 3 and –3.
Combining like-terms, 4x – 7x = –3x and –3 + 3 = 0. We have now transformed
the given equation into a one-step equation: –3x = 12. To determine the final
solution of the given equation, divide both sides of the equation by -3. Therefore
the solution for this equation is: x = –4.
16
example 1.3c Solve for the variable: 2x – 6 + 3x + 8 = –33
2x – 6 + 3x + 8 = –33 → (2x + 3x) + (–6 + 8) = –33 → 5x + 2 = –33 →
5 x −35
5x + (2 – 2) = (–33 – 2) → 5x = –35 → = → x = –7
5 5
In the given equation, 2x and 3x are considered like-terms as are –6 and 8.

Combining like-terms, 2x + 3x = 5x and –6 + 8 = 2. We have now transformed
the given equation into a two-step equation: 5x + 2 = –33. We should next
address the 2 that is being added to 5x by subtracting 2 from both sides of the
equation…which results into the one-step equation: 5x = –35. To determine
the final solution of the given equation, divide both sides of the equation by 5.
Thus the solution is: x = –7.

Tutorial 1.4 Solve multi-step equations involving parentheses.

Occasionally, linear equations will contain parentheses or other grouping symbols. Following the order
of operations (PEMDAS), we need to address the grouping symbols first. Therefore, we will use the
Distributive Property to clear these parentheses (or other grouping symbols).
Distributive Property over Addition: Distributive Property over Subtraction:

a(b + c) = ab + ac a(b – c) = ab – ac
example 1.4a Solve for the variable: 5(3x – 8) = –70
5(3x – 8) = –70 → 5(3x) + 5(–8) = –70 → 15x – 40 = –70 →
15 x −30
15x + (–40 + 40) = (–70 + 40) → 15x = –30 → = → x = –2
15 15
Since the 5 is being multiplied with the entire contents of the parentheses, we
need to apply the Distributive Property…multiplying the 5 with the 3x and
then the 5 with the –8. We have transformed the given equation into a two-step
equation: 15x – 40 = –70. We must than address the 40 that is being subtracted
from 15x by adding 40 to both sides of the equation…which results into a one-
step equation: 15x = –30. To determine the final solution of the given equation,
divide both sides of the equation by 15. Therefore, the solution of the given
equation is: x = –2.
example 1.4b Solve for the variable: –7(4x – 8) = 140
–7(4x – 8) = 140 → (–7)(4x) + (–7)( –8) = 140 → –28x + 56 = 140 →
−28 x 84
–28x + (56 – 56) = (140 – 56) → –28x = 84 → = → x = –3
−28 −28
Since the –7 is being multiplied with the entire contents of the parentheses, we
need to apply the Distributive Property…multiplying the –7 with the 4x and
then the –7 with the –8. We have transformed the given equation into a two-step
equation: –28x + 56 = 140. We must than address the 56 that is being added
to –28x by subtracting it from both sides of the equation…which results into a
one-step equation: –28x = 84. To determine the final solution, divide both sides
of the equation by –28 which results in the solution: x = –3.
18
example 1.4c Solve for the variable: 10x – 3(8 – 5x) = 26
10x – 3(8 – 5x) = 26 → 10x + (–3)(8) + (–3)( –5x) = 26 → 10x – 24 + 15x = 26 →

(10x + 15x) – 24 = 26 → 25x – 24 = 26 → 25x + (–24 + 24) = (26 + 24) →
25 x 50
25x = 50 → = →x=2
25 25
Since the –3 is being multiplied with the entire contents of the parentheses,
we need to apply the Distributive Property…multiplying the –3 with the 8
and then the –3 with the –5x. We have transformed the given equation into a
multi-step equation: 10x – 24 + 15x = 26. After combining the like-terms of
10x and 15x, we now have the transformed two-step equation: 25x – 24 = 26.
We must than address the 24 that is being subtracted from 25x by adding 24
to both sides of the equation…which results into the one-step equation: 25x =
50. To determine the final solution, divide both sides of the equation by 25…
resulting in the solution: x = 2.
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Tutorial 1.5 Solve multi-step equations where the variable appears on each side of
the equation.
Occasionally, linear equations will have variables on both sides of the equation. We will need to transform
the given equation so that the variable appears on only one side of the new equation.
example 1.5a Solve for the variable: 7x = 2x – 25
5 x −25
7x = 2x – 25 → (7x – 2x) = (2x – 2x) – 25 → 5x = –25 → = → x = –5
5 5
Since the variable x appears on both sides of the given equation, we need to bring
one of the variable terms to the other side. Since it is usually preferable (although
not absolutely necessary) to move the smaller coefficient of the variable terms
to the larger, we should subtract 2x from both sides of the equation…resulting
in the one-step equation: 5x = –25. Dividing both sides of the transformed
equation by 5, we obtain the final solution: x = –5.
example 1.5b Solve for the variable: 16x – 4 = 38x + 84
16x – 4 = 38x + 84 → (16x – 16x) – 4 = (38x – 16x) + 84 → –4 = 22x + 84 →
−88 22 x
(–4 – 84) = 22x + (84 – 84) → –88 = 22x → = → –4 = x
22 22
Since the variable x appears on both sides of the given equation, we need to
bring one of the variable terms to the other side. And, since there are numeral
terms on both sides, we need to bring one of them to the other side. It is usually
preferable (although not absolutely necessary) to move the smaller coefficient
of the variable terms to the larger…so, we should subtract 16x from both sides
of the equation to handle the variable terms and subtract 84 from both sides of
the equation to handle the numeral terms. These actions result in the one-step
equation: –88 = 22x. Dividing both sides of the transformed equation by 22, we
obtain the final solution: x = –4.
20
example 1.5c Solve for the variable: 8(3x – 1) = 7(2x – 4)
8(3x – 1) = 7(2x – 4) → (8)(3x) + (8)(–1) = (7)(2x) + (7)(–4) →

24x – 8 = 14x – 28 → (24x – 14x) – 8 = (14x – 14x) – 28 →
10x – 8 = –28 → 10x + (–8 + 8) = (–28 + 8) → 10x = –20 →
10 x −20
= → x = –2
10 10
Since the given equation contains parentheses, we need to apply the Distributive
Property to both sets of parentheses…resulting in the equation: 24x – 8 = 14x – 28.
Since the variable x appears on both sides of the given equation, we need to
bring one of the variable terms to the other side. And, since there are numeral
terms on both sides, we need to bring one of them to the other side. It is usually
preferable (although not absolutely necessary) to move the smaller coefficient of
the variable terms to the larger. So, we should subtract 14x from both sides of
the equation to handle the variable terms and add 8 to both sides of the equation
to handle the numeral terms. These actions result in the one-step equation:
10x = –20. Dividing both sides of the transformed equation by 10, we obtain
the final solution: x = –2.
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Tutorial 1.6 Solve multi-step inequalities in one variable.

We can apply the strategies of solving multi-step equations to solve multi-step inequalities…especially
since the only difference between these number sentences is the relationship symbols used. Equations
will always use the “is equal to” (=) sign while inequalities will use one of these comparison signs:
< …which is read: “is less than”

> …which is read: “is greater than”
≤ …which is read: “is less than or equal to”
≥ …which is read: “is greater than or equal to”
≠ …which is read: “is not equal to”
example 1.6a Solve this inequality: 8x + 3 < 27
8 x 24
8x + 3 < 27 → 8x + (3 – 3) < (27 – 3) → 8x < 24 → < →x<3
8 8
This inequality can be solved in just two-steps by:
1. Subtracting 3 from both sides…resulting in: 8x < 24.
2. Dividing both sides by 8…resulting in: x < 3.
NOTE: Any value less than 3 would be considered a correct solution.
example 1.6b Solve this inequality: 5x – 3 > 32
5 x 35
5x – 3 > 32 → 5x + (–3 + 3) > (32 + 3) → 5x > 35 → > →x>7
5 5

1. Adding 3 to both sides…resulting in: 5x > 35.
2. Dividing both sides by 5…resulting in: x > 7.
NOTE: Any value greater than 7 would be considered a correct solution.
example 1.6c Solve this inequality: 3(3x + 5) ≤ 24

3(3x + 5) ≤ 24 → (3)(3x) + (3)(5) ≤ 24 → 9x + 15 £ 24 →
9x 9
9x + (15 – 15) £ (24 – 15) → 9x £ 9 → ≤ →x≤1
9 9
Since this inequality contains a set of parentheses, we need to apply the

Distributive Property…resulting in: 9x + 15 ≤ 24. Now we have a two-step
inequality that can be solved by following these steps:
1. Subtracting 15 from both sides…resulting in: 9x ≤ 9.
2. Dividing both sides by 9…resulting in: x ≤ 1.
22
NOTE: Any value that is less than or equal to 1 would be considered a

solution.
example 1.6d Solve this inequality: 4(9x – 4) ≠ 56
4(9x – 4) ≠ 56 → (4)(9x) + (4)(–4) ≠ 56 → 36x – 16 ≠ 56 →

36 x 72
36x + (–16 + 16) ≠ (56 + 16) → 36x ≠ 72 → ≠ →x≠2
36 36
Since this inequality contains a set of parentheses, we need to apply the

Distributive Property…resulting in: 36x – 16 ≠ 56. Now we have a two-step
inequality that can be solved by following these steps:
1. Adding 16 to both sides…resulting in: 36x ≠ 72.

2. Dividing both sides by 36…resulting in: x ≠ 2.
NOTE: Any value other than 2 would be considered a correct solution.
Whenever we multiply or divide by a negative number in the solution of an inequality, we must “flip”
the given relationship…so that < (is less than) will become > (is greater than) or vice-versa. The same
thing would happen when the relationship symbol was an = (is equal to) or a ≠ (is not equal to)…but,
when we flip these symbols we don’t see any physical change.
example 1.6e Solve this inequality: –5x + 8 ≥ 68
−5 x 60
5x + 8 ≥ 68 → –5x + (8 – 8) ≥ (68 – 8) → –5x ≥ 60 → ≤ → x ≤ –12
−5 −5
1. Subtracting 8 from both sides…resulting in: –5x ≥ 60.

2. Dividing both sides by –5…resulting in: x ≤ –12. Since we divided
both sides by a negative, the relationship symbol had to be “flipped”
from ≥ to ≤ .
NOTE: Any number value that is less than or equal to –12 would be
considered a correct solution.
23
x
example 1.6f Solve this inequality: 8 – ≤6
5
x x −x
8– ≤ 6 → (8 – 8) – ≤ (6 – 8) → ≤ –2 →
5 5 5
 −x  5 
 5   1  ≤ (–2)( –5) → x ≥ 10
  
x
1. Subtracting 8 from both sides…resulting in: – ≤ –2.
5
2. Multiplying both sides by –5…resulting in: x ≥ 10. Since we multiplied

both sides by a negative, the relationship symbol had to be “flipped” from
≤ to ≥ .
NOTE: Any number value that is greater than or equal to 10 would be considered
a correct solution.

Tutorial 1.7 Graph the solution of multi-step equations or inequalities (in one
variable) on a number line.
Occasionally, we will need to graph the solutions to a linear equation or inequality on a number line.
How we do this depends on the relationship symbol used in the given number sentence. In general,
solve each given number sentence so that the variable is on the left of the solution sentence and then
use the relationship symbol to determine how the solution graph will look. If the reference value is
included within the solution set, we need to use a solid dot and if the reference value is not included in
the solution set, we need to use an open dot.
example 1.7a Graph the solution on a number line: 45 – 13x = 19
45 – 13x = 19 → (45 – 45) – 13x = (19 – 45) → –13x = –26 →

−13 x −26
= →x=2
−13 −13
This equation can be solved by:
1. Subtracting 45 from both sides…resulting in: –13x = –26.

2. Dividing both sides by –13…resulting in: x = 2.
3. Since just +2 is the only number value that will satisfy the given
equation, we just need to place a solid dot on +2 as shown below:
example 1.7b Graph the solution on a number line: 16x – 55 < –7
16x – 55 < –7 → 16x + (–55 + 55) < (–7 + 55) → 16x < 48 → 16 x < 48 → x < 3
16 16
This inequality can be solved by:
1. Adding 55 to both sides…resulting in: 16x < 48.

2. Dividing both sides by 16…resulting in: x < 3.
3. Since the solution set for the given inequality is x < 3, we need to place an
open dot on +3 and an arrow going to the left (the same direction that the
relationship symbol points) from the open dot as shown below:
25
example 1.7c Graph the solution on a number line: 7x + 15 > –6
7 x −21
7x + 15 > –6 → 7x + (15 – 15) > (–6 – 15) → 7x > –21 → > → x > –3
7 7
1. Subtracting 15 from both sides…resulting in: 7x > –21.

2. Dividing both sides by 7…resulting in: x > –3.
3. Since the solution set for the given inequality is x > –3, we need to
place an open dot on –3 and an arrow going to the right (the same
direction that the relationship symbol points) from the open dot as
shown below:
example 1.7d Graph the solution on a number line: 11 ≤ 2x + 25
11 ≤ 2x + 25 → (11 – 25) ≤ 2x + (25 – 25) → –14 ≤ 2x →

−14 2 x
≤ → –7 ≤ x → x ≥ –7
2 2
1. Subtracting 25 from both sides…resulting in: –14 ≤ 2x.

2. Dividing both sides by 2…resulting in: –7 ≤ x.
3. We need to have the variable on the left-hand side of the solution. So,
we need to graph: x ≥ –7…meaning that we need to place a solid dot
on –7 and an arrow going to the right (the same direction that the
relationship symbol points) from the solid dot as shown below:
26
example 1.7e Graph the solution on a number line: 10 – 4x ≥ –14
−4 x −24
10 – 4x ≥ –14 → (10 – 10) – 4x ≥ (–14 – 10) → –4x ≥ –24 → ≥ →x≤6
−4 −4
1. Subtracting 10 from both sides…resulting in: –4x ≥ –24.

2. Dividing both sides by –4…resulting in: x ≤ 6.
3. Since the solution set for the given inequality is x ≤ 6, we need to
place a solid dot on +6 and an arrow going to the left (the same
direction that the relationship symbol points) from the solid dot as
shown below:
example 1.7f Graph the solution on a number line: 8x – 3 ≠ 21
8 x 24
8x – 3 ≠ 21 → 8x + (–3 + 3) ≠ (21 + 3) → 8x ≠ 24 → ≠ →x≠3
8 8
1. Adding 3 to both sides…resulting in: 8x ≠ 24.

2. Dividing both sides by 8…resulting in: x ≠ 3.
3. Since the solution set for the given inequality is x ≠ 3, we need to
place an open dot on +3 and 2 arrows (one to the left and one to the
right) from the open dot as below:
27
Tutorial 1.8 Graph a line that passes through two given points.
To graph a line that passes through two given points, we must first plot the given points as described
by the ordered pairs. Every ordered pair (x, y) refers to a specific movement on the coordinate grid
(sometimes called a Cartesian Plane). The first number in the ordered pair (sometimes called the abscissa)
indicates a horizontal movement from the origin (0, 0) which is the point at which the two perpendicular
number lines that define the coordinate grid intersects each other. The second number in the ordered
pair (sometimes called the ordinate) indicates a vertical movement from the desired horizontal position.
The two perpendicular number lines divide the coordinate plane into four quadrants (sections) that are
designated as shown in the diagram below:
• Any point in the first quadrant (Q1) has a positive x and a positive y.
4 4 • Any point in the second quadrant (Q2) has a negative x and a positive y.
±
• Any point in the third quadrant (Q3) has a negative x and a negative y.
4 4
• Any point in the fourth quadrant (Q4) has a positive x and a negative y.
±± ± • Any point on the x-axis (the horizontal number line) has a y of zero (0).
• Any point on the y-axis (the vertical number line) has an x of zero (0).
example 1.8a Graph the line that passes through P = (–4, –2) & Q = (2, 4)
1. Plot point P = (–4, –2) by moving 4 units to the left of
the origin (0, 0) and then 2 units down. Make a mark

at this position. (See the blue point located in the third
4
quadrant.)

2. Plot point Q = (+2, +4) by moving 2 units to the right

of the origin (0, 0) and then 4 units up. Make a mark 3
at this position. (See the blue point located in the first

quadrant.)

3. Connect the two plotted points with a nice long straight
line that extends to the outer portion of the coordinate
grid. (The red line is the desired result that passes
through the given points.)
28
example 1.8b Graph the line that passes through P = (–6, 4) & Q = (6, –2)
1. Plot point P = (–6, +4) by moving 6 units to the left of
the origin (0, 0) and then 4 units up. Make a mark at this

3 ±
position. (See the blue point located in the second quadrant.)
2. Plot point Q = (+6, –2) by moving 6 units to the right of

the origin (0, 0) and then 2 units down. Make a mark at this

position. (See the blue point located in the fourth quadrant.)
4 ±


example 1.8c Graph the line that passes through P = (–4, 0) & Q = (0, –4)
1. Plot point P = (–4, 0) by moving 4 units to the left of

the origin (0, 0) but then not making any vertical move.

Make a mark at this position. (See the blue point located
on the left-hand portion of the horizontal axis.)

3

2. Plot point Q = (0, –4) by not moving horizontally from
4
the origin (0, 0) but then making a vertical move of 4

units down. Make a mark at this position. (See the blue

point located on the lower portion of the vertical axis.)

example 1.8d Graph the line that passes through P = (0, 4) & Q = (4, 0)
1. Plot point P = (0, +4) by not moving horizontally from

the origin (0, 0) but then making a vertical move of 4

units up. Make a mark at this position. (See the blue point
3
located on the upper portion of the vertical axis.)

2. Plot point Q = (+4, 0) by moving 4 units to the right of 4

the origin (0, 0) but then not making any vertical move.
Make a mark at this position. (See the blue point located

on the right-hand portion of the horizontal axis.)

grid. (The red line is the desired result that passes through
the
Download given
free points.)
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29
Tutorial 1.9 Graph a linear equation using its x- and y-intercepts.

The x-intercept of a linear equation is the point where its graphed line will cross the horizontal (x) axis.
All x-intercepts are similar in that the ordinates are zero (0). Thus, the coordinate of an x-intercept takes
the form of: (x, 0).
The y-intercept of a linear equation is the point where its graphed line will cross the vertical (y) axis.
All y-intercepts are similar in that the abscissas are zero (0). Thus, the coordinate of a y-intercept takes
the form of: (0, y).
To use the x- and y-intercepts to graph a linear equation, determine the ordered pairs (coordinates) for
the points of intersection on each of the axes of the coordinate grid. Plot these calculated points. Use
these points to draw the desired linear graph.
example 1.9a Graph on a coordinate grid: 4x – 3y = 12
1. Determine the x-intercept by replacing the y in the given
equation with zero (0) and solving the equation for x:

4x – 3y = 12 → 4x – 3(0) = 12 → 4x = 12 → x = 3
x-intercept = (3, 0)
2. Plot the calculated x-intercept on the coordinate grid by

moving 3 units to the right of the origin (0, 0) but then

not making any vertical move. (See the blue point located


3. Determine the y-intercept by replacing the x in the given
equation with zero (0) and solving the equation for y:

4x – 3y = 12 → 4(0) – 3y = 12 → –3y = 12 → y = –4 → y-intercept = (0, –4)
4. Plot the calculated y-intercept on the coordinate grid by not moving horizontally from the
origin (0, 0) but then making a vertical move of 4 units down. (See the blue point located on
the lower portion of the vertical axis.)
5. Connect the two plotted points with a nice long straight line that extends to the outer
portion of the coordinate grid. (The red line is the desired result that passes through the
given points.)
30
example 1.9b Graph on a coordinate grid: 2x + 4y = 8
1. Determine the x-intercept by replacing the y in the given

equation with zero (0) and solving the equation for x:
2x + 4y = 8 → 3x + 4(0) = 8 → 2x = 8 → x = 4
x-intercept = (4, 0)

2. Plot the calculated x-intercept on the coordinate grid by

moving 4 units to the right of the origin (0, 0) but then

not making any vertical move. (See the blue point located

3. Determine the y-intercept by replacing the x in the given
equation with zero (0) and solving the equation for y:

2x + 4y = 8 → 2(0) + 4y = 8 → 4y = 8 → y = 2 → y-intercept = (0, 2)
4. Plot the calculated y-intercept on the coordinate grid by not moving horizontally from the
origin (0, 0) but then making a vertical move of 2 units up. (See the blue point located on
the upper portion of the vertical axis.)
5. Connect the two plotted points with a nice long straight line that extends to the outer
portion of the coordinate grid. (The red line is the desired result that passes through the
given points.)
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Tutorial 1.10 Graph a linear equation (in slope-intercept form) using its slope and
y-intercept.
Linear equations can be expressed using two different formats:
• Slope-Intercept form (y = mx + b) where the m represents the slant (slope; rise over run)
and b represents the y-intercept of the graphed line.
• Standard form (Ax + By = C) where A represents any non-negative integer while B and C
represent any integers.
ULVH YHUWLFDO Y
VORSH
UXQ KRUL]RQWDO K
When a linear equation is formatted in its slope-intercept format, the b value that is being added or
subtracted from the x term can be rewritten into coordinates of: (0, b). As done previously, we can use
this point to graph the linear equation. The coefficient (value in front) of the x will aid us in determining
a second point to be used in our graphing task. The numerator (top value) of a fractional slope indicates
the rise (vertical movement) that the desired line will take while the denominator (bottom value) indicates
the run (horizontal movement). A second plot point can be calculated by: (0 + h, b + v)
3
example 1.10a y
Use the slope and the y-intercept to graph:= x+5
4
1. Plot the y-intercept (0, 5) on the coordinate grid by not

moving horizontally from the origin (0, 0) but then

making a vertical move of 5 units up. (See the blue point E

2. Use the fractional slope to determine the needed vertical
(rise) and horizontal (run) moves off of the y-intercept.

For this example, we will need to move 3 units up and 4

units to the right from the y-intercept of (0, 5). Make a

mark at this position: (0 + 4, 5 + 3) or (4, 8). (See the blue
point located in the first quadrant.)
3. Connect the y-intercept point with the point that was determined after the “rise over run”
movements (in step #2) with a nice long straight line that extends to the outer portion of
the coordinate grid. (The red line is the graph of the given equation that passes through the
y-intercept and the second point determined by the “rise over run” movements.)
32
3
example 1.10b Use the slope and the y-intercept to graph: y= 7 − x
2
E
making a vertical move of 7 units up. (See the blue point


For this example, we will need to move 3 units down and

2 units to the right from the y-intercept of (0, 7). Make a

mark at this position: (0 + 2, 7 – 3) or (2, 4). (See the blue
point located in the first quadrant.)
example 1.10c Use the slope and the y-intercept to graph: y = 2x – 4
1. Plot the y-intercept (0, –4) on the coordinate grid by
not moving horizontally from the origin (0, 0) but then

making a vertical move of 4 units down. (See the blue
point located on the lower portion of the vertical axis.)


E

unit to the right from the y-intercept of (0, –4). Make a

mark at this position: (0 + 1, –4 + 2) or (1, –2). (See the
blue point located in the fourth quadrant.)
33
Tutorial 1.11 Graph a linear equation (in standard form) using its slope and
y-intercept.
The easiest way to graph a linear equation when it is presented in its standard form (Ax + By = C) is
to use its x- and y-intercepts as we did in a previous tutorial. However, there may be times when the
x-intercept is not easily plotted. Therefore, another way to graph a standard form equation is to convert
it into its slope- intercept form (y = mx + b).
example 1.11a Use the slope and the y-intercept to graph: 4x + 3y = 12
Using the axis intercepts for this equation, we can see that the x-intercept is (3, 0) while the y-intercept
is (0, 4). So, this equation can be easily graphed using these points. However, let’s use the slope-intercept
conversion so that we can compare methods. To rewrite the given standard form equation into its slope-
intercept format:
1. Subtract 4x from both sides of the equation: 4x + 3y = 12 → 3y = 12 – 4x

2. Divide both sides of the equation by 3: 3y = 12 – 4x → y = (12⁄₃) – (⁴⁄₃)(x) = 4 – (⁴⁄₃)(x)
3. Reformat the equation into proper slope-intercept format: y = 4 – (⁴⁄₃)(x) → y = (–⁴⁄₃)(x) + 4
We can see from our result of this step that the y-intercept of this given equation is (0, 4)
and the fractional slope is –⁴⁄₃. Now, graph the given equation using its slope-intercept form.
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AxA globAl grAduAte
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E
making a vertical move of 4 units up. (See the blue
point located on the upper portion of the vertical axis.)

5. Use the fractional slope to determine the needed

vertical (rise) and horizontal (run) moves off of the

y-intercept. For this example, we will need to move 4

units down and 3 units to the right from the y-intercept

of (0, 4). Make a mark at this position: (0 + 3, 4 – 4) or
(3, 0).
Although completing the standard form to slope-intercept form conversion steps is not that difficult
for just one problem, it becomes time-consuming if we are attempting to graph several standard form
equations. Therefore, let’s see if we can derive an algebraic short-cut:
$[ %\ & given: standard form

±$[ ±$[ Subtract Ax from both sides of the equation.
%\ & ±$[
%\ & $[ & $[
Divide both sides of the equation by B.
% % % %
$[ & Reformat the equation into proper slope-intercept format.
\
% % result: slope-intercept format
For every linear equation expressed in its standard form (Ax + By = C):
–A C
The slope of the given equation is: while the y-intercept of the given equation is: .
B B
example 1.11b Use the slope and the y-intercept to graph: 2x – 4y = 8
1. From the given equation we can see that: C = 8, B = –4.
Thus, the y-intercept of this line will be:

C 8
= = −2
B −4
2. Plot the y-intercept (0, –2) on the coordinate grid by not moving horizontally from the
origin (0, 0) but then making a vertical move of 2 units down. (See the blue point located on
the lower portion of the vertical axis.)
35
3. From the given equation we can see that: A = 2, B = –4. Thus, the slope will be:
− A −2 1
= =
B −4 2
4. Use the fractional slope to determine the needed
vertical (rise) and horizontal (run) moves off of the

y-intercept. For this example, we will need to move 1
units up and 2 units to the right from the y-intercept of

(0, –2). Make a mark at this position: (0 + 2, –2 + 1) or E

(2, –1).
5. Connect the y-intercept point with the point that was

determined after the “rise over run” movements (in

step #4) with a nice long straight line that extends to
the outer portion of the coordinate grid. (The red line
is the graph of the given equation that passes through
the y-intercept and the second point determined by the
“rise over run” movements.)
example 1.11c Use the slope and the y-intercept to graph: 3y – 4x = 12
C 12
1. From the given equation: C = 12, B = 3. Thus, the y-intercept will be: = = 4
B 3

making a vertical move of 4 units up. (See the blue point
E

3. From the given equation we can see that: A = –4, B = 3.
−A −(−4) 4
Thus, the slope of this line will be:= =
B 3 3


units to the right from the y-intercept of (0, 4). Make a
mark at this position: (0 + 3, 4 + 4) or (3, 8).
36
Tutorial 1.12 Determine the slope of a line passing through 2 points.

We’ve seen how to use the slope to graph a linear equation…but…let’s take a deeper look into the concept
of the slope or slant of a line. A line graphed on a coordinate grid can have one of four possible slants
(slope) as seen in the diagrams below:

GLDJUDP GLDJUDP GLDJUDP GLDJUDP
SRVLWLYHVORSH QHJDWLYHVORSH ]HURVORSH XQGHILQHGVORSH
• It can be higher on its right side than its left and will then have a positive slope (diagram
#1).
• It can be lower on its right side than its left and will then have a negative slope (diagram
#2).
• It can run horizontally (where the right and left sides are on the same level and the graphed
line is parallel to the x-axis) and will then have a slope of zero (diagram #3).

• It can run vertically (where the top and the bottom portions are on the same level and the
graphed line is parallel to the y-axis) and will then have a slope that is undefined (diagram
#4).
The slant of any graphed line is determined by the (x, y) coordinates that are either given or are derived
by a companion linear equation. So, let’s take a look at the coordinate sets that might produce each of
the diagrams above.
For diagram #1:

[ \

± ± ± ±

± ± ± ±
±± ± ± ± ±
±±± ± ± ± ±± ±
±±± ± ± ± ±±± ±

Notice that for diagram #1 each successive ordinate (y) has a common difference of –4 and that each
successive abscissa (x) has a common difference of –4. To go from point to point we would need to “rise”
–4 units (which means go down 4 units) and then “run” –4 units (which means go to the left). Thus, the
rise −4
slope (slant) for this line is: slope = = = +1
run −4
For diagram #2:

[ \
±

±±± ± ± ±

±± ± ±
± ± ±
± ± ±± ±
± ± ±±± ±

Notice that for diagram #2 each successive ordinate (y) has a common difference of –4 and that each
successive abscissa (x) has a common difference of +4. To go from point to point we would need to “rise”
–4 units (which means go down 4 units) and then “run” 4 units to the right. Thus, the slope (slant) for
this line is: slope = rise = −4 = −1
run +4
38
For diagram #3:

[ \
± ±
±±± ± ± ±±±
±±± ± ± ±±±
±± ± ±±±

± ± ±±±

± ± ±±±

± ± ±±±

Notice that for diagram #3 each successive ordinate (y) has a common difference of zero (0) and that
each successive abscissa (x) has a common difference of +4. To go from point to point we would need
to “rise” zero (0) units (which means not to rise at all) and then “run” 4 units to the right. Thus, the line
rise 0
is completely horizontal and its slope is: slope = = = zero
run +4
For diagram #4:

[ \
±
±±± ± ±
±±± ± ±
±±± ± ±

±±± ± ± ±±

±±± ± ± ±±±

±±± ± ± ±±±

Notice that for diagram #4 each successive ordinate (y) has a common difference of +4 and that each
successive abscissa (x) has a common difference of zero (0). To go from point to point we would need
to “rise” +4 units (which means go up 4 units) and then “run” zero (0) units (which means not to run
rise +4
at all). Thus, the line is completely vertical and its slope is: slope = = = undefined
run 0
As we can see from the four sets of coordinates that produced the graphed lines in diagrams #1–4:
rise difference of ordinates

slope = =
run difference of abscissas
Further, it makes no difference which two ordered pairs are used or in what order these ordered pairs
are considered…the ratio of “rise over run” will remain the same. For example, suppose we take any
two coordinates listed for each line:
39
GLDJUDP GLDJUDP GLDJUDP GLDJUDP

±± ± ± ±± ± ±±
ULVH ULVH ULVH ULVH

UXQ UXQ UXQ UXQ
±RU± ±RU± ±RU± ±RU±
ULVH ULVH ULVH ULVH

UXQ UXQ UXQ UXQ
VORSH VORSH ± VORSH VORSH XQGHILQHG
So, we can generalize the process of determining the slope of any line given two points by:
rise difference of ordinates y1 − y2 y − y1

slope = = = or 2
run difference of abscissas x1 − x2 x2 − x1
example 1.12a Find the slope through: P = (–3, –2), Q = (2, 3)
rise −2 − 3 −5 rise 3 − (−2) 5

= = = +1 –or– = = = +1 → slope = +1
run −3 − 2 −5 run 2 − (−3) 5
example 1.12b Find the slope through: P = (–5, 4), Q = (5, –2)
rise 4 − (−2) 6 rise −2 − 4 −6 −6 −3

= = = =
–or– → slope = =
run −5 − 5 −10 run 5 − (−5) 10 10 5
example 1.12c Find the slope through: P = (–3, 4), Q = (–3, –4)
rise 4 − (−4) 8 rise −4 − 4 −8

= = = =
–or– → slope = undefined
run −3 − (−3) 0 run −3 − (−3) 0
example 1.12d Find the slope through: P = (3, –4), Q = (–3, –4)
rise −4 − (−4) 0 rise −4 − (−4) 0

= = = 0 –or– = = = 0 → slope = zero (0)
run 3 − (−3) 6 run −3 − 3 −6
40
Tutorial 1.13 Use the slope-intercept formula to write the equation of a line with a
given slope and point.
If we know the slope and the y-intercept of a linear equation, we can easily write the slope-intercept
(y = mx + b) form of the desired equation…
example 1.13a Write the slope-intercept equation for the line that has the given slope and
passes through the given point: slope = –2, P = (0, 3)
Since we know the slope, we know that m = –2…and, since we know the y-intercept, we know (0, b)
and that b = 3. All we need to do is to substitute these values into the slope-intercept (y = mx + b) form
of the equation: y = mx + b → y = –2x + 3 → equation: y = –2x + 3
example 1.13b Write the slope-intercept equation for the line that has the given slope and
passes through the given point: slope = 3 , P = (0, –5)
4
Since we know the slope, we know that m = 3 4 = 0.75…and, since we know the y-intercept, we know
(0, b) and that b = –5. All we need to do is to substitute these values into the slope-intercept (y = mx +
b) form of the equation: y = mx + b → y = (0.75)(x) + –5 → equation: y = 0.75x – 5
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If we know the slope and a point that is not a y-intercept, we can still use the slope-intercept (y = mx + b)
format to write the desired equation…
example 1.13c Write the slope-intercept equation for the line that has the given slope and
passes through the given point: slope = ⅔, P = (3, 2)
Since we know the slope, we know that m = …and, since we know a point through which the graphed
line will pass, we know (x, y) and that x = 3 when y = 2. All we need to do is substitute these values into
the slope-intercept (y = mx + b) form of the equation to solve for the value of b:
y = mx + b → 2 = ( 2 3 )(3) + b → b = 2 – ( 2 3 )(3) = 2 – 2 = 0
With the value of b = 1 and the value of m = 2 3 , we can write the slope-intercept form of the equation:
2
y = ( 2 3 )(x) + 0 → equation: y = x
3
example 1.13d Write the slope-intercept equation for the line that has the given slope and
passes through the given point: slope = 0, P = (1, 2)
Since we know the slope, we know that m = 0…and, since we know a point through which the graphed
line will pass, we know (x, y) and that x = 1 when y = 2. All we need to do is substitute these values into
the slope-intercept (y = mx + b) form of the equation to solve for the value of b:
y = mx + b → 2 = (0)(1) + b → b = 2 – (0)(1) = 2 – 0 = 2
With the value of b = 2 and the value of m = 0, we can write the slope-intercept form of the equation:
y = (0)(x) + 2…or, simply: y = 2. (NOTE: Since the slope was zero, the graphed line will be horizontal.
Any horizontal line graphed on a coordinate grid will have the general equation of: y = b.)
example 1.13e Write the slope-intercept equation for the line that has the given slope and
passes through the given point: slope = undefined, P = (–3, –1)
When the slope of the line is undefined, we cannot really use the slope-intercept formula to determine
the desired equation. Since we know that the slope is undefined, we know that the difference of the
abscissas is zero (0)…which means that the y-values of all graphed points are identical. And, since the
slope is undefined, the graphed line will be vertical. Any vertical line graphed on a coordinate grid will
have the general equation of: x = N (which is the given abscissa value). So, for this particular example,
the equation is: x = –3
42
Tutorial 1.14 Use the point-slope formula to write the slope-intercept form of an
equation of a line given its slope and a point.
Another way to obtain the slope-intercept (y = mx + b) form of an equation is to work with the point-
slope formula which is derived from the slope formula:
y2 − y1
slope
= m
= → point-slope format: y2 – y1 = m(x2 – x1)
x2 − x1
example 1.14a Write a slope-intercept equation for the line that has the given slope and
Since we know the slope, we know that m = –2…and, since we know a point through which the graphed
line will pass, we know (x, y) and that x1 = 0 when y1 = 3. All we need to do is substitute these values
into the point-slope formula and make sure that the final equation is in its slope-intercept format:
y – y1 = m(x – x1) → y – 3 = –2(x – 0) → y = –2(x – 0) + 3 = –2x + 0 + 3 → equation: y = –2x + 3
example 1.14b Write a slope-intercept equation for the line that has the given slope and
passes through the given point: slope = 3 4 , P = (0, –5)
Since we know the slope, we know that m = 3 4 = 0.75…and, since we know a point through which the
graphed line will pass, we know (x, y) and that x1 = 0 when y1 = –5. All we need to do is substitute these
values into the point-slope formula and make sure that the final equation is in its slope-intercept format:
y – y1 = m(x – x1) → y – (–5) = (0.75)(x – 0) → y + 5 = (0.75)(x – 0)

y = (0.75)(x – 0) – 5 = (0.75)(x) + 0 – 5 → equation: equation: y = 0.75x – 5
example 1.14c Write a slope-intercept equation for the line that has the given slope and
passes through the given point: slope = 2 3 , P = (3, 2)
Since we know the slope, we know that m = 2 3 …and, since we know a point through which the graphed
line will pass, we know (x, y) and that x1 = 3 when y1 = 2. All we need to do is substitute these values
into the point-slope formula and make sure that the final equation is in its slope-intercept format:
y – y1 = m(x – x1) → y – 2 = ( 2 3 )(x – 3) → y = ( 2 3 )(x – 3) + 2
2
y = ( 2 )(x) – 2 + 2 = ( 2 3 )(x) + 0 → equation: y = x
3 3
43
example 1.14d Write a slope-intercept equation for the line that has the given slope and
passes through the given point: slope = 0, P = (1, 2)
Since we know the slope, we know that m = 0…and, since we know a point through which the graphed
line will pass, we know
(x, y) and that x1 = 1 when y1 = 2. All we need to do is substitute these values into the point-slope formula
and make sure that the final equation is in its slope-intercept format:
y – y1 = m(x – x1) → y – 2 = (0)(x – 1) → y = (0)(x – 1) + 2 = 0x + 0 + 2 = 2 → equation: y = 2
example 1.14e Write a slope-intercept equation for the line that has the given slope and
passes through the given point: slope = undefined, P = (–3, –1)
When the slope of the line is undefined, we cannot really use the point-slope formula to determine the
desired equation. Since we know that the slope is undefined, we know that the difference of the abscissas
is zero (0)…which means that the y-values of all graphed points are identical. And, since the slope is
undefined, the graphed line will be vertical. Any vertical line graphed on a coordinate grid will have the
general equation of: x = N (which is the given abscissa value). Thus, the equation for is: x = –3
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Tutorial 1.15 Write the standard form of an equation of a line given its slope and a
point.
Although the slope-intercept (y = mx + b) form is used most often when using graphing technology,
there may be times when we want to express the desired equation in its standard (Ax + By = C) form.
We can accomplish this desired format in one of three ways:
• Reformat the slope-intercept (y = mx + b) form into standard (Ax + By = C) form.

• Reformat the point-slope (y2 – y1 = m(x2 – x1)) form into standard (Ax + By = C) form.
• Use the slope and some arithmetic to determine the standard (Ax + By = C) form.
example 1.15a Write a slope-intercept equation for the line that has the given slope and
method #1: reformatting the slope-intercept form…
Since all of the values in the slope-intercept (y = mx + b) form of the equation are integers, just rearrange
the terms so that the x and y terms are on the left-hand side of the equation while the non-variable term
is on the right-hand side.
slope = –2 and P = (0, 3) → slope-intercept: y = –2x + 3

Adding 2x to both sides of the equation, we get: 2x + y = 3
method #2: reformatting the point-slope form…
1. Use the point-slope format to structure an equation:

y – y1 = m(x – x1) → y – 3 = –2(x – 0) → y = –2(x – 0) + 3 = –2x + 0 + 3 = –2x + 3 → y = –2x + 3
Adding 2x to both sides of the equation, we get: 2x + y = 3
method #3: using the slope…
Since the slope of any linear equation is –A/B and the slope for this example is –2, we know that A = 2
when B = 1. Since the given point is (0, 3), we know that x = 0 when y = 3. Using all of this information,
we can determine the value of C in the standard (Ax + By = C) form of the desired equation:
(A)(x) + (B)(y) = C → C = (2)(0) + (1)(3) = 0 + 3 = 3 → equation is: 2x + y = 3
45
example 1.15b Write a slope-intercept equation for the line that has the given slope and
passes through the given point: slope = 3 4 , P = (0, –5)
The slope and the y-intercept is given:
slope = 3 4 and P = (0, –5) → slope-intercept: y = ( 3 )(x) – 5

4
Since the slope value in the slope-intercept (y = mx + b) form of the equation is not an integer, we need
to multiply the entire equation through by the denominator of the slope…for this example, that would
be 4. After multiplying both sides of the equation by 4, we get the transformed equation: 4y = 3x – 20.
We can now rearrange the terms so that the x and y terms are on the left-hand side of the equation
while the non-variable term is on the right-hand side. Subtracting 3x from both sides of the transformed
equation, we get: –3x + 4y = –20. However, recall that in standard form, the value of A should be
positive…therefore, we need to multiply the entire equation by –1…which results in: 3x – 4y = 20.
method #2: eformatting the point-slope form…

y – y1 = m(x – x1) → y – (–5) = ( 3 4 )(x – 0) → y + 5 = ( 3 4 )(x – 0)
y = ( 3 4 )(x – 0) – 5 → y = ( 3 4 )(x) – 5
2. Multiply both sides of the equation by the denominator (4): 4y = 3x – 20
3. Subtract 4y from both sides of the equation: 0 = 3x – 4y – 20
4. Add 20 to both sides of the equation: 3x – 4y = 20
Since the slope of any linear equation is –A/B and the slope for this example is 3 4 , we know that A = 3
when B = –4. (NOTE: Since the A value needs to be positive, make it positive now rather than later.)
Since the given point is (0, –5), we know that x = 0 when y = –5. Using all of this information, we can
determine the value of C in the standard (Ax + By = C) form of the desired equation:
(A)(x) + (B)(y) = C → C = (3)(0) + (–4)(–5) = 0 + 20 = 20 → equation: 3x + 4y = 20
example 1.15c Write a slope-intercept equation for the line that has the given slope and
passes through the given point: slope = 2 3 , P = (3, 2)
slope = 2 3 and P = (3, 2) → y = ( 2 3 )(x) + b → 2 = ( 2 3 )(3) + b
b = 2 – ( 2 3 )(3) = 2 – 2 = 0 → y = ( 2 3 )(x)
46
Since the slope value in the slope-intercept (y = mx + b) form of the equation is not an integer, we need
to multiply the entire equation through by the denominator of the slope…for this example, that would
be 3. After multiplying both sides of the equation by 3, we get the transformed equation: 3y = 2x. We
can now rearrange the terms so that the x and y terms are on the left-hand side of the equation while
the non-variable term is on the right-hand side. Since we want 2x to be positive, subtract 3x from both
sides of the transformed equation, to get: 0 = 2x – 3y (which can also be written as: 2x – 3y = 0).
method #2: reformatting the point-slope form…

y – y1 = m(x – x1) → y – 2 = ( 2 3 )(x – 3) → y = ( 2 3 )(x – 3) + 2
y = ( 2 3 3)(x) – 2 + 2 → y = ( 2 3 )(x) + 0 → y = ( 2 3 )(x)
2. Multiply both sides of the equation by the denominator (3): 3y = 2x
3. Subtract 3y from both sides of the equation: 0 = 2x – 3y
Since the slope of any linear equation is –A/B and the slope for this example is 2/3, we know that A = 2
when B = –3. Since the given point is (3, 2), we know that x = 3 when y = 2. Using all of this information,
we can determine the value of C in the standard (Ax + By = C) form of the desired equation:
(A)(x) + (B)(y) = C → C = (2)(3) + (–3)(2) = 6 + –6 = 0 → equation: 2x – 3y = 0

Tutorial 1.16 Write the standard form of an equation of a line that passes through 2
given points.
When we are attempting to write an equation for the line that passes through two given points, we must
first calculate the slope (as we did in a previous tutorial) between the given points.
rise difference of ordinates y1 − y2 y − y1

slope = = = or 2
run difference of abscissas x1 − x2 x2 − x1
Then, we will use the calculated slope and one of the given points to determine the desired equation.
Since we have two given points, we can choose either of them to accomplish the task…it makes no
difference as to which point we choose. Depending on which format we would like to write the desired
equation, we will follow the steps as outlined in previous tutorials.
example 1.16a Write an equation that passes through: P = (5, 5), Q = (15, –5)
Just follow these basic steps:
1. Determine the slope between the given points:

rise y − y1 −5 − 5 −10
slope = = 2 = = = −1
run x2 − x1 15 − 5 10
2. Choose which of the given points to use.

3. Select the format in which to format the desired equation and complete the necessary steps
to accomplish the task.
VORSHLQWHUFHSWIRUPDW SRLQWVORSHIRUPDW VWDQGDUGIRUPDW

\ P[E \±\ P[±[ $[%\ &
VORSH ±3 VORSH ±3 VORSH ±3
P ±[ \ P ±[ \ $ % [ \
\ P[EoE \±P[ \±\ P[±[ $[%\ &
E ±± \± ±[± &
\ ±[o\ ±[ \ ±[ [\
\ ±[o\ ±[
VORSH ±4 ± VORSH ±4 ± VORSH ±4 ±
P ±[ \ ± P ±[ \ ± $ % [ \ ±
\ P[EoE \±P[ \±\ P[±[ $[%\ &
E ±±± ± \±± ±[± & ±
\ ±[o\ ±[ \ ±[± & ±
\ ±[± [\
\ ±[o\ ±[
48
example 1.16b Write an equation that passes through: P = (10, –1), Q = (–2, 2)
Just follow these basic steps:
rise y − y1 −1 − 2 −3 −1
1. Determine the slope between the given points: slope = = 2 = = =
run x2 − x1 10 − (−2) 12 4
2. Choose which of the given points to use.
3. Select the format in which to format the desired equation and complete the necessary steps
to accomplish the task.
VORSHLQWHUFHSWIRUPDW SRLQWVORSHIRUPDW VWDQGDUGIRUPDW

\ P[E \±\ P[±[ $[%\ &
P ±[ \ ± P ±[ \ ± $ % [ \ ±
\ P[EoE \±P[ \±\ P[±[ $[%\ &
E ±±± \±± ±[± & ±
E ± \ ±[± & ±
\ ±[ \ ±[± [\
\ ±[
P ±[ ±\ P ±[ ±\ $ % [ \ ±
\ P[EoE \±P[ \±\ P[±[ $[%\ &
E ±±± \± ±[ & ±
E ± \ ±[ & ±
\ ±[ \ ±[± [\
\ ±[
49
Tutorial 1.17 Determine whether the lines for a pair of equations are parallel,
perpendicular or coincide with each other.
When two linear equations are graphed on the same coordinate grid, these lines can interact with each
other in one of three ways:
• The two graphed lines can intersect each other…meeting at exactly one point. If the two
lines form right angles, they are considered perpendicular with each other…but, the lines
will still only have one point of intersection. (See diagram #1 below for an example.)
• The two graphed lines can be parallel with each other…meaning that they do not touch each
(intersect with) other at all. (See diagram #2 below for an example.)
• The two graphed lines can coincide…meaning that the lines will lie on top of each other.
Although there will be two equations, the finalized graph will look as if there was only one
line drawn. (See diagram #3 below for an example.)

7KHVHĆOLQHVĆLQWHUVHFWĆZLWKĆHDFKĆRWKHUĆ 7KHVHĆOLQHVĆDUHĆSDUDOOHOĆ 7KHVHĆOLQHVĆFRLQFLGHĆ

GLDJUDP GLDJUDP GLDJUDP
Here are the equations that produced the graphs above:
5x + 4y = 20 4x – 5y = 20 6x – 4y = 12 3x – 2y = 18 5x – 2y = 10 10x – 4y = 20
slope = –5/4 slope = 4/5 slope = 6/4 slope = 3/2 slope = 5/2 slope = 10/4
(0, y) = (0, 5) (0, y) = (0, –4) (0, y) = (0, 3) (0, y) = (0, –9) (0, y) = (0, –5) (0, y) = (0, –5)
(x, 0) = (4, 0) (x, 0) = (5, 0) (x, 0) = (2, 0) (x, 0) = (6, 0) (x, 0) = (2, 0) (x, 0) = (2, 0)
We can analyze what elements of the linear equations will produce each of the possible interactions.
Below each of the graphed equations, we have listed the slope, y-intercept and x-intercept for the graphed
lines. Notice that:
• The two graphed lines will intersect when the two slopes are not equal (diagram #1).
• The two graphed lines will be perpendicular to each other when the two slopes are negative
reciprocals of each other…meaning that the product of the two slopes will be –1. (diagram #1)
50
• The two graphed lines will be parallel to each other when the two slopes are equal to each
other but the y-intercepts are not. (diagram #2)
• The two graphed lines will coincide when both the two slopes and the y-intercepts are equal
to each other. (diagram #3)
We can use these observations to determine whether two lines will be parallel, perpendicular, coincide
or just intersect directly from their equations. Just follow these steps:
1. Find the slope for each given equation.

2. Find the y-intercept for each given equation.
3. Use the information obtained to determine how the lines will interact with each other.

example 1.17a Determine whether these lines will be parallel, perpendicular, coincide, or
just intersect: 5x – 2y = 20
10x – 4y = 20
Follow these steps:
1. Find the slope for each given equation:

5x – 2y = 20 → m = –A/B = –5/–2 = 5/2 = 2.5
10x – 4y = 20 → m = –A/B = –10/–4 = 5/2 = 2.5
2. Find the y-intercept for each given equation:
5x – 2y = 20 → b = C/B = 20/–2 = 10 → (0, –10)
10x – 4y = 20 → b = C/B = 20/–4 = –5 → (0, –5)
3. Use the information obtained to determine how the lines will interact with each other: The
slopes are equal but the y-intercepts are not. Thus, the lines will be parallel to each other.
example 1.17b Determine whether these lines will be parallel, perpendicular, coincide, or
just intersect: 5x + 4y = 9
4
y= x+9
5
Follow these steps:

5x + 4y = 9 → m = –A/B = –5/4 = –1.25
y = (4/5)x + 9 → m = 4/5 = 0.8
5x + 4y = 9 → b = C/B = 9/4 = 2.25 → (0, 2.25)
y = (4/5)x + 9 → b = 9 → (0, 9)
slopes are not equal but (–5/4)(4/5) = –1. Thus, the lines will be perpendicular to each
other.
example 1.17c Determine whether these lines will be parallel, perpendicular, coincide, or
3x + 2y = 12
Follow these steps:

6x + 4y = 24 → m = –A/B = –6/4 = –3/2 = –1.5
3x + 2y = 12 → m = –A/B = –3/2 = –1.5
52

6x + 4y = 24 → b = C/B = 24/4 = 6 → (0, 6)
3x + 2y = 12 → b = C/B = 12/2 = 6 → (0, 6)
3. Use the information obtained to determine how the lines will interact with each other: Both
the slopes and the y-intercepts are equal. Thus, the lines will coincide.
example 1.17d Determine whether these lines will be parallel, perpendicular, coincide, or
2x – y = 6
Follow these steps:

3x + 2y = 10 → m = –A/B = –3/2 = –1.5
2x – y = 6 → m = –A/B = –2/–1 = 2/1 = 2
3x + 2y = 10 → b = C/B = 10/2 = 5 → (0, 5)
2x – y = 6 → b = C/B = 6/–1 = –6 → (0, –6)
slopes are not equal and they are not negative reciprocals of each other. Thus, the lines will
intersect with each other at one specific point.
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Tutorial 1.18 Write the equation of a line through a given point that is parallel to a
given line.
For two graphed lines to be parallel to each other, they must have equal slopes but different y-intercepts.
Thus, to find the slope-intercept equation for the line that is parallel to a given line and passes through
a given point, just do these steps:
1. Determine the slope of the given line.

2. Determine the values of x and y are to be used to complete the task.
3. Verify that the given point is not a solution for the given line…otherwise, the new line will
coincide with the given line and will not be parallel to the given line.
4. Decide in what format to express the desired equation and use the given point to determine
the desired equation.
example 1.18a Write the equation for the line that is parallel to the given line and passes
through the given point: 3x + 5y = 15 P = (5, 3)
Follow these steps:
- A -3
1. Determine the slope of the given line: 3x + 5y = 15 → m = =
B 5
2. Determine the values of x and y are to be used to complete the task: (5, 3) → x = 5, y = 3
3. verification: 3(5) + 5(3) = 15 + 15 = 30 → 15 ≠ 30 → continue
4. Write the equation in its desired format:
slope-intercept format: y = mx + b standard format: Ax + By = C
b = y – mx → b = 3 – (– 3 5 )(5) = 3 + 3 = 6 slope = – 3 5 → A = 3 when B = 5
equation: y = (– 3 5 )x + 6 P = (5, 3) → x = 5 when y = 3

C = Ax + By = (3)(5) + (5)(3) = 15 + 15 = 30
equation: 3x + 5y = 30
54
example 1.18b Write the equation for the line that is parallel to the given line and passes
through the given point: 6x – 5y = 7 P = (5, –6)
Follow these steps:
1. Determine the slope of the given line: 6x – 5y = 7 → m = - A -6 6

= =
B -5 5
2. Determine the values of x and y are to be used to complete the task: (5, –6) → x = 5, y = –6
3. verification: 6(5) – 5(–6) = 30 + 30 = 60 → 7 ≠ 60 → continue

slope = 6/5 → A = 6 when B = –5
b = y – mx → b = –6 – ( 6 5 )(5) = –6 – 6 = –12
P = (5, –6) → x = 5 when y = –6
equation: y = ( 6 5 )x – 12
C = Ax + By = (6)(5) + (–5)(–6) = 30 + 30 = 60
equation: 6x – 5y = 60

Tutorial 1.19 Write the equation of a line through a given point that is
perpendicular to a given line.
For two graphed lines to be perpendicular to each other they must have slopes that are negative reciprocals
of each other…that is, the product of the two slopes must be –1. Thus, to find the slope-intercept equation
for the line that is perpendicular to a given line and passes through a given point:
1. Determine the slope of the given line.

2. Determine the negative reciprocal of the slope of the given line.
3. Determine the values of x and y are to be used to complete the task.
4. Verify that the given point is not a solution for the given line…otherwise, the new line will
coincide with the given line and will not be perpendicular to the given line.
5. Decide in what format to express the desired equation and then determine the desired
equation.
example 1.19a Write the equation for the line that is perpendicular to the given line and
passes through the given point: 3x + 5y = 15 P = (3, 10)
Follow these steps:
- A -3
1. Determine the slope of the given line: 3x + 5y = 15 → m = =
B 5
2. slope to be used: negative reciprocal of – 3 5 = + 5 3
3. Determine the values of x and y are to be used to complete the task: (3, 10) → x = 3, y = 10
4. verification: 3(3) + 5(10) = 9 + 50 = 59 → 15 ≠ 59 → continue
slope = 5/3 → A = 5 when B = –3
b = y – mx → b = –10 – ( 5 3 )(3) = 10 – 5 = 5
P = (3, 10) → x = 3 when y = 10
C = Ax + By = (5)(3) + (–3)(10) = 15 – 30 = –15
equation: y = ( 5 3 )x + 5
equation: 5x – 3y = –15
example 1.19b Write the equation for the line that is perpendicular to the given line and
passes through the given point: 6x – 5y = 7 P = (–6, 15)
Follow these steps:
-A -6 6
1. Determine the slope of the given line: 6x – 5y = 7 → m = = =
B -5 5
2. slope to be used: negative reciprocal of 6 = – 5
5 6
3. Determine the values of x and y are to be used to complete the task: (–6, 15) → x = –6, y = 15
56
4. verification: 6(–6) – 5(15) = –36 – 75 = –111 → 7 ≠ –111 → continue

slope = –5/6 → A = 5 when B = 6
b = 15 – (– 5 6 )(–6) = 15 – 5 = 10
P = (–6, 15) → x = –6 when y = 15
C = Ax + By = (5)(–6) + (6)(15) = –30 + 90 = 60
equation: y = (– 5 6 )x + 10
equation: 5x + 6y = 60
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Tutorial 1.20 Solve a system of linear equations by graphing

When we solve a system of linear equations, we are looking for the one point (ordered pair) that will be
a solution for all of the equations in the system. When we solve a system by graphing, we are looking
for the point of intersection contained in the graphs of the equations in the system. Therefore, we can
accomplish the desired task by:
1. Graph each of the equations contained within the given system on the same coordinate grid.
(Remember that we can use whatever graphing method we prefer: the x- and y-intercepts, the
slope and y-intercept, the slope and any solution point, or a full set of solution points.)
2. Determine the coordinates for the point of intersection (if it exists). This will be the solution
of the given system.
NOTE #1 If the lines do not intersect at all, then there is no solution to the system.
NOTE #2 If the lines coincide, then there are infinitely many solutions…all of the points
that lie on the graphed line(s).
Solve the given system of linear equations by graphing on a coordinate grid:

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58
Tutorial 1.21 Solve a system of linear equations by substitution.

Although solving a system of equations by graphing is not that difficult, not too many people walk around
with graph paper. So, an algebraic solution method might be preferable. One such algebraic method is
using substitution…where one of the variables (either x or y) is replaced with a value and/or an expression
containing the remaining variable. The goal here is to work with an equation that contains only one
variable rather than two. Basically, just follow these steps to solve a system of equations by substitution:
1. Solve one of the given equations (no difference which one) for one of the variables (again,
no difference which one).
2. Replace the result from step #1 into the second equation…solving the second equation for
the remaining variable.
3. Take the answer from step #2 and substitute back into the first equation to find the value of
the second variable.
4. Form the solution for the system by putting the values into an ordered pair (x, y).
5. Check the proposed solution ordered pair by substituting the values into each of the given
equations.
example 1.21a Solve the given system of linear equations through algebraic substitution:
3x = 12 4x – 3y = 10
1. 3x = 12 → x = 12 ÷ 3 = 4 (For this example, the solution is a value rather than an

expression.)
2. 4x – 3y = 10 → 4(4) – 3y = 10 → 16 – 3y = 10 → –3y = 10 – 16 = –6 → y = –6 ÷ –3 = 2
3. No need to complete step #3 for this particular example since we already know the value of
x (as determined in step #1) as well as the value of y (as determined in step #2).
4. system solution: x = 4, y = 2 → (4, 2)
5. 3x = 12 → x = 4 → 3(4) = 12…passed 1st test
6. 4x – 3y = 10 → x = 4, y = 2 → 4(4) – 3(2) = 16 – 6 = 10…passed 2nd test
example 1.21b Solve the given system of linear equations through algebraic substitution:
x + 3y = 3 3x – 2y = 31
1. x + 3y = 3 → x = 3 – 3y (For this example, the solution is an expression in terms of y.)

2. 3x – 2y = 31 → 3(3 – 3y) – 2y = 31 → 9 – 9y – 2y = 31 → 9 – 11y = 31 →
–11y = 31 – 9 = 22 → y = 22 ÷ –11 = –2
3. x + 3y = 3 → y = –2 → x + 3(–2) = 3 → x – 6 = 3 → x = 3 + 6 = 9
4. system solution: x = 9, y = –2 → (9, –2)
5. x + 3y = 3 → x = 9, y = –2 → (9) + 3(–2) = 9 – 6 = 3…passed 1st test
3x – 2y = 31 → x = 9, y = –2 → 3(9) – 2(–2) = 27 + 4 = 31…passed 2nd test
59
example 1.21c Solve the given system of linear equations through algebraic substitution:
4x – y = –23 2x + 3y = –1
1. x – y = –23 → –y = –23 – 4x → y = 23 + 4x (The solution is an expression in terms of x.)

2. 2x + 3y = –1 → 2x + 3(23 + 4x) = –1 → 2x + 69 + 12x = –1 →
14x + 69 = –1 → 14x = –1 – 69 = –70 → x = –70 ÷ 14 = –5
3. 4x – y = –23 → x = –5 → 4(–5) – y = –23 → –20 – y = –23 → –y = –23 + 20
–y = –3 → y = 3
4. system solution: x = –5, y = 3 → (–5, 3)
5. 4x – y = –23 → 4(–5) – (3) = –20 – 3 = –23…passed 1st test
2x + 3y = –1 → 2(–5) + 3(3) = –10 + 9 = –1…passed 2nd test
In some “special” cases, all of the variables will be eliminated leaving a numeric equation. When all of
360°
the variables disappear, we need to determine whether the numeric equation is a true statement or a false
.
statement. If true, then the given system has infinitely many solutions because the lines will coincide on
thinking
a coordinate grid. If false, then the given system will have no solution because the lines will be parallel
to each other and not intersect each other at all.
360°
thinking . 360°
thinking .

Discover the truth


example 1.21d Solve the given system of linear equations through algebraic substitution:
6x + 4y = 24 y = 6 – 1.5x
1. y = 6 – 1.5x (already solved for y)

2. 6x + 4y = 24 → 6x + 4(6 – 1.5x) = 24 → 6x + 24 – 6x = 24 → 24 = 24
3. This is a “special” case. The numeric statement is true. This system has infinitely many
solutions.
4. system solution: infinitely many → {(x, y) | y = 6 – 1.5x} NOTE: When there are infinitely
many solutions, we need to define the ordered pairs that will be part of the solution set by
using the given notation.
example 1.21e Solve the given system of linear equations through algebraic substitution:
10x – 4y = 20 y = 2.5x – 5
1. y = 2.5x – 5 (already solved for y)

2. 10x – 4y = 20 → 10x – 4(2.5x – 5) = 20 → 10x – 10x – 20 = 20 → –20 = 20
3. This is a “special” case. The numeric statement is false. This system has no solutions.
4. system solution: no solution
61
Tutorial 1.22 Solve a system of linear equations by elimination.

Substitution is only one of the algebraic methods to solve a system of linear equations. The second
method is an elimination process using addition and/or subtraction (which is sometimes called linear
combination). Again the goal is to work with an equation that contains only one variable rather than
two. Basically, just follow these steps to solve a system of equations by elimination:
1. Determine which of the given variables is the easiest to eliminate. (It makes no difference
which of the two variable is eliminated first.)
2. Determine the best strategy to eliminate the chosen variable. (This strategy may involve just
adding straight down, just subtracting straight down, or multiplying then adding straight
down.)
3. After applying the strategy from step #2, solve the resulting equation for its variable.
4. Using the result from step #3, substitute back into one of the original equations (no
difference which one) and solve for the remaining variable.
5. Form the solution for the system by putting the values into an ordered pair (x, y).
6. Check the proposed solution ordered pair by substituting the values into each of the given
equations.
example 1.22a Solve this system of linear equations through algebraic elimination:
2x + y = 8
5x – y = 13
1. The easiest variable to eliminate is the y. 2x + y = 8

2. Take advantage of the opposite signs in front of the y-terms and 5x – y = 13
add straight down: 7x = 21 7x = 21
7 x 21
3. Solve for x by dividing both sides by 7: = →x=3
7 7 7 x 21
=
4. Substituting back into either of the original equations, solve for y: 7 7
2x + y = 8 → 2(3) + y = 8 → y = 8 – 2(3) = 8 – 6 → y = 2 x=3
5x – y = 13 → 5(3) – y = 13 → –y = 13 – 15 = –2 → y = 2
5. solution: (3, 2)
6. Checking to make sure that this solution works for the system:
2x + y = 8 → 2(3) + (2) = 6 + 2 = 8…passed first test
5x – y = 13 → 5(3) – 2 = 15 – 2 = 13…passed second test
62
example 1.22b Solve the given system of linear equations through algebraic elimination:
x + 3y = 5
x – 5y = –3
1. The easiest variable to eliminate is the x. x + 3y = 5

2. Subtracting straight down: 8y = 8 x – 5y = –3
8y 8
3. Solve for x by dividing both sides by 7: = →y=1 x + 3y = 5
8 8
4. Substituting back into either of the original equations, solve for y: –x + 5y = 3
x + 3y = 5 → x + 3(1) = 5 → x = 5 – 3(1) = 5 – 3 → x = 2 8y = 8
x – 5y = –3 → x – 5(1) = –3 → x = –3 + 5 → x = 2
8y 8
5. solution: (2, 1) =
8 8
6. Checking to make sure that this solut.on works for the system:
x + 3y = 5 → (2) + 3(1) = 2 + 3 = 5…passed first test y=1
x – 5y = –3 → (2) – 5(1) = 2 – 5 = –3…passed second test
Occasionally, just adding or subtracting down is not enough to eliminate the desired variable. Therefore,
we will need to multiply one or both of the equations so that we convert the given system into a system
where we can just add or subtract straight down.
example 1.22c Solve the given system of linear equations through algebraic elimination:
5x + 2y = 26
x – 3y = –5
1. The easiest variable to eliminate is the x. 5x + 2y = 26

2. Needing both x coefficients to be the same number, multiply the x – 3y = –5
second equation by –5: –5(x – 3y = –5) → –5x + 15y = +25 5x + 2y = 26
3. Adding straight down: 17y = 51 –5x + 15y = 25
4. Solve for y by dividing both sides by 17: 17 y = 51 → y = 3 17y = 51
17 17
5. Substituting back into either of the original equations, solve for x: 17 y 51
5x + 2y = 26 → 5x + 2(3) = 26 → 5x = 26 – 6 = 20 → x = 4 =
17 17
x – 3y = –5 → x – 3(3) = –5 → x = –5 + 9 → x = 4
y=3
6. solution: (4, 3)
7. Substituting back into either of the original equations, solve for x:
5x + 2y = 26 → 5(4) + 2(3) = 20 + 6 = 26…passed first test
x – 3y = –5 → (4) – 3(3) = 4 – 9 = –5…passed second test
63
example 1.22d Solve the given system of linear equations through algebraic elimination:
2x – y = 9
3x + 2y = 17
1. The easiest variable to eliminate is the y. 2x – y = 9

2. Needing both y coefficients to be the same number, multiply the first 3x + 2y = 17
equation by 2: 2(2x – y = 9) → 4x – 2y = 18 4x – 2y = 18
3. Adding straight down: 7x = 35 3x + 2y = 17
7 x 35
4. Solve for x by dividing both sides by 7: = →x=5 7x = 35
7 7
7 x 35
2x – y = 9 → 2(5) – y = 9 → 10 – y = 9 → –y = 9 – 10 = –1 → y = 1 =
7 7
3x + 2y = 17 → 3(5) + 2y = 17 → 15 + 2y = 17 → 2y = 17 – 15 = 2
→y=1 x=5
6. solution: (5, 1)
2x – y = 9 → 2(5) – (1) = 10 – 1 = 9…passed first test
3x + 2y = 17 → 3(5) + 2(1) = 15 + 2 = 17…passed second test


In some “special” cases, all of the variables will be eliminated leaving a numeric equation. When all of
the variables disappear, we need to determine whether the numeric equation is a true statement or a false
statement. If true, then the given system has infinitely many solutions because the lines will coincide on
a coordinate grid. If false, then the given system will have no solution because the lines will be parallel
to each other and not intersect each other at all.
example 1.22e Solve the given system of linear equations through algebraic elimination:
6x + 4y = 24
3x + 2y = 12
1. The easiest variable to eliminate is the y. 6x + 4y = 24

2. Needing both y coefficients to be the same number, multiply 3x + 2y = 12
the second equation by –2: –2(3x + 2y = 12) → –6x – 4y = –24 6x + 4y = 24
3. Adding straight down: 0 = 0 –6x – 4y = –24
Since all of the variables disappeared, this system is a “special” 0 = 0
case and we must determine whether the resulting numeric
equation is true or false. Since 0 = 0 is true, this system has
infinitely many solutions.
4. solution: infinitely many → {(x, y) | 6x + 4y = 24} –or– {(x,
y) | 3x + 2y = 12}
example 1.22f Solve the given system of linear equations through algebraic elimination:
5x – 2y = 20
10x – 4y = 20
1. The easiest variable to eliminate is the y. 5x – 2y = 20

2. Needing both y coefficients to be the same number, multiply 10x – 4y = 20
the first equation by –2: –2(5x – 2y = 20) → –10x + 4y = –40 –10x + 4y = –40
3. Adding straight down: 0 = –20 10x – 4y = 20
Since all of the variables disappeared, this system is a “special” case 0 = –20
and we must determine whether the resulting numeric equation is
true or false. Since 0 = –20 is false, this system has no solutions.
4. solution: no solutions
65
Tutorial 1.23 Solve a system of 3 equations in 3 variables.

We can adapt the elimination (or linear combination) method to solve systems that contain more than
two equations. One such adaptation is called the left to right method where we eliminate the variable
on the far left first and then work our way to the right…
example 1.23a Solve the given system x – 3y – z = –5

x – 2y + z = 3
2x – 6y + z = –1
Follow these steps:
1. Group the given equations so that they are in pairs.

2. Following the left to right method, we will need to eliminate the z variable first. Taking
advantage of the +/– sign before the z terms, add straight down:
x – 3y – z = –5 x – 3y – z = –5
x – 2y + z = 3 2x – 6y + z = –1
2x – 5y = –2 3x – 9y = –6
3. Following the left to right method, we will need to eliminate 2x – 5y = –2
the y variable next. Pair the two-variable equations from step 3x – 9y = –6
#2 and then solve for x: 18x – 45y = –18
• Multiply 1 equation by 9 → 9(2x – 5y = –2) → 18x – 45y = –18 –15x
st
+ 45y = 30
• Multiply 2nd equation by –5 → –5(3x – 9y = –6) → –15x + 45y = 30 3x = 12
• Add straight down → 3x = 12 x = 4
• Now, divide both sides of the equation by 3 → x = 4
4. Using the x value obtained in step #3, solve for y using either of the equations from step #2:
2x – 5y = –2 → 2(4) – 5y = –2 → –5y = –2 – 8 = –10 → −5 y = −10 → y = 2
−5 −5
3x – 9y = –6 → 3(4) – 9y = –6 → – 9y = –6 – 12 = –18 → −9 y = −18 → y = 2

−9 −9
5. Using the x and y values obtained in steps #3-4, solve for z using any of the original
equations:
x – 3y – z = –5 → x = 4, y = 2 → (4) – 3(2) – z = –5 → –z = –5 – 4 + 6 = 3 → z = 3
x – 2y + z = 3 → x = 4, y = 2 → (4) – 2(2) + z = 3 → z = 3 – 4 + 4 = 3 → z = 3
2x – 6y + z = –1 → x = 4, y = 2 → 2(4) – 6(2) + z = –1 → z = –1 – 8 + 12 = 3 → z = 3
6. Determine the solution to the system: x = 4, y = 2, z = 3
66
example 1.23b Solve the given system x + 4y – 2z = 3

x + 5y + 2z = 25
x + 4y – z = 8
Follow these steps:

2. Following the left to right method, we will need to eliminate the z variable first. Taking
advantage of the +/– sign before the z-terms, add straight down for the first pair. We will
need to multiply the bottom equation for the second pair by 2 and then add down:
x + 4y – 2z = 3 x + 5y + 2z = 25
x + 5y + 2z = 25 x + 4y – z = 8
2x + 9y = 28 x + 5y + 2z = 25
2x + 8y – 2z = 16
3x + 13y = 41
3. Following the left to right method, we will need to 2x + 9y = 28
eliminate the y variable next. Pair the two-variable 3x + 13y = 41
equations from step #2 and then solve for x: –26x – 117y = –364
• Multiply 1st equation by –13 → –26x – 117y = –364 27x + 117y = 369
• Multiply 2nd equation by +9 → 27x + 117y = 369 x = 5
• Add straight down → x = 5
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4. Using the x value obtained in step #3, solve for y using either of the equations from step #2:
2x + 9y = 28 → 2(5) + 9y = 28 → 9y = 28 – 10 = 18 → 9 y = 18 → y = 2
9 9
3x + 13y = 41 → 3(5) + 13y = 41 → 13y = 41 – 15 = 26 → 13 y = 26 → y = 2

13 13
5. Using the x and y values obtained in steps #3-4, solve for z using any of the original
equations:
−2 z −10
x + 4y – 2z = 3 → (5) + 4(2) – 2z = 3 → –2z = 3 – 5 – 8 = –10 → = →z=5
−2 −2
x + 5y + 2z = 25 → (5) + 5(2) + 2z = 25 → 2z = 25 – 5 – 10 = 10 → 2 z = 10 → z = 5
2 2
x + 4y – z = 8 → (5) + 4(2) – z = 8 → –z = 8 – 5 – 8 = –5 → − z = −5 → z = 5
−1 −1
Another adaptation of the elimination (or linear combination) method is called the right to left method
where we eliminate the variable on the far right first and then work our way to the left…following the
same process that we did with the left to right method.
example 1.23a Solve the given system x – 3y – z = –5

x – 2y + z = 3
2x – 6y + z = –1
Follow these steps:

2. Following the right to left method, we will need to eliminate the x variable first. Multiply the
top equation for the first pair by –1 and then add straight down. Multiply the top equation
for the second pair by –2 and then add straight down:
x – 3y – z = –5 x – 3y – z = –5
x – 2y + z = 3 2x – 6y + z = –1
–x + 3y + z = 5 –2x + 6y + 2z = 10
x – 2y + z = 3 2x – 6y + z = –1
y + 2z = 8 3z = 9
3. Following the left to right method, we will need to eliminate the y variable next. Since the
y was eliminated in step #2 for the second pair of equations, all we need to do is use the
second pairing to solve for z. Dividing both sides of the equation, we get: z = 3
4. Using the z value obtained in step #3, we would normally use either of the equations
obtained in step #2…however, since the second equation already has y eliminated, just use
the first equation obtained in step #2 to solve for y:
y + 2z = 8 → y + 2(3) = 8 → y = 8 – 6 = 2 → y = 2
68
5. Using the z and y values obtained in steps #3-4, solve for x using any of the original
equations:
x – 3y – z = –5 → x – 3(2) – (3) = –5 → x = –5 + 6 + 3 = 4 → x = 4
x – 2y + z = 3 → x – 2(2) + (3) = 3 → x = 3 + 4 – 3 = 4 → x = 4
2x 8
2x – 6y + z = –1 → 2x – 6(2) + (3) = –1 → 2x = –1 + 12 – 3 = 8 → = →x=4
2 2
example 1.23b Solve the given system x + 4y – 2z = 3

x + 5y + 2z = 25
x + 4y – z = 8
Follow these steps:

2. Following the right to left method, we will need to eliminate the x variable first. Multiply the
top equation for the first pair by –1, the bottom equation for the second pair by –1 and then
add straight down for both pairs of equations:
x + 4y – 2z = 3 x + 5y + 2z = 25
x + 5y + 2z = 25 x + 4y – z = 8
–x – 4y + 2z = –3 x + 5y + 2z = 25
x + 5y + 2z = 25 –x – 4y + z = –8
y + 4z = 22 y + 3z = 17
3. Following the left to right method, we will need to eliminate the y + 4z = 22
y variable next. Pair the two-variable equations from step #2 and y + 3z = 17
then solve for x: y + 4z = 22
• Multiply 2nd equation by –1 → –y – 3z = –17 –y – 3z = –17
• Add straight down → z = 5 z = 5
4. Using the z value obtained in step #3, solve for y using either of the equations from step #2:
y + 4z = 22 → y + 4(5) = 22 → y = 22 – 20 = 2 → y = 2
y + 3z = 17 → y + 3(5) = 17 → y = 17 – 15 = 2 → y = 2
5. Using the z and y values obtained in steps #3-4, solve for x using any of the original
equations:
x + 4y – 2z = 3 → x + 4(2) – 2(5) = 3 → x = 3 – 8 + 10 = 5 → x = 5
x + 5y + 2z = 25 → x + 5(2) + 2(5) = 25 → x = 25 – 10 – 10 = 5 → x = 5
x + 4y – z = 8 → x + 4(2) – (5) = 8 → x = 8 – 8 + 5 = 5 → x = 5
Notice that whether we use the left to right method or the right to left method, we are really doing the
same steps. The only difference between these two methods is which variable is the first to be eliminated
in the solution process.
69
Tutorial 1.24 Solve applications involving systems of equations.

When we are solving real-world applications, we will need to translate the written word into an appropriate
(equivalent) set of equations that can then be solved as a system (as was explained in previous tutorials).
example 1.24a A woman has $450,000 invested in two rental properties. One (x) yields an
annual return of 10% of her investment and the other (y) returns 15% per
year on her investment. Her total amount return from the two investments
is $55,000. How much is invested in each property?
1. Translate the given information sentences into their equivalent equations:

• A woman has $450,000 invested in two rental properties.
translation → x + y = 450,000
• One (x) yields an annual return of 10% of her investment and the other (y) returns
15% per year on her investment. Her total amount return from the two investments is
$55,000.
translation → 0.10x + 0.15y = 55,000

2. Solve the system of equations obtained from the translations using the elimination method:
x + y = 450,000
0.10x + 0.15y = 55,000 Multiply this equation by –10.
x + y = 450,000
–x – 1.5y = –550,000 Add straight down.
–0.5y = –100,000 Divide both sides of the equation by –0.5
y = 200,000
3. Use the value of y obtained above and either of the original equations to solve for x:
x + y = 450,000 → x + 200,000 = 450,000 → x = 450,000 – 200,000 → x = 250,000
0.10x + 0.15y = 55,000 → 0.10x + 0.15(200,000) = 55,000 → 0.10x = 55,000 – 30,000 →
0.10x = 25,000 → x = (25,000)(10) → x = 250,000
4. Use the derived solutions to answer the word problem:
solution: The woman invested $250,000 at the 10% rate and $200,000 at the 15% rate.
example 1.24b A bank lent $250,000 to a company for the development of two products.
If the loan for product “A” was for $75,000 more than that for product “B”,
how much was lent for each product?

• A bank lent $250,000 to a company for the development of two products.
translation → A + B = 250,000
• The loan for product “A” was for $75,000 more than that for product “B”.
translation → A = B + 75,000
2. Solve the system of equations obtained from the translations using the substitution method:
A = B + 75,000
A + B = 250,000
(B + 75,000) + B = 250,000 Substitute the expression for A into the second equation.
2B + 75,000 = 250,000 Combine like-terms.
2B = 250,000 – 75,000 = 175,000 Subtract 75,000 from both sides of the equation.
B = 175,000 ÷ 2 = 87,500 Divide both sides of the equation by 2.
3. Substitute the B value into either of the original equations and solve for A:
A = B + 75,000 → A = 87,500 + 75,000 = 162,500 → A = 162,500
A + B = 250,000 → A + 87,500 = 250,000 → A = 250,000 – 87,500 = 162,500 → A = 162,500
4. Use the derived solutions to answer the word problem:
solution: The bank lent $162,500 for product “A” and $87,500 for product “B”.
71
example 1.24c The Monmouth Emergency Management Agency is charged with providing
services to three types of clients (A, B, C) after a major crisis. A total of
1000 clients are to be served, with $445,000 available for counseling and
$285,000 available for food/shelter. Type A clients require an average of $300
for counseling and $400 for food/shelter. Type B clients require an average
of $600 for counseling and $300 for food/shelter. Type C clients require
an average of $400 for counseling and $200 for food/shelter. Under these
constraints, how many of each type of client can be served?

• A total of 1000 clients are to be served.
translation → A + B + C = 1000
• counseling: A @ $300, B @ $600, C @ 400, total available = $400,000
translation → 300A + 600B + 400C = 445,000
• food/shelter: A @ $400, B @ $300, C @ $200, total available = $312,500
translation → 400A + 300B + 200C = 285,000
2. Solve the system of equations obtained from the translations:
• Pair the equations:
300A + 600B + 400C = 445,000 with A + B + C = 1000
400A + 300B + 200C = 285,000 with A + B + C = 1000
• Using the right to left method, eliminate C first by multiplying the second equations so
that the C terms cancel each other out:
$ % &

$ % &
$ % &
±$ ±% ±& ±
±$ %
$ % &

$ % &
$ % &
±$ ±% ±& ±
$ %
72
• Pair the 2-variable equations that were the result of ±$ %
the previous step. Since the numbers all have at least $ %
$ ± % ±
two zeroes, we can make the numbers smaller by
$ %
dividing each of these equations: $ ± % ±
Divide the top equation by –100 → A – 2B = –450 $ %
Divide the bottom equation by +100 → 2A + B = 850 $
Multiply the new 2nd equation by 2 → 4A + 2B = 1700
Add straight down → 5A = 1250
5 A 1250
Divide by 5: = → A = 250
5 5
• Use the A value to determine the B value:

–100A + 200B = 45,000 → –100(250) + 200B = 45,000 → 200B = 45,000 + 100(250) →
200 B 70, 000
200B = 70,000 → = → B = 350
200 200
200A + 100B = 85,000 → 200(250) + 100B = 85,000 → 100B = 85,000 – 200(250) →
100 B 35, 000

100B = 35,000 → = → B = 350
100 100
• Use one of the original equations and the values of A and B to determine the value of C:
A + B + C = 1000 → C = 1000 – A – B → C = 1000 – 250 – 350 → C = 400
300A + 600B + 400C = 445,000 → 400C = 445,000 – 300A – 600B →
400C 160,000
400C = 445,000 – 300(250) – 600(350) → 400C = 160,000 → = → C = 400
400 400
400A + 300B + 200C = 285,000 → 200C = 285,000 – 400A – 300B →
200C 80,000
200C = 285,000 – 400(250) – 300(350) → 200C = 80,000 → = → C = 400
200 200
• Use the derived solutions to answer the word problem:

The Monmouth Emergency Management Agency has the capability of serving 250 type
“A” clients, 350 type “B” clients and 400 type “C” clients.
73
Tutorial 1.25 Find the marginal cost, the marginal cost revenue and the marginal
cost profit of given linear total cost functions, linear total revenue
functions and linear profit functions.
When a company produces an item for sale in a retail market, the company must pay attention to the
cost of production (money going out), the amount of revenue (money coming in) and the profit made:
Total Cost Function Total Revenue Function Total Profit Function

 variable   fixed   variable   variable   fixed 
=C ( x)  x+  R( x ) =   x=P( x)  x+ 
 costs   costs   revenue   profits   profits 
In a linear total cost function, the x represents the number of units being produced. The variable costs
can be thought of as the rate of change or slope of the function while the fixed costs can be thought of as
the vertical (y) intercept. Occasionally, the variable costs are also referred to as marginal costs.
In a linear total revenue function, the x represents the number of units being produced. The variable
revenue can be thought of as the rate of change or slope of the function. Notice that a linear total revenue
function will have a vertical (y) intercept of zero. The variable revenue may also be referred to as marginal
revenue.

Profit is the difference between the amount received from sales (revenue) and the total amount spent to
produce the product (cost). Thus, when the revenue and the costs are known, profit can be calculated
by: Profit = (Total Revenue) – (Total Cost)…or…P(x) = R(x) – C(x)
In a linear profit function, the x represents the number of units being produced. The variable profits can
be thought of as the rate of change or slope of the function while the fixed profits can be thought of as
the vertical (y) intercept. The variable profits may also be referred to as marginal profits.
example 1.25a Use this information to answer the questions:

Suppose a stereo receiver manufacturer has the given total cost function and the
given total revenue function: C(x) = 200x + 3500 and R(x) = 450x
a) What is the variable cost for this product?
answer: 200 (The variable cost is the slope of the given cost function.)
b) What is the marginal cost for this product?

answer: 200 (The marginal cost is the slope of the given cost function.)
c) What is the fixed cost for this product?

answer: 350 (The fixed cost is the y-intercept of the given cost function.)
d) What is the variable revenue for this product?

answer: 450 (The variable revenue is the slope of the given revenue function.)
e) What is the marginal revenue for this product?

answer: 450 (The marginal revenue is the slope of the given revenue function.)
f) What is the equation for the profit function for this product?
P(x) = R(x) – C(x) → P(x) = 450x – (200x + 3500) = 450x – 200x – 3500
answer: P(x) = 250x – 3500
g) What is the variable profit for this product?

answer: 250 (The variable profit is the slope of the profit function.)
h) What is the marginal profit for this product?

answer: 250 (The marginal profit is the slope of the profit function.)
i) What is the fixed profit for this product?

answer: –3500 (The fixed profit is the y-intercept of the profit function.)
75
example 1.25b Use this information to answer the questions:

Suppose a computer manufacturer has the given total cost function and the
a) What is the variable cost for this product?
answer: 250 (The variable cost is the slope of the given cost function.)
b) What is the marginal cost for this product?

answer: 250 (The marginal cost is the slope of the given cost function.)
c) What is the fixed cost for this product?

answer: 4000 (The fixed cost is the y-intercept of the given cost function.)
d) What is the variable revenue for this product?

answer: 750 (The variable revenue is the slope of the given revenue function.)
e) e.What is the marginal revenue for this product?

answer: 750 (The marginal revenue is the slope of the given revenue function.)
f) What is the equation for the profit function for this product?
P(x) = R(x) – C(x) → P(x) = 750x – (250x + 4000) = 750x – 250x – 4000
answer: P(x) = 500x – 4000
g) What is the variable profit for this product?

answer: 500 (The variable profit is the slope of the profit function.)
h) What is the marginal profit for this product?

answer: 500 (The marginal profit is the slope of the profit function.)
i) What is the fixed profit for this product?

answer: –4000 (The fixed profit is the y-intercept of the profit function.)
76
Tutorial 1.26 Evaluate linear total cost functions, linear total revenue functions and
linear profit functions.
When we want to evaluate a linear function, we must replace the variable with the given value that is to be
used in the evaluation. Following the order of operations (PEMDAS), we just calculate the desired result .
example 1.26a Suppose a stereo receiver manufacturer has the given total cost function and
the given total revenue function: C(x) = 200x + 3500 and R(x) = 450x
a) If 1000 units are produced, find the total costs for this product.
x = 1000 → C(1000) = 200(1000) + 3500 = $203,500 → answer: $203,500
b) If 1000 units are produced, find the total revenue for this product.
x = 1000 → R(1000) = 450(1000) = $450,000 → answer: $450,000
c) If 1000 units are produced, find the total profits for this product.
profit = revenue – cost = 450,000 – 203,500 = 246,500 → answer: $246,500
P(x) = R(x) – C(x) → P(1000) = R(1000) – C(1000)
P(1000) = 450(1000) – [200(1000) + 3500]
P(1000) = 450,000 – 200,000 – 3500 = 246,500
example 1.26b Suppose a computer manufacturer has the given total cost function and the
a) If 1500 units are produced, find the total costs for this product.
x = 1500 → C(1500) = 250(1500) + 4000 = 379,000 → answer: $379,000
b) If 1500 units are produced, find the total revenue for this product.
x = 1500 → R(1500) = 750(1500) = 1,125,000 → answer: $1,125,000
c) If 1500 units are produced, find the total profits for this product.
profit = revenue – cost = 1,125,000 – 379,000 = 746,000 → answer: $746,000
P(x) = R(x) – C(x) → P(1500) = R(1500) – C(1500)
P(1500) = 750(1500) – [250(1500) + 4000]
P(1500) = 1,125,000 – 375,000 – 4000 = 746,000
77
Tutorial 1.27 Write the equations for linear total cost functions, linear total revenue
functions and linear profit functions by using information given about
the functions.
When we want to write the equation for any linear function all we need to do is to use the given information
to determine the slope and the y-intercept of the function (as was described in previous tutorials)…
example 1.27a Suppose that the total cost function for an iPod is linear, that the marginal
cost is $30 and that the total cost for fifty iPods is $5000. Write the slope-
intercept form for this function.
• marginal cost is $30 → m = slope = 30
• total cost for 50 iPods is $5000 → (50, 5000) → x = 50 when y = 5000
• slope-intercept: y = mx + b → b = y – mx → b = 5000 – (30)(50) = 3500
• answer: C(x) = 30x + 3500
example 1.27b Suppose that the total revenue function for an iPod is linear and that the
marginal revenue is $150. Write the slope-intercept form for this function.
• marginal revenue is $150 → m = slope = 150
• The y-intercept for all revenue functions is (0, 0)…thus, b = 0.
• answer: R(x) = 150x
example 1.27c A company is charting its profits and discovered that the relationship between
the number of items sold and the profit is linear. If 200 units sold results
in $3000 profit and 250 units sold results in $5000 profit, write the slope-
intercept form for this function.
• Find the slope of (200, 3000) and (250, 5000):
y2 − y1 5000 − 3000 2000

slope = m = = = = 40
x2 − x1 250 − 200 50
• Use one of the given ordered pairs to determine the value of b:

slope-intercept: y = mx + b → b = y – mx →
(200, 3000) → x = 200, y = 3000 → b = 3000 – (40)(200) = –5000
(250, 5000) → x = 250, y = 5000 → b = 5000 – (40)(250) = –5000
• Write the slope-intercept form for the desired function:
answer: P(x) = 40x – 5000
78
Tutorial 1.28 Find the break-even point for cost & revenue functions.
The phrase break-even point refers to the point at which the total cost and the total revenue are equal
to each other: C(x) = R(x). Or, in other words, when there is no profit: P(x) = 0. When we use the total
cost and the total revenue functions to determine the break-even point, we are actually solving a system
of linear equations…
example 1.28a Find the number of units (x) that must be sold to break even if a manufacturer
has these given total cost and total revenue functions C(x) = 200x + 3500
R(x) = 450x
solution #1:
break-even: C(x) = R(x) → 200x + 3500 = 450x
Subtracting 200x from both sides → 3500 = 450x – 200x = 250x → 3500 = 250x
Dividing both sides by 250 → x = 3500 ÷ 250 = 14
Evaluate the C(x) function when x = 14 → C(14) = 200(14) + 3500 = 6300
Evaluate the R(x) function when x = 14 → R(14) = 450(14) = 6300
answer: The break-even point occurs when x = 14 and y = 6300.
solution #2:
C(x) = 200x + 3500; R(x) = 450x → P(x) = R(x) – C(x) →
P(x) = 450x – (200x + 3500) = 450x – 200x – 3500 = 250x – 3500
break-even: P(x) = 0 → 250x – 3500 = 0 → 250x = 3500 → x = 14
example 1.28b A company distributes college logo sweatshirts and sells them for $74
each. Assuming that the total cost function is linear, the total cost for 100
sweatshirts is $5000 while the total cost for 250 sweatshirts is $8600. How
many sweatshirts must be sold to break even?
1. Determine the total revenue function for this scenario:
A company distributes sweatshirts and sells them for $74 each → R(x) = 74x
2. Determine the total cost function for this scenario:

• Find the slope between the given points: (100, 5000) and (250, 8600) →
y2 − y1 8600 − 5000 3600
=m = = = 24
x2 − x1 250 − 100 150
79
• Use one of the given points to determine b →

(100, 5000) → b = y – mx = 5000 – 24(100) = 2600
(250, 8600) → b = y – mx = 8600 – 24(250) = 2600
• Write the slope-intercept form of C(x) → C(x) = 24x + 2600
solution #1:
break-even: C(x) = R(x) → 24x + 2600 = 74x
Subtracting 24x from both sides → 2600 = 74x – 24x = 50x → 2600 = 50x
Dividing both sides by 50 → x = 2600 ÷ 50 = 52
solution #2:
C(x) = C(x) = 24x + 2600; R(x) = 74x → P(x) = R(x) – C(x) →
P(x) = 74x – (24x + 2600) = 74x – 24x – 2600 = 50x – 2600
break-even: P(x) = 0 → 50x – 2600 = 0 → 50x = 2600 → x = 52

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Tutorial 1.29 Evaluate and graph supply & demand functions.

The Laws of Supply and Demand state that:
• The quantity (x) supplied will increase as the price of a product increases…or…will decrease
as the price of a product decreases.
• The quantity (x) demanded will increase as the price of a product decreases…or…will
decrease as the price of a product increases.
If the supply function for a particular product is linear, then the slope of its graph will be positive since
the quantity and the price both go up together or down together. If the demand function for a particular
product is linear, then the slope of its graph will be negative since the quantity goes up while the price
goes down…or vice-versa: the quantity goes down while the price goes up.
If S(x) = the supply function and D(x) = the demand function, comparing S(x) with D(x) will help us
determine whether there will be a surplus (having more than needed to satisfy the demand) or a shortage
(not having enough to satisfy the demand) of the product in question:
• A surplus will occur when S(x) > D(x).

• A shortage will occur when S(x) < D(x).
example 1.29a The graphs of the supply function and the demand function for the same
product are shown. Use these graphs to answer the following questions:

3 SULFH
3 SULFH

4 TXDQWLW\ 4 TXDQWLW\

JUDSK JUDSK
a) Which of the given graphs is the display for the supply function?
answer: graph #2 (Supply functions have positive slopes.)
b) Which of the given graphs is the display for the demand function?
answer: graph #1 (Demand functions have negative slopes.)
81
c) How many units are supplied when the price is $300?

answer: 200…Using graph #2, we can see that the point of intersection of
the supply function (black line) and the P = 300 (red) line is: (200, 300)…
which means that 200 units are supplied when the price is $300).

3 SULFH
3 SULFH

4 TXDQWLW\ 4 TXDQWLW\
d) How many units are demanded when the price is $300?

answer: 400…Using graph #1, we can see that the point of intersection of
the supply function (black line) and the P = 300 (red) line is: (400, 300)…
which means that 400 units are demanded when the price is $300.
e) Will there be a market surplus or a market shortage when the price is

$300?
answer: market shortage…200 < 400 → S(x) < D(x)
82
example 1.29b Suppose that a certain product has the following supply and demand
functions:
S(x) = 0.5x + 10 D(x) = –0.5x + 40
Will there be a market surplus or shortage for this product when its price
is $32?
answer #1: Both of the given functions have
been graphed on the coordinate grid at the
right. Since we are interested in the price of

6[ [
3 SULFH
$32, we have drawn a horizontal (red) line
where P = 32. Notice that the horizontal (red)

line intersects with the D(x) function before

it intersects with the S(x). Thus, S(x) > D(x) '[ [

which means that there will be a market
4 TXDQWLW\
surplus.
answer #2:
S(x) = 0.5x + 10 = 32 → 0.5x = 32 – 10 = 22 → x = 22 ÷ 0.5 = 44
D(x) = –0.5x + 40 = 32 → –0.5x = 32 – 40 = –8 → x = –8 ÷ –0.5 = +16
S(x) > D(x) → There will be a market surplus for this product.
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Tutorial 1.30 Write the equation (in slope-intercept form) for a supply function and/
or a demand function.
The supply function for a given scenario defines the amounts and unit prices that the manufacturer
(supplier, wholesaler) is willing to supply a particular product. The demand function for a given scenario
defines the amounts and unit prices that the retailer (customer, buyer) is willing to purchase a particular
product.
example 1.30a Suppose that the owner of a local shoe store will buy only 10 pairs of a
certain shoe if the unit price is $90 but 20 pairs if the unit price is $65. The
manufacturer of the shoes is willing to provide 75 pairs if the unit price
is $130 but only 45 pairs if the unit price is $70. If both of the supply and
demand functions are linear:
a) Write the equation (in slope-intercept form) for the supply function.
b) Write the equation (in slope-intercept form) for the demand function.
To write the equation for the supply function, determine that the sentence about the manufacturer should
be used. Then just follow these steps…
• Use the given information to create two ordered pairs (Q, P): P1 = (75, 130), P2 = (45, 70)
y2 − y1 70 − 130 −60
m
• Use these points to determine the slope:= = = = 2
x2 − x1 45 − 75 −30
• Then use either of these points to determine the y-intercept of the supply function:
m = 2, P = (75, 130) → y = mx + b → b = y – mx → b = 130 – (2)(75) = –20
m = 2, P = (45, 70) → y = mx + b → b = y – mx → b = 70 – (2)(45) = –20
• Finally, use the calculated values of m and b to write the supply function in its slope-
intercept format: m = 2, b = –20 → S(x) = 2x – 20
To write the equation for the demand function, determine that the sentence about the owner should be
used. Then just follow these steps…
y2 − y1 65 − 90 −25
• Use these points to determine the slope: m = = = = −2.5
x2 − x1 20 − 10 10
• Then use either of these points to determine the y-intercept of the demand function:
m = –2.5, P = (10, 90) → y = mx + b → b = y – mx → b = 90 – (–2.5)(10) = 115
m = –2.5, P = (20, 65) → y = mx + b → b = y – mx → b = 65 – (–2.5)(20) = 115
• Finally, use the calculated values of m and b to write the demand function in its slope-
intercept format: m = –2.5, b = 115 → D(x) = 115 – 2.5x
84
example 1.30b Suppose a group of retailers will buy only 72 televisions from a wholesaler
if the unit price is $310 but 120 televisions if the unit price is $250. The
wholesaler is willing to supply only 64 televisions if the unit price is $282
and 144 televisions if the unit price is $372. If both of the supply and demand
functions are linear:
a) Write the equation (in slope-intercept form) for the supply function.
b) Write the equation (in slope-intercept form) for the demand function.
To write the equation for the supply function, determine that the sentence about the wholesaler should
be used. Then just follow these steps…
y2 − y1 372 − 282 90
• Use these points to determine the slope: =
m = = = 1.125
x2 − x1 144 − 64 80
• Then use either of these points to determine the y-intercept of the supply function:
m = 1.125, P = (64, 282) → y = mx + b → b = y – mx → b = 282 – (1.125)(64) = 210
m = 1.125, P = (144, 372) → y = mx + b → b = y – mx → b = 372 – (1.125)(144) = 210
• Finally, use the calculated values of m and b to write the supply function in its slope-
intercept format: m = 1.125, b = 210 → S(x) = 1.125x + 210
To write the equation for the demand function, determine that the sentence about the group of retailers
should be used. Then just follow these steps…
y2 − y1 250 − 310 −60
• Use these points to determine the slope: m = = = = −1.25
x2 − x1 120 − 72 48
• Then use either of these points to determine the y-intercept of the demand function:
m = –1.25, P = (72, 310) → y = mx + b → b = y – mx → b = 310 – (–1.25)(72) = 400
m = –1.25, P = (120, 250) → y = mx + b → b = y – mx → b = 250 – (–1.25)(120) = 400
• Finally, use the calculated values of m and b to write the demand function in its slope-
intercept format: m = –1.25, b = 400 → D(x) = 400 – 1.25x
Recall that the slope of all linear demand functions will be negative while the slope of all linear supply
functions will be positive. If we are not sure which given information should be used for the supply
function or which given information should be used for the demand function, just determine the slope
for each of the sentences…the negative slope will be the demand function.
NOTE: Although the same slope values were used for the supply functions in each of these examples
that may not always be the case. And, although the same slope values were used for the demand
functions in each of these examples that may not always be the case.
85
Tutorial 1.31 Determine the market equilibrium for a given scenario.

Market equilibrium is the point of compromise between the suppliers and the demanders of a product.
In other words, the market equilibrium is the point of intersection when the supply function is equal
to the demand function: S(x) = D(x). The point at which the market equilibrium occurs is sometimes
called the equilibrium point (Q, P).
example 1.31a Suppose that the owner of a local shoe store will buy only 20 pairs of a
certain shoe if the unit price is $80 but 30 pairs if the unit price is $55. The
manufacturer of the shoes is willing to provide 60 pairs if the unit price is $70
but only 50 pairs if the unit price is $50. If both of the supply and demand
functions are linear, find the market equilibrium for this scenario.
Just follow these steps to answer this word problem…
• Determine which sentence refers to the supply function: manufacturer = supplier

• Determine which sentence refers to the demand function: owner = retailer
• Use the given information to create ordered pairs (Q, P)…two ordered pairs for the supply
function and two ordered pairs for the demand function:
supply function: P1 = (60, 70); P2 = (50, 50)
demand function: P1 = (20, 80); P2 = (30, 55)

• Use the points to determine the slope (m) of each function:

y2 − y1 50 − 70 −20
supply function:=m = = = 2
x2 − x1 50 − 60 −10
y2 − y1 55 − 80 −25
demand function: m = = = = −2.5
x2 − x1 30 − 20 10
• Use either of the S(x) points to determine its y-intercept:

m = 2, P1 = (60, 70) → y = mx + b → b = y – mx → b = 70 – 2(60) = –50
m = 2, P2 = (50, 50) → y = mx + b → b = y – mx → b = 50 – 2(50) = –50
• Use either of the D(x) points to determine its y- intercept:
m = –2.5, P1 = (20, 80) → y = mx + b → b = y – mx → b = 80 – (–2.5)(20) = 130
m = –2.5, P2 = (30, 55) → y = mx + b → b = y – mx → b = 55 – (–2.5)(30) = 130
• Use the calculated values of m and b to write the supply function in its slope-intercept
format:
m = 2, b = –50 → S(x) = 2x – 50
• Use the calculated values of m and b to write the demand function in its slope-intercept
format:
m = –2.5, b = 130 → D(x) = 130 – 2.5x
• To find the market equilibrium, set the two functions equal to each other and solve for the
variable x (which represents the quantity agreed upon):
2x – 50 = 130 – 2.5x → 2x + 2.5x = 130 + 50 → 4.5x = 180 → 4.5 x = 180 → x = 40
4.5 4.5
• Finally, substitute the value of x into either the supply function of the demand function to
determine the agreed upon price:
supply function: S(x) = 2x – 50 → S(40) = 2(40) – 50 → S(x) = 80 – 50 = 30
demand function: D(x) = 130 – 2.5x → D(40) = 130 – (2.5)(40) → D(x) = 130 – 100 = 30
• Use the derived values to answer the word problem:
The equilibrium point (Q, P) = (40, 30)…which means that the agreed upon quantity was
40 pairs of shoes at the unit price of $30.
example 1.31b Suppose a group of retailers will buy only 74 televisions from a wholesaler
if the unit price is $370 but 130 televisions if the unit price is $300. The
wholesaler is willing to supply only 82 televisions if the unit price is $436
and 154 televisions if the unit price is $517. If both of the supply and demand
functions are linear, find the market equilibrium for this scenario.
• Determine which sentence refers to the supply function: wholesaler = supplier

• Determine which sentence refers to the demand function: retailers = retailer
• Use the given information to create ordered pairs (Q, P)…two ordered pairs for the supply
function and two ordered pairs for the demand function:
supply function: P1 = (82, 436); P2 = (154, 517)
demand function: P1 = (74, 370); P2 = (130, 300)
87
• Use these points to determine the slope (m) of each function:
y2 − y1 517 − 436 81 9
supply function: m= = = = = 1.125
x2 − x1 154 − 82 72 8
y − y1 300 − 370 −70 −5
demand function: m = 2 = = = = −1.25
x2 − x1 130 − 74 56 4
• Use either of the S(x) points to determine its y-intercept:

m = 1.125, P1 = (82, 436) → y = mx + b → b = y – mx → b = 436 – (1.125)(82) = 343.75
m = 1.125, P2 = (154, 517) → y = mx + b → b = y – mx → b = 517 – (1.125)(154) = 343.75
• Use either of the D(x) points to determine its y- intercept:
m = –1.25, P1 = (74, 370) → y = mx + b → b = y – mx → b = 370 – (–1.25)(74) = 462.5
m = –1.25, P2 = (130, 300) → y = mx + b → b = y – mx → b = 300 – (–1.25)(130) = 462.5
• Use the calculated values of m and b to write the supply function in its slope-intercept
format:
m = 1.125, b = 343.75 → S(x) = 1.125x + 343.75
• Use the calculated values of m and b to write the demand function in its slope-intercept
format:
m = –1.25, b = 462.50 → D(x) = 462.50 – 1.25x
• To find the market equilibrium, set the two functions equal to each other and solve for the
variable x (which represents the quantity agreed upon):
1.125x + 343.75 = 462.50 – 1.25x → 1.125x + 1.25x = 462.50 – 343.75
2.375x = 118.75 → 2.375 x = 118.75 → x = 50
2.375 2.375
• Finally, substitute the value of x into either the supply function of the demand function to
determine the agreed upon price:
supply function: demand function:
S(x) = 1.125x + 343.75 D(x) = 462.50 – 1.25x
S(50) = 1.125(50) + 343.75 D(50) = 462.50 – 1.25(50)
S(x) = 56.25 + 343.75 = 400 D(x) = 462.50 – 62.50 = 400
• Use the derived values to answer the word problem:

The equilibrium point (Q, P) = (50, 400)…which means that the agreed upon quantity was
50 televisions at the unit price of $400.
88
Recall that the slope of all linear demand functions will be negative while the slope of all linear supply
functions will be positive. If we are not sure which given information should be used for the supply
function or which given information should be used for the demand function, just determine the slope
for each of the sentences…the negative slope will be the demand function.
NOTE: Although the same slope values were used for the supply functions in each of these examples
that may not always be the case.
NOTE: Although the same slope values were used for the demand functions in each of these examples
that may not always be the case.

• 3

Change
Maastricht
University is
the best specialist
university in the
(Elsevier)

Tutorial 1.32 Graph a linear inequality in two variables.

When we graph a linear equation, the correct display will only be a straight line with a certain slope and
y-intercept. All of the points on the graphed line will be included in the solution set for the equation.
However, when we graph a linear inequality, there will be a lot more points that should be included in
the solution set for the inequality. In order to properly graph a linear inequality, we need to determine
a feasible solution region by plotting a boundary line and then shading the portion of the coordinate
plane that is appropriate for the given linear inequality. Sometimes the boundary line will be included
in the feasible solution region and sometimes it won’t. The relationship symbol used in the given linear
inequality will determine whether or not the boundary line is to be included:
• If the “is less than” symbol (<) or the “is greater than” symbol (>) is used in the given linear
inequality, the boundary line should not be included in the feasible solution region and
should be shown as a dotted line on the coordinate graph.
• If the “is less than or equal to” symbol (£) or the “is greater than or equal to” symbol (≥)
is used in the given linear inequality, the boundary line should be included in the feasible
solution region and should be shown as a solid line on the coordinate graph.
example 1.32a Graph this linear inequality on a coordinate grid: y < 2x + 4
1. Graph the boundary line by plotting: y = 2x + 4
m = 2, y-intercept = (0, 4), x-intercept = (–2, 0)

Since < is used, the boundary line should be dotted.
2. Use a test point (any point that is not on the boundary

line) to determine which side of the coordinate plane

should be shaded. The easiest test point to use is (0, 0). If
x = 0 and y = 0 then substitute these values into the given

linear inequality to determine whether (0, 0) will be part

of its solution set:
y < 2x + 4 → 0 < 2(0) + 4 → 0 < 4
Since this numeric statement is true, shade over the test point.
If (0, 0) is on the boundary line, then select any other point that is not on the boundary line for the
test point and substitute the x and y values into the given linear equation. Suppose we chose (6, 4) as
the test point for this inequality, then: y < 2x + 4 → 4 < 2(6) + 4 → 4 < 16. This numeric statement is
true…therefore, shade over the test point (0, 0).
90
example 1.32b Graph this linear inequality on a coordinate grid: y > 6 – 3x
1. Graph the boundary line by plotting: y = 6 – 3x
m = –3, y-intercept = (0, 6), x-intercept = (2, 0)

Since > is used, the boundary line should be dotted.

2. Use the test point of (0, 0). If x = 0 and y = 0 then
substitute these values into the given linear inequality to

determine whether (0, 0) will be part of its solution set:
y > 6 – 3x → 0 > 6 – 3(0) → 0 > 6
Since this numeric statement is false, shade away from the

test point.
example 1.32c Graph this linear inequality on a coordinate grid: y ≤3x + 6
1. Graph the boundary line by plotting: y = 3x + 6
m = 3, y-intercept = (0, 6), x-intercept = (–2, 0)

Since £ is used, the boundary line should be solid.


y ≤ 3x + 6 → 0 < 3(0) + 6 → 0 < 6

Since this numeric statement is true, shade over the test point.

example 1.32d Graph this linear inequality on a coordinate grid: y≥4 – 2x
1. Graph the boundary line by plotting: y = 4 – 2x

m = –2, y-intercept = (0, 4), x-intercept = (2, 0)
Since ≥ is used, the boundary line should be solid.


y ≥ 4 – 2x → 0 > 4 – 2(0) → 0 > 4
Since this numeric statement is false, shade away from the
test point.

91
Tutorial 1.33 Solve a system of linear inequalities in two variables.

We can find the solution of a system of linear inequalities by graphing on a coordinate grid just as we
can for a system of linear equations. The only difference is that we are not looking for the intersection
of lines (as we do with a system of linear equations) but for the intersection of feasible solution regions.
All we need to do to graph any system of linear inequalities is to graph each inequality individually
(boundary line plus shading) and see where the shaded regions will overlap. It does not matter how
many inequalities are contained in the given system…just repeat the same steps.
Remember that:
• The boundary lines may be dotted (when < or > are used) or solid (when £ or ≥ are used).
• If the boundary line is dotted, then it is not part of the feasible solution region.
• If the boundary line is solid, then it is part of the feasible solution region.
• The shaded area will be determined by using any test point (x, y).
• The easiest test point to use is (0, 0) but any will do – just as long as it is not on the
boundary line.
• Shade over the test point (x, y) if it produces a true statement when substituted into the inequality.
• Shade away from the test point (x, y) if it produces a false statement.
• When graphing a system of inequalities graph each inequality individually and then see
where the shaded parts will overlap.
> Apply now

AxA globAl grAduAte
progrAm 2015
- © Photononstop


example 1.33 Graph this linear inequality on a coordinate grid x – y ≥ –4

3x + 2y < 2

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Tutorial 1.34 Name the vertices for the feasible solution region for the given system
of linear inequalities.
When we use graphing a system of linear inequalities in a business application, we will often need to
use numbers greater than zero as the domain (the permissible replacements for x) and the range (the
permissible replacements for y). Therefore, we will often restrict the possible values to be used by including
these additional inequalities: x ≥ 0, y ≥ 0…and so on…one additional inequality for each variable needed
to complete the task of graphing a system of linear inequalities. These additional inequalities will guarantee
that the entire graph will be displayed in the first quadrant (top right quarter) of the coordinate plane
and that all of the numbers used will be greater than zero.
When we graph a system of linear inequalities, the feasible solution region is polygonal in shape. The
number of inequalities contained in the given system will determine how many sides the polygonal
shape will have. The points (coordinates) at which these sides intersect are called the vertices of the
feasible solution region.
example 1.34 Graph this linear inequality on a coordinate grid 3x + 4y ≤ 240

3x – 2y ≤ 60
x ≥ 0, y ≥ 0

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NOTE: The last two inequalities (x ≥ 0, y ≥ 0) will guarantee that the final graph will be displayed in the
first quadrant (top right quarter) of the coordinate plane. When graphing technology (such as
MS Excel) is used, we can format the axes of the graph to reflect that the horizontal and vertical
axes begin at (0, 0). If we had not restricted the display to the first quadrant, point (0, –30) would
be displayed.
Now we need to examine the feasible solution region for the given
system of linear inequalities to determine its vertices (the points where

the sides of the polygonal region intersect). The feasible solution
region for the given system of linear inequalities is displayed at
the right without any extra lines or shading. Because of the given
constraints (inequalities), this feasible solution region is a polygonal

region with 4 sides. The red dots are the vertices of the feasible solution

region. The coordinates of these vertices can be determined from the

graph itself since each one is considered a lattice point (located at the
intersection of two grid lines).
Therefore, the vertices of the given system are: (0, 0), (0, 60), (20, 0) and (40, 30)
However, there may be times when the vertex coordinates will not be located at the intersection of grid
lines. In that case, we can always determine these coordinates by solving a series of systems that use
pairs of equations that are derived from the given inequalities.

Tutorial 1.35 Determine the optimal minimum or maximum value of a given linear
function that is subject to constraints as defined by the given system
of inequalities.
In business, it is often useful to determine the minimum or the maximum values that can occur for a
particular situation: minimum costs, maximum revenue, maximum profits, and the like. If the constraints
for the particular task can be represented by linear inequalities, then we can graph the inequalities to
determine the vertices for the appropriate feasible solution region. We then can use the vertices to
determine the requested minimum or maximum value possible for a given linear objective function.
example 1.35a For the given system 3x + 4y ≤36

x + y ≤ 10
4x + 3y ≤36
x ≥0, y ≥0
a) Determine its feasible solution region.

b) Determine the list of the vertices of the feasible solution region.
c) Determine the minimum value (if it exists) of the system.
d) Determine the maximum value (if it exists) of the system

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Notice that the last two given inequalities (constraints) will guarantee
that all of the desired graphs will be in the first quadrant (top right

quarter) of the coordinate plane. Also, since the first three inequalities

(constraints) are all using the relationship symbol of “£” (is less than

or equal to), all of the lines should be “solid” (which means that the

points on these lines are included in the solution region) and the
shading should be towards (0, 0) on the coordinate plane.

Now that we have each of the main inequalities graphed, we need to
determine where they overlap. Since the shading of all three main
inequalities (constraints) are toward (0, 0), the shading that should
be displayed in the solution region will also be towards (0, 0).
vertices objective
x y F = 6x + 4y MIN/MAX???
0 0 F = 6(0) + 4(0) = 0 minimum
0 9 F = 6(0) + 4(9) = 36
4 6 F = 6(4) + 4(6) = 48
6 4 F = 6(4) + 4(4) = 40
9 0 F = 6(9) + 4(0) = 54 maximum
To evaluate the objective function, substitute the values of x and y using the coordinates of each vertex.
Then, examine the results: 0, 36, 48, 40, 54…
• Which one is the smallest? That would be the minimum value possible for the given
constraints.
• Which one is the largest? That would be the maximum value possible for the given
constraints.
example 1.35b For the given system x + 4y ≥ 8

x + 2y ≥ 6
2x + y ≥ 6
x ≥ 0, y ≥ 0
a) Determine its feasible solution region.

b) Determine the list of the vertices of the feasible solution region.
c) Determine the minimum value (if it exists) of the system.
d) Determine the maximum value (if it exists) of the system
97

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Notice that the last two given inequalities (constraints) will guarantee that all of the desired graphs will
be in the first quadrant (top right quarter) of the coordinate plane. Also, since the first three inequalities
(constraints) are all using the relationship symbol of “≤” (is less than or equal to), all of the lines should be
“solid” (which means that the points on these lines are included in the solution region) and the shading
should be towards (0, 0) on the coordinate plane.
Now that we have each of the main inequalities graphed, we need to determine where they overlap.
Since the shading of all three main inequalities (constraints) are toward (0, 0), the shading that should
be displayed in the solution region will also be towards (0, 0).

vertices objective

x y F = 4x + 5y MIN/MAX???

0 6 F = 4(0) + 5(6) = 30

2 2 F = 4(2) + 5(2) = 18 minimum

4 1 F = 4(4) + 5(1) = 21

8 0 F = 4(8) + 5(0) = 32

To evaluate the objective function, substitute the values of x and y using the coordinates of each vertex.
Then, examine the results: 30, 18, 21, 32…
• Which one is the smallest? That would be the minimum value possible for the given
constraints.
• Since this solution region continues on indefinitely away from (0, 0), there will be no
maximum value for the given objective function.
When the feasible solution region is contained on all sides (as shown in the graph for example 1.35a),
there will be a minimum as well as a maximum value for the given objective function.
When the feasible solution region is an “unbounded” region and the shading is going infinitely towards
the positive regions of the coordinate plane (as shown in the final graph for example 1-35b), there will
be no maximum value of the given objective function. On the other hand, when the feasible solution
region is an “unbounded” region and the shading is going infinitely towards the negative regions of the
coordinate plane, there will be no minimum value of the given objective function.
99
Tutorial 1.36 Use graphing to determine the optimal maximum value of a linear
function subject to constraints.
Incorporating all of the tasks involved in graphing a linear inequality we can now complete any linear
programming problem that will ask us to determine the optimal maximum value of a given linear
objective function.
example 1.36 Use coordinate grid graphing to determine the optimal maximum value of
a linear function that is subject to set constraints 8x + 3y ≤360
4x + 3y ≤ 240
2x + 3y ≤180
x ≥≥ 0, y ≥ ≥0
F = 8x + 5y

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The last two inequalities (constraints) guarantee that the graph will be in the first quadrant. We have
graphed each of the first three inequalities (constraints). Now we just need to determine where the
overlap exists among all of the given inequalities (constraints). Then we need to determine the vertex
coordinates of the points where the graphed lines intersect and form the polygonal solution region.
Once we have the vertex coordinates, we can evaluate the given objective function. Finally, just find the
highest (maximum) value of these evaluations.
100

vertices objective

x y F = 8x + 5y
0 0 F = 8(0) + 5(0) = 0
0 60 F = 8(0) + 5(60) = 300

30 40 F = 8(30) + 5(40) = 440

45 0 F = 8(45) + 5(0) = 360

Using the vertex coordinates, we obtain the evaluations of
0, 300, 440 and 360. The highest of these evaluations is

440. Therefore, the optimal maximum value for the given

constraints is 440 when x = 30 while y = 40.

MAX = 440 when x = 30, y = 40



Tutorial 1.37 Use graphing to determine the optimal minimum value of a linear
function subject to constraints.
Incorporating all of the tasks involved in graphing a linear inequality we can now complete any linear
programming problem that will ask us to determine the optimal minimum value of a given linear
objective function.
example 1.37 Use coordinate grid graphing to determine the optimal minimum value of
a linear function that is subject to set constraints x + 3y ≥ 60
2x + y ≥ 50
x + y ≥ 40
x ≥ 0, y ≥ 0
F = 3x + y

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The last two inequalities (constraints) guarantee that the graph will be in the first quadrant. We have
graphed each of the first three inequalities (constraints). Now we just need to determine where the
overlap exists among all of the given inequalities (constraints). Then we need to determine the vertex
coordinates of the points where the graphed lines intersect and form the polygonal solution region. Once
we have the vertex coordinates, we can evaluate the given objective function. Finally, just find the lowest
(minimum) value of these evaluations.
102

vertices objective
x y F = 3x + y

0 50 F = 3(0) + (50) = 50

10 30 F = 3(10) + (30) = 60

30 10 F = 3(30) + (10) = 100

60 0 F = 3(60) + (0) = 180

Using the vertex coordinates, we obtain the

evaluations of 50, 60, 110 and 180. The lowest

of these evaluations is 50. Therefore, the optimal

minimum value for the given constraints is 50
when x = 0 while y = 50.
MAX = 50 when x = 0, y = 50
Remember that if we cannot read the vertex coordinates from the grid, we can always determine the
intersection points by solving system of linear equations:
think of: x + 3y ≥ 60 think of: 2x + y ≥ 50 think of: x + y ≥ 40

as: x + 3y = 60 as: 2x + y = 50 as: x + y = 40
x + 3y = 60 x + 3y = 60 2x + y = 50
2x + y = 50 x + y = 40 x + y = 40
x + 3y = 60 2y = 20 x = 10
–6x – 3y = –150 y = 10
–5x = –90
x = 18
Multiply 2nd line by –3. Subtract straight down: 2y = 20 Subtract straight down: x = 10
Add straight down: –5 = –90 Divide by 4: y = 10
Divide by –5: x = 18
Use x to solve for y: Use y to solve for x: Use x to solve for y:

x + 3y = 60 2x + y = 50 x + 3y = 60 x + y = 40 2x + y = 50 x + y = 40
(18) + 3y = 60 2(18) + y = 50 x + 3(10) = 60 x + (10) = 40 2(10) + y = 50 (10) + y = 40
3y = 60 – 18 y = 50 – 36 x = 60 – 30 x = 40 – 10 y = 50 – 20 y = 40 – 10
3y = 42 y = 14 x = 30 x = 30 y = 30 y = 30
y = 14
coordinates: (18, 14) coordinates: (30, 10) coordinates: (10, 30)
not a vertex one of the vertices one of the vertices
103
Tutorial 1.38 Solve applications involving linear programming.

When we are solving real-world applications where linear programming might be useful, we will need
to translate the written word into an appropriate (equivalent) set of inequalities that can then be solved
as a system (as was explained in previous tutorials).
example 1.38a The Monmouth Bakery Company makes regular cake mixes as well as
gourmet pancake mixes that are sold at various groceries stores in the area:
• Each pound of the regular cake mix uses 0.4 pound of flour and 0.1
pound of shortening.
• Each pound of the gourmet pancake mix uses 0.6 pound of flour, 0.1
pound of shortening and 0.4 pound of sugar.
• Suppliers can deliver at most 8400 pounds of flour, at least 800
pounds of shortening, and at most 2000 pounds of sugar.
If the profit per pound is 25¢ for regular cake mix and 35¢ for gourmet
pancake mix, how many pounds of each mix should be made to earn
maximum profit? What is that maximum profit?

Sometimes, translation is made a bit easier by organizing the given information into a data table (as has
been done in the table at the left below). We can then use the organized table to write the constraints for
the given word problem. Notice that the supplier can deliver at most one quantity and at least another.
In mathematical translations, at most is translated into the ≤ (is less than or equal to) sign because the
amount delivered cannot go over the stated amount. The phrase at least is translated into the ≥ (is greater
than or equal to) sign because the amount delivered cannot be any lower than the stated amount. Also,
remember that when completing a real-world business application, we want to use numbers that are
greater than or equal to zero…thus: x ≥ 0 and y ≥ 0. The information given about the profit will aid us
in creating the objective function for this scenario.
x y constraints (inequalities):
cake pancake symbol totals flour: 0.4x + 0.6y £ 8400
flour: 0.4 0.6 ≤ 8400 shortening: 0.1x + 0.1y ≥ 800
shortening: 0.1 0.1 ≥ 800 sugar: 0.4y £ 2000
sugar: 0.0 0.4 ≤ 2000 x-values: x≥0
profits: 0.25 0.35 = MAX y-values: y≥0
objective: F = 0.25x + 0.35y
Now that we have the system of inequalities and the objective function translated from the given word
problem, we can now go about the task of graphing the system on a coordinate grid, shading in the
feasible solution region, determining the coordinates of any appropriate vertices and then determining
the values of x and y that produce the optimal maximum profit for this given situation.
Note that one of the constraints (inequalities) has a different relationship sign than the others…thus, we
have a system with mixed constraints. When shading, we will need to pay attention to this fact so that
we arrive at the correct feasible solution region.
105

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x y F = 0.25x + 0.35y
3000 5000 F = 0.25(3000) + 0.35(5000) = 2500
13,000 5000 F = 0.25(13000) + 0.35(5000) = 5000
21,000 0 F = 0.25(21000) + 0.35(0) = 5250
8000 0 F = 0.25(8000) + 0.35(0) = 2000
106
Finally, just find the highest (maximum) value of these evaluations. Using the vertex coordinates, we
obtain the evaluations of: 2500, 5000, 5250 and 2000…the highest of these evaluations being: 5250.
Therefore, the optimal maximum value for the given constraints is:
MAX = 5250 when x = 21000 and y = 0
(which might mean stopping production of the gourmet pancake mixes).
example 1.38b The Monmouth Drapery Company makes 3 types of draperies at 2 different
locations:
• At location #1, it can make 20 pairs of deluxe drapes, 15 pairs of

better drapes, and 6 pairs of standard drapes per day.
• At location #2, it can make 10 pairs of deluxe drapes, 20 pairs of
better drapes, and 12 pairs of standard drapes per day.
The company has orders for 2000 pairs of deluxe drapes, 2250 pairs of better
drapes, and 1200 pairs of standard drapes. If the daily costs are $900 per
day at location #1 and $750 per day at location #2, how many days should
be scheduled at each location in order to fill the orders at minimum cost?
What is that minimum cost?

x y constraints (inequalities):
location 1 location 2 symbol orders deluxe: 20x + 10y ≥ 2000
deluxe 20 10 ≥ 2000 better: 15x + 15y ≥ 2250
better 15 15 ≥ 2250 standard: 6x + 12y ≥ 1200
standard 6 12 ≥ 1200 x-values: x≥0
daily costs 900 750 = MIN y-values: y≥0
objective: F = 900x + 750y

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Once we have the vertex coordinates, we can evaluate the given objective function:
vertices objective
x y F = 900x + 750y
0 200 F = 900(0) + 750(200) = 150,000
50 100 F = 900(50) + 750(100) = 120,000
100 50 F = 900(100) + 750(50) = 127,500
200 0 F = 900(200) + 750(0) = 180,000
Finally, just find the highest (maximum) value of these evaluations. Using the vertex coordinates, we
obtain the evaluations of 150,000
120,000
127,500
180,000
The lowest of these evaluations is: 120,000. Therefore, the optimal minimum value for the given constraints
is: MAX = $120,000 when x = 50 and y = 100 (which means that the company should schedule 50 days
at location #1 and 100 days at location #2 to make enough draperies to satisfy the given orders).

FULL ENGAGEMENT…
RUN FASTER.
1349906_A6_4+0.indd 1 22-08-2014 12:56:57


Quantitative Analysis Matrices & Array Operations
2 Matrices & Array Operations

Tutorial 2.1 Determine the number of rows or columns in a matrix.
Occasionally, numeric data can be organized in a rectangular array  ↑ 

 
called a matrix where each of the rows (running from left to right)  ← row →   
   column 
and each of the columns (running up and down) represent very    ↓ 
 
specific information.
The number of rows and columns are important pieces of information when we need to compute (add,
subtract or multiply) with matrices (the plural of matrix).
Consider these matrices…

1 2 3 4
1 2 3 5 6 7 8
1 2 3 4  4 5 6  
M 1 = 5 6 7 8  M2 =   M 3 =  9 10 11 12 
7 8 9  
9 10 11 12    13 14 15 16 
10 11 12  17 18 19 20 
NOTE: Being an orderly bunch, mathematicians tend to name matrices with a capital letter and/or
subscripted variables as was done above.
example 2.1a How many rows are in M1 (matrix #1) from above?
answer: Matrix #1 has 3 rows.
example 2.1b How many rows are in M2 (matrix #2) from above?
example 2.1c How many rows are in M3 (matrix #3) from above?
example 2.1d How many columns are in M1 (matrix #1) from above?
answer: Matrix #1 has 4 columns.
example 2.1e How many columns are in M2 (matrix #2) from above?
example 2.1f How many columns are in M3 (matrix #3) from above?
110
Tutorial 2.2 Determine the order (dimensions) of a matrix.

When we want to add, subtract or multiply matrices, we will need to determine the order of the given
matrices so that the proper calculations can be completed. The order of any matrix is nothing more than
its dimensions expressed by its number of rows by its number of columns (R × C).
1 2 3 4
1 2 3 5 6 7 8
1 2 3 4  4 5 6  
M 1 = 5 6 7 8  M2 =   M 3 =  9 10 11 12 
7 8 9  
9 10 11 12    13 14 15 16 
10 11 12  17 18 19 20 
example 2.2a What is the order of M1 (matrix #1) from above?

matrix #1 has 3 rows and 4 columns → dimensions = R × C = 3 × 4 → order
=3×4
example 2.2b What is the order of M2 (matrix #2) from above?

=4×3
example 2.2c What is the order of M2 (matrix #2) from above?

=4×4
NOTE: When we multiply the number of rows by the number of columns found within a matrix, we
obtain the number of elements (members, entries) of the data set displayed in the matrix.
111
Tutorial 2.3 Identify square matrices.

When the number of rows and the number of columns within a matrix are the same value, the matrix
is considered a square matrix.
Therefore, each of these matrices is a square matrix…
1 2 3 4
1 2 3 5 6 7 8
1 2 
M4 =   M 5 =  4 5 6  M6 =  
3 4   9 10 11 12 
7 8 9   
13 14 15 16 
This matrix has 2 rows. This matrix has 3 rows. This matrix has 4 rows.
This matrix has 2 columns. This matrix has 3 columns. This matrix has 4 columns.
order = 2 × 2 order = 3 × 3 order = 4 × 4
NOTE: The number of elements (members, entries) in a square matrix is a perfect square.

Tutorial 2.4 Identify the element (entry) at a given location (MRC).

Although what each of the rows/columns represent is important when using matrices, there may be times
when we need to address just one element (member, entry) of the data being displayed in a matrix. We
can do this by thinking of any location within a matrix as being defined by coordinates that use the row/
column position as its basis. Any position (location) within a given matrix can be described by using the
name of the matrix and the row/column numbers in which the desired element is located.
1 2 3 4
1 2 3 5 6 7 8
1 2 3 4  4 5 6  
A = 5 6 7 8  B=  C =  9 10 11 12 
7 8 9  
9 10 11 12    13 14 15 16 
10 11 12  17 18 19 20 
example 2.4a Identify the element with this location: A2,3

Look for the entry that sits in the 2nd row and 3rd column of matrix A → A2,3 = 7
example 2.4b Identify the element with this location: B3,2

Look for the entry that sits in the 3rd row and 2nd column of matrix B → B3,2 = 8
example 2.4c Identify the element with this location: C3,3

Look for the entry that sits in the 3rd row and 3rd column of matrix C → C3,3 = 11
example 2.4d Identify the location of: 10 = AR,C

“10” is located in the 3rd row and the 2nd column of matrix A → 10 = A3,2
example 2.4e Identify the location of: 5 = BR,C

“5” is located in the 2nd row and the 2nd column of matrix B → 5 = B2,2
example 2.4f Identify the location of: 19 = CR,C

“19” is located in the 5th row and the 3rd column of matrix C → 19 = C5,3
113
Tutorial 2.5 Determine a zero matrix with a given order.

Just as we use zero as a place-holder when we are writing numbers (such as 101 or 2005), we may need
the use of a zero-matrix…a matrix where all of the entries are zero (0).
1 2 3 4
1 2 3 5 6 7 8
1 2 3 4  4 5 6  
A = 5 6 7 8  B=  C =  9 10 11 12 
7 8 9  
9 10 11 12     13 14 15 16 
10 11 12  17 18 19 20 
Write the zero-matrix that has the same order as:
example 2.5a – matrix A example 2.5b – matrix B example 2.5c – matrix C

order of [A] = R × C = 3 × 4 order of [B] = R × C = 4 × 3 order of [C] = R × C = 5 × 4
0 0 0 0
0 0 0 0
0 0 0 0  0 0 0 0 
0 0 0 0   0 0  
  0 0 0 0
0 0 0  
0 0 0 0    0 0 0 0
0 0 0
0 0 0 0 
114
Tutorial 2.6 Find the transpose of a matrix.

The order of a given matrix is important. However, a given matrix may not have an appropriate order
(dimensions) for a particular use. Therefore, there may be times when we want to rearrange or transpose
the order of a matrix. When we perform a transposition for a given matrix, we swap the elements
(members, entries) so that the first row becomes the first column, the second row becomes the second
column, the third row becomes the third column, and so on.
The mathematical symbol for a transposed matrix name “M” is: MT
1 2 3 4
1 2 3 5 6 7 8
1 2 3 4  4 5 6  
A = 5 6 7 8  B=  C =  9 10 11 12 
7 8 9  
9 10 11 12    13 14 15 16 
10 11 12  
17 18 19 20 
example 2.6a – Find AT example 2.6b – Find BT example 2.6c – Find CT

order of [A] = R × C = 3 × 4 order of [B] = R × C = 4 × 3 order of [C] = R × C = 5 × 4
order of AT = C × R = 4 × 3 order of BT = C × R = 3 × 4 order of CT = C × R = 4 × 5
1 5 9 1 5 9 13 17 
2  1 4 7 10 
6 10  2 6 10 14 18 
AT =  B =  2 5 8 11
T 
CT = 
3 7 11 3 7 11 15 19 
   3 6 9 12   
4 8 12  4 8 12 16 20 
115
Tutorial 2.7 Determine the negative of a matrix.

Just as we have negative numbers (which is really nothing more than a number with a minus sign in
front), we also have negative matrices…which is nothing more than putting a minus sign in front of
each of the given elements (members, entries).
The mathematical symbol for a negative matrix name “M” is: –M

1 2 3 4
1 2 3 5 6 7 8
1 2 3 4  4 5 6  
A = 5 6 7 8  B=  C =  9 10 11 12 
7 8 9  
9 10 11 12     13 14 15 16 
10 11 12  17 18 19 20 
example 2.7a – Find –[A] example 2.7b – Find –[B] example 2.7c – Find –[C]
Multiply each element by –1 Multiply each element by –1 Multiply each element by –1
 −1 −2 −3 −4 
 −1 −2 −3   −5 −6 −7 −8 
 −1 −2 −3 −4   −4 −5 −6   
− A = −5 −6 −7 −8  −B =   9 −10 −11 −12 
− C =−
 −7 −8 −9   
 −9 −10 −11 −12     −13 −14 −15 −16 
 −10 −11 −12   −17 −18 −19 −20 
www.sylvania.com
We do not reinvent
light.
light every day.
Light is OSRAM

Tutorial 2.8 Use matrices to present and interpret given data.

example 2.8 A poll of 5004 people was completed asking the respondents their registered
political party and their opinion about how they felt about the NJ Governor’s
job performance:
• Of those registered as Democrats (D), 387 approved, 680 did not

approve and 139 had no opinion.
• Of those registered as Republicans (R), 1270 approved, 640 did not
• Of those registered as Independents (I), 204 approved, 192 did not
• Of those who were not registered (NR), 139 approved, 97 did not
a) Use the given information to create a 4 × 3 matrix.

b) Use the given information to create a 3 × 4 matrix.
c) What is the relationship between the two matrices?
d) How many Democrats (D) were included in the poll results?
e) How many Republicans (R) were included in the poll results?
f) How many Independents (I) were included in the poll results?
g) How many poll respondents were not registered?
h) How many poll respondents approved of the Governor’s job
performance?
i) How many poll respondents did not approve of the Governor’s job
performance?
j) How many poll respondents had no opinion toward the Governor’s job
performance?
answers:
a) Since the desired matrix is to have 4 rows approve disapprove no opinion
and 3 columns, we need to determine the D 387 680 139
labels for these rows and columns. We have R 1270 640 1131
4 political affiliations, so these affiliations I 204 192 58
should be the labels for the rows. We have NR 139 97 67
3 approval ratings so these ratings should
be the labels for the columns.
117
b) Since the desired matrix is to have D R I NR

3 rows and 4 columns, we need to approve 387 1270 204 139
determine the labels for these rows and disapprove 680 640 192 97
columns. We have 3 approval ratings, so no opinion 139 1131 58 67
these ratings should be the labels for the
rows. We have 4 political affiliations, so
these affiliations should be the labels for
the columns.
c) The two matrices created in parts A and B are transposes of each other since the rows and
columns were switched (transposed).
d) Use either of the matrices created in part A or part B and add the numbers associated with
the “democrat” label: 387 + 680 + 139 = 1206.
e) Use either of the matrices created in part A or part B and add the numbers associated with
the “republican” label: 1270 + 640 + 1131 = 3041.
f) Use either of the matrices created in part A or part B and add the numbers associated with
the “independent” label: 204 + 192 + 58 = 454.
g) Use either of the matrices created in part A or part B and add the numbers associated with
the “not registered” label: 139 + 97 + 67 = 303.
h) Use either of the matrices created in part A or part B and add the numbers associated with
the “approved” label: 387 + 1270 + 204 + 139 = 2000.
i) Use either of the matrices created in part A or part B and add the numbers associated with
the “disapproved” label: 680 + 640 + 192 + 97 = 1609.
j) Use either of the matrices created in part A or part B and add the numbers associated with
the “no opinion” label: 139 + 1131 + 58 + 67 = 1395.
118
Tutorial 2.9 Add matrices.

When we need to add two or more matrices together, we must first make sure that the order of each
matrix to be added is the same as the others. We cannot add matrices if these dimensions are different.
Once we have established that the given matrices can in fact be added, we just add elements (members,
entries) that are located in the same spot of each matrix. The sum of these multiple additions will be
written in the common location in the answer matrix:
a b c d  n p q r  a + n b + p c + q d + r 
e f g h  +  s t u v  =e + s f + t g + u h + v 
  
 i j k m   w x y z   i + w j + x k + y m + z 
 1 2 3  10 11 12 
example 2.9a Find the sum of:  4 5 6  + 13 14 15 
   
360°
 7 8 9  16 17 18 
Following the general rule for adding matrices:
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1 2 3 4  1 2 3 4 
example 2.9b Find the sum of:  5 6 7 8  +  5 6 7 8 

 9 10 11 12   9 10 11 12 
Following the general rule for adding matrices:
ª º ª º

« »» « »
« « »
«¬ »¼ «¬ »¼
1 2 3
1 2 3 4  
4 5 6 
example 2.9c Find the sum of:  5 6 7 8  + 
  7 8 9
 9 10 11 12   
10 11 12 
The first matrix has an order of: 3 × 4 while the second matrix has an order
of: 4 × 3. Since these dimensions are not identical, these matrices cannot be
added together.
NOTE: As long as the dimensions of the matrices that are to be added are the same, it makes no difference
which of the matrices comes first. Therefore, the Commutative Property applies to the addition
of matrices.
Tutorial 2.10 Subtract matrices.

When we need to subtract two or more matrices, we must first make sure that the order of each matrix
to be added is the same as the others. We cannot subtract matrices if these dimensions are different.
Once we have established that the given matrices can in fact be subtracted, we just subtract elements
(members, entries) that are located in the same spot of each matrix. The difference of these multiple
subtractions will be written in the common location in the answer matrix:
a b c d  n p q r  a − n b − p c − q d − r 
 h  −  s t u v  =e − s f − t g − u h − v 
e f g  
 i j k m   w x y z   i − w j − x k − y m − z 
 -1 2 -3   10 -11 12 
example 2.10a Find the difference of: 4 -5 6  -  -13 14 -15 

   
 -7 8 -9   16 -17 18 
Following the general rule for subtracting matrices:
120
 -1-10 2 - (-11) -3 -12   -11 13 -15 

 4 - (-13) -5 -14 6 - (-15)  =  17 -19 21 
   
 -7 -16 8 - (-17) -9 -18  -23 25 -27 
 0 -2 3 -4   -1 2 0 4
example 2.10b Find the difference of:  -5 6 -7 8  -  5 -6 7 -8 
  
 9 -10 11 -12   -9 10 -11 12 
Following the general rule for subtracting matrices:
0 - (-1) -2 - 2 3-0 -4 - 4   1 -4 3 -8 
 -5 - 5 6 - (-6) -7 - 7 8 - (-8)  = -10 0 -14 0 
 

9 - (-9) -10 -10 11- (-11) -12 -12   0 -20 0 -24 
1 2 3
1 2 3 4   
example 2.10c Find the difference of:  5 6 7 8  -  4 5 6 
  7 8 9
 9 10 11 12   
10 11 12 
The first matrix has an order of: 3 × 4 while the second matrix has an order of:
4 × 3. Since these dimensions are not identical, these matrices cannot be
subtracted.
NOTE: Since the second matrix in each matrix subtraction becomes its negative, the order in which the
problem is presented makes a difference. Therefore, the Commutative Property does not apply
to matrix subtraction.
121
Tutorial 2.11 Use matrix addition and/or subtraction to solve real-world business
applications.
example 2.11 Complete this real-world application:
The Monmouth Cabinet Company manufactures bookcases and filing cabinets

at two different plants (A, B). Matrix “M” displays the production for the two
plants during the month of September. Matrix “N” displays the production for
the two plants during the month of October:
A B A B
100 200 bookcases 200 400 bookcases
M= N=
150 300 filing cabinets 300 600 filing cabinets
Matrix “P” represents the inventories at the plants at the beginning of September
and matrix “S” represents the shipments from the plants during September:
A B A B
150 250 bookcases 250 350 bookcases
P= S=
350 450 filing cabinets 450 550 filing cabinets


a) Use the proper array (matrix) operation to produce the matrix that
represents the total production at the two plants for September and
October by performing the proper matrix operation.
b) Use the proper array (matrix) operations involving matrices “M”, “P”
and “S” to create the matrix that represents the inventories at the end of
September.
c) If matrix “P” also represents the inventories at the plants at the beginning
of October and matrix “S” also represents shipments from the plants
during October, use the proper array (matrix) operations to create the
matrix that represents the inventories at the end of October.
answers:
a) To find the “total” production of the two plants, we should complete: [M] +[N]
100 200   200 400  100 + 200 200 + 400   300 600 
150 300  +  300 600  = 150 + 300 300 + 600  =  450 900 
       
b) To find the inventories at the end of September, we should complete: [M] + [P] – [S]
100 200  150 250   250 350  100 +150 - 250 200 + 250 - 350   0 100 
150 300  + 350 450  -  450 550  = 150 + 350 - 450 300 + 450 - 550  = 50 200 
         
c) To find the inventories at the end of October, we should complete: [N] + [P] – [S]
 200 400  150 250   250 350   200 +150 - 250 400 + 250 - 350  100 300 
 300 600  + 350 450  -  450 550  = 300 + 350 - 450 600 + 450 - 550  =  200 500 
         
123
Tutorial 2.12 Multiply a matrix by a scalar (real number).

Each element (member, entry) within a matrix can be multiplied by one number called the scalar. This
scalar multiplication might be useful when we want to increase (decrease) the entries within a matrix
by the same rate…such as a 15% mark-up (as will be done in example 2.12b) or a 15% mark-down (as
will be done in example 2.12c).
 1 -2 3 
example 2.12a Complete this scalar multiplication: 5  -4 5 -6 
 7 -8 9 
Multiply each of the elements by the scalar (5):
 5(1) 5(-2) 5(3)   5 -10 15 

5(-4) 5(5) 5(-6)  = -20 25 -30 
   
 5(7) 5(-8) 5(9)   35 -40 45 
100 200 
example 2.12b Complete this scalar multiplication: 1.15  
 300 400 
Multiply each of the elements by the scalar (1.15):
1.15(100) 1.15(200)  115 230 

1.15(300) 1.15(400)  =  345 460 
   
100 200 
example 2.12c Complete this scalar multiplication: 0.85  
 300 400 
Multiply each of the elements by the scalar (0.85):
 0.85(100) 0.85(200)   85 170 

0.85(300) 0.85(400)  =  255 340 
   
4 3 8 7 
example 2.12d Complete this matrix problem: 4   + 3 
2 1 6 5 
 4 3  4(4) 4(3)  16 12 

Complete first scalar multiplication:
= 4  =   
 2 1  4(2) 4(1)   8 4 
8 7   3(8) 3(7)   24 21
Complete second scalar multiplication:
= 3  =   
6 5  3(6) 3(5)  18 15 
16 12   24 21 16 + 24 12 + 21  40 33 
Add products:  + =   =   
 8 4  18 15   8 + 18 18 + 15   26 33 
124
4 3 8 7 
example 2.12e Complete this matrix problem: 3   - 4 
 2 1  6 5 
 4 3 3(4) 3(3)  12 9 

Complete first scalar multiplication:
= 3  =   
 2 1 3(2) 3(1)   6 3
8 7   -4(8) -4(7)  -32 -28

Complete second scalar multiplication:
= -4   =   
6 5  -4(6) -4(5)  -24 -20 
Subtract products: 12 9  + -32 -28  12 - 32 9 - 28 -20 -19 

 6 3 -24 -20 = =
  6 - 24 3 - 20  -18 -17 
       
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Tutorial 2.13 Find the product of given matrices.

Two matrices (of any dimension R × C) may be multiplied if the number of columns (which run up
and down) in the first matrix equals the number of rows (which run left to right) in the second matrix.
The two matrices presented below may be multiplied together. The order (R × C) of the first matrix is 3 × 2
while the order (R × C) of the second matrix is 2 × 4. Since the number of columns in the first matrix
is equal to the number of rows in the second matrix, the given matrices may be multiplied as presented.
a b
c  s t u v
d  × 
 w x y z 
 e f  
However, if these same matrices are reversed, the order (R × C) of the first matrix is 2 × 4 while the
order (R × C) of the second matrix is 3 × 2. Since the number of columns in the first matrix no longer
equals the number of rows in the second matrix, the given matrices cannot be multiplied as presented.
a b
 s t u v 
w x y z  × c d 
  e f 

Therefore, it is very important that we pay attention to the dimensions of the given matrices and in the
order in which we pose a matrix multiplication problem.
When we multiply two matrices that are appropriately presented, we take the elements (members, entries)
from the first row of the first matrix, multiply them with the respective elements (members, entries)
from each of the columns from the second matrix and then add the products together. Notice how the
product of the matrices from above is achieved:
a b  as + bw at + bx au + by av + bz 
c   s t u v 
 d×  =
 cs + dw ct + dx cu + dy cv + dz 
w x y z
 e f    es + fw et + fx eu + fy ev + fz 
NOTE: Since the number of columns in the first matrix is equal to the number of rows in the second
matrix (C1 = R2), these matrices can be multiplied as presented. The product of these matrices
will have the dimensions defined by the number of rows in the first matrix by the number of
columns in the second matrix: R1 × C2
As shown above, the order in which the matrices appear in the problem makes a difference.
Therefore, the Commutative Property does not apply to matrix multiplication unless the two
matrices being multiplied are both the same size square matrices.
126
example 2.13a Determine whether these matrices can be multiplied as presented:
1 2 3 4
1 2 3  
4 5 6 5 6 7 8
  ×  9 10 11 12 
7 8 9  
  13 14 15 16 
10 11 12  
17 18 19 20 
1. Determine the matrix orders: [R1 × C1] × [R2 × C2] = [4 × 3] × [5 × 4]

2. Compare C1 and R2…Are they equal or not equal???
3. Since C1 ≠ R2, these matrices cannot be multiplied as presented.
example 2.13b Determine whether these matrices can be multiplied as presented:
1 2 3 4
5 6 7 8 1 2 3
  4 5 6
 9 10 11 12  ×  
  7 8 9
13 14 15 16  10 11 12 
17 18 19 20   

3. Since C1 = R2, these matrices can be multiplied as presented.
NOTE: This product will be a 5 × 3 matrix.
example 2.13c Determine whether these matrices can be multiplied as presented:
1 2 3
1 2 3 4   
5 6 7 8  ×  4 5 6 
  7 8 9
9 10 11 12   
10 11 12 

127
example 2.13d Determine whether these matrices can be multiplied as presented:
1 2 3
 4 5 6  1 2 3 4 
  × 5 6 7 8 
7 8 9  
    9 10 11 12 
10 11 12 


1 2 3
1 2 3 4  
   4 5 6 
example 2.13e Find this matrix product: 5 6 7 8  ×
7 8 9
9 10 11 12   
10 11 12 

2. Compare C1 and R2…C1 = R2…OK to multiply.
3. Determine the order of the product: [3 × 3]

4. Multiply the entries in the Nth row of the first matrix by the respective entries in the Nth
column of the second matrix, entering the results in the appropriate cells.
Generally:
n p q
a b c d   an + br + cu + dx ap + bs + cv + dy aq + bt + cw + dz 
e r s t 
 f g h  ×  = en + fr + gu + hx ep + fs + gv + hy eq + ft + gw + hz 
 
u v w
 i j k m     in + jr + ku + mx ip + js + kv + my iq + jt + kw + mz 
x y z
Specifically:
 1(1) + 2(4) + 3(7) += 4(10) 70 1(2) + 2(5) + 3(8) +=4(11) 80 1(3) + 2(6) + 3(9) +=
4(12) 90 
 5(1) + 6(4) + 7(7) = + 8(10) 158 5(2) + 6(5) + 7(8) =
+ 8(11) 184 + 8(12) 210 
5(3) + 6(6) + 7(9) =

9(1) + 10(4) + 11(7) + 12(10)
= 246 9(2) + 10(5) + 11(8) + 12(11) 330 
= 288 9(3) +10(6) + 11(9) + 12(12) =
 70 80 90 
requested product: 158 184 210 
 
 246 288 330 
1 2 3
 4 5 6  1 2 3 4 
example 2.13f Find this matrix product:   × 5 6 7 8 
7 8 9  
  9 10 11 12 
10 11 12 

column of the second matrix, entering the results in the appropriate cells:
Generally:
n p q  na + pe + qi nb + pf + qj nc + pg + qk nd + ph + qm 
r a b c d 
s t   ra + se + ti rb + sf + tj rc + sg + tk rd + sh + tm 
 × e f g h  = 
u v w   ua + ve + wi ub + vf + wj uc + vg + wk ud + vh + wm 
  i j k m   
x y z   xa + ye + zi xb + yf + zj xc + yg + zk xd + yh + zm 
129
Specifically:
 1(1) + 2(5) =+ 3(9) 38 1(2) + 2(6) +=3(10) 44 1(3) + 2(7) +=3(11) 50 1(4) + 2(8) +=3(12) 56 
 4(1) + 5(5) += 6(9) 83 4(2) + 5(6) + 6(10)
= 98 4(3) + 5(7) + 6(11)
= 113 4(4) + 5(8) + 6(12)
= 128 

 7(1) + 8(5)=+ 9(9) 128 7(2) + 8(6) =+ 9(10) 152 7(3) + 8(7)= + 9(11) 176 7(4) + 8(8) + 9(12) = 200 
 
10(1) + 11(5) + 12(9)
= 173 10(2) + 11(6) + 12(10)
= 206 10(3) + 11(7) + 12(11)
= 239 10(4) + 11(8) + 12(12)
= 272 
 38 44 50 56 
 83 98 113 128 
requested product:  
128 152 176 200 
 
173 206 239 272 
Notice that the given matrices in example 2.13c have been reversed to create example 2.13d. As seen in
example 2.13e and example 2.13f, the reversal of the matrices will produce a very different answer. Since
both of these presentations can be multiplied and matrix multiplication is not normally commutative, it
is very important that we put the desired matrices into the proper order to achieve the desired product.
If these matrices were derived from a real-world application, we would definitely need to pay attention
to the order in which the matrix multiplication is presented.

Tutorial 2.14 Complete matrix multiplication involving zero matrices.

Although there probably will never be a time that we actually need to multiply by a zero matrix, we
should examine what happens when we do…
0 0 0
1 2 3 4  
0 0 0 
example 2.14a Find this matrix product: 5 6 7 8  × 
0 0 0
9 10 11 12   
0 0 0

Generally:
n p q
e r s t 
 
u v w
 i j k m     in + jr + ku + mx ip + js + kv + my iq + jt + kw + mz 
x y z
Specifically:
 1(0) + 2(0) + 3(0) + =4(0) 0 1(0) + 2(0) + 3(0) + =

4(0) 0 1(0) + 2(0) + 3(0) + =
4(0) 0 
 5(0) + 6(0) + 7(0) += 8(0) 0 5(0) + 6(0) + 7(0) +=8(0) 0 5(0) + 6(0) + 7(0) +=8(0) 0 

9(0) + 10(0) + 11(0) + 12(0)= 0 9(0) + 10(0) + 11(0) + 12(0)= 0 9(0) + 10(0) + 11(0) + 12(0)= 0 
0 0 0 
requested product: 0 0 0 
0 0 0 
1 2 3
0 0 0 0 
4 5 6 
example 2.14b Find this matrix product: 0 0 0 0  × 
7 8 9
0 0 0 0   
10 11 12 

131
Generally:
n p q
e r s t 
 
u v w
 i j k m     in + jr + ku + mx ip + js + kv + my iq + jt + kw + mz 
x y z
Specifically:
0(1) + 0(4) + 0(7) + 0(10)

= 0 0(2) + 0(5) + 0(8) + 0(11)
= 0 0(3) + 0(6) + 0(9) + 0(12)
= 0
0(1) + 0(4) + 0(7) + 0(10)
= 0 0(2) + 0(5) + 0(8) + 0(11) = 0 
= 0 0(3) + 0(6) + 0(9) + 0(12)

0(1) + 0(4) + 0(7) + 0(10)
= 0 0(2) + 0(5) + 0(8) + 0(11) = 0 
= 0 0(3) + 0(6) + 0(9) + 0(12)
0 0 0 
requested product: 0 0 0 
 
0 0 0 
Notice that whether the zero matrix comes first or second, the product is still a zero matrix with the same
dimensions. Assuming that the presentation of matrix multiplication will allow for the multiplication
process, multiplying by a zero matrix is an exception to the fact that matrix multiplication is not
commutative.

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Tutorial 2.15 Complete matrix multiplication involving identity matrices.

When working with matrices, an identity matrix is a square matrix that contains the value of one (1) as
the entries on the main diagonal and all of the other entries are zero. Two examples of identity matrices
are shown below. Notice where the ones (1) are located.
3 × 3 identity matrix 4 × 4 identity matrix

1 0 0  1 0 0 0
0 1 0  0 1 0 0 
  
0 0 1  0 0 1 0
 
0 0 0 1
1 2 3 4
 5 6 7 8  1 0 0 0
  0 1 0 0 
example 2.15a Find this matrix product:  9 10 11 12  × 
  0 0 1 0
13 14 15 16  0 0 0 1

17 18 19 20  

 1(1) + 2(0) + 3(0) + 4(0) = 1 1(0) + 2(1) + 3(0) + 4(0) = 2 1(0) + 2(0) + 3(1) + 4(0) = 3 1(0) + 2(0) + 3(0) + 4(1) = 4 
 5(1) + 6(0) + 7(0) + 8(0) = 5 5(0) + 6(1) + 7(0) + 8(0) = 6 5(0) + 6(0) + 7(1) + 8(0) = 7 5(0) + 6(0) + 7(0) + 8(1) = 8 

 9(1) +10(0) +11(0) +12(0) = 9 9(0) +10(1) +11(0) +12(0) = 10 9(0) +10(0) +11(1) +12(0) = 11 9(0) +10(0) +11(0) +12(1) = 12 
 
13(1) +14(0) +15(0) +16(0) = 13 13(0) +14(1) +15(0) +16(0) = 14 13(0) +14(0) +15(1) +16(0) = 15 13(0) +14(0) +15(0) +16(1) = 16 
17(1) +18(0) +19(0) + 20(0) = 17 17(0) +18(1) +19(0) + 20(0) = 18 17(0) +18(0) +19(1) + 20(0) = 19 17(0) +18(0) +19(0) + 20(1) = 20 
 
1 2 3 4
5 6 7 8
 
requested product:  9 10 11 12 
 
13 14 15 16 
17 18 19 20 
ª º ª º
« »» «« »»
«
example 2.15b Find this matrix product: « » î « »
« » « »
« » « »
«¬ »¼ «¬ »¼
133

 1(1) + 0(5) + 0(9) + 0(13) + 0(17) = 1 1(2) + 0(6) + 0(10) + 0(14) + 0(18) = 2 1(3) + 0(7) + 0(11) + 0(15) + 0(19) = 3 1(4) + 0(8) + 0(12) + 0(16) + 0(20) = 4 
 0(1) +1(5) + 0(9) + 0(13) + 0(17) = 5 0(2) +1(6) + 0(10) + 0(14) + 0(18) = 6 0(3) +1(7) + 0(11) + 0(15) + 0(19) = 7 0(4) +1(8) + 0(12) + 0(16) + 0(20) = 8 
 
 0(1) + 0(5) +1(9) + 0(13) + 0(17) = 9 0(2) + 0(6) +1(10) + 0(14) + 0(18) = 10 0(3) + 0(7) +1(11) + 0(15) + 0(19) = 11 0(4) + 0(8) +1(12) + 0(16) + 0(20) = 12 
 
 0(1) + 0(5) + 0(9) +1(13) + 0(17) = 13 0(2) + 0(6) + 0(10) +1(14) + 0(18) = 14 0(3) + 0(7) + 0(11) +1(15) + 0(19) = 15 0(4) + 0(8) + 0(12) +1(16) + 0(20) = 16 
0(1) + 0(5) + 0(9) + 0(13) +1(17) = 17 0(2) + 0(6) + 0(10) + 0(14) +1(18) = 18 0(3) + 0(7) + 0(11) + 0(15) +1(19) = 19 0(4) + 0(8) + 0(12) + 0(16) +1(20) = 20 
 
1 2 3 4
5 6 7 8
 
requested product:  9 10 11 12 
 
13 14 15 16 
17 18 19 20 
Notice that when multiplying by an identity matrix, the product will be the matrix that is not the identity.
If the identity matrix is second in the multiplication presentation, its dimensions must agree with the
number of columns in the first matrix. If the identity matrix is first, then its dimensions must agree with
the number of rows in the second matrix.
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Tutorial 2.16 Use matrix multiplication to solve real-world business applications.

example 2.16 Use matrices to complete:
The annual budget of the Monmouth Corporation has the following expenses
for the named departments:
PDQXIDFWXULQJ RIILFH VDOHV VKLSSLQJ DFFRXQWLQJ PDQDJHPHQW

VXSSOLHV
FRPPXQLFDWLRQ
WUDQVSRUWDWLRQ
VDODULHV
XWLOLWLHV
PDWHULDOV
a) Create a matrix that is to be multiplied with the given matrix above

so that the product of the two matrices will reflect at 15% increase in
manufacturing, sales and shipping but a 7.5% decrease in the other
departments (office, accounting, management).
b) Multiply the given matrix from above and the matrix created in part A:
[G] × [A]
c) Create a matrix that is to be multiplied with the given matrix above
so that the product of the two matrices will reflect at 25% increase in
manufacturing, a 5% increase in office, a 7.5% increase in sales, a 25%
increase in shipping, a 7.5% increase in accounting and a 5% decrease in
management.
d) Multiply the given matrix from above and the matrix created in part C:
[G] × [C]
answers:
a) The matrix that displays the given information is a 6 × 6 matrix. Therefore, the requested
matrix should also be a 6 × 6 matrix. Since we want to display a 15% increase in the entire
first, third and fourth columns, we should place 1.15 (100% + 15% = 115%) in these
positions: A1,1 A3, 3 A4,4. Since we want to display a 7.5% decrease in the entire second, fifth
and sixth columns, we should place 0.925 (100% – 7.5% = 92.5%) in these positions: A2, 2
A5, 5 A6, 6. The remaining positions within the requested matrix should be filled with zeroes.
Thus, the requested matrix is:
135
1.15 0 0 0 0 0 
 0 0.925 0 0 0 0 

 0 0 1.15 0 0 0 
 
 0 0 0 1.15 0 0 
 0 0 0 0 0.925 0 
 
 0 0 0 0 0 0.925 
b) To find the product of [G] × [A], multiply the entries in the Nth row of the first matrix by
the respective entries in the Nth column of the second matrix:
 800 10300 10300 1200 5700 3700  1.15 0 0 0 0 0   920 9528 11845 1380 5273 3423 
 600 6200 6200 1400 300 1100   0 0.925 0 0 0 0   690 5735 7130 1610 278 1018 
     
 2300 8900 8900 1300 1300 4900   0 0 1.15 0 0 0   2645 8233 10235 1495 1203 4533 
 × = 
 251900 81700 81700 35300 54400 144300   0 0 0 1.15 0 0   289685 75573 93955 40595 50320 133478 
 30100 1100 1100 1100 1100 1100   0 0 0 0 0.925 0   34615 1018 1265 1265 1018 1018 
     
 789000 0 0 0 0 0   0 0 0 0 0 0.925  907350 0 0 0 0 0 
c) The matrix that displays the given information is a 6 × 6 matrix. Therefore, the requested
matrix should also be a 6 × 6 matrix. We want to display a 25% increase in the entire first
column, a 5% increase in the entire second column, a 7.5% increase in the entire third
column, a 25% increase in the entire fourth column, a 7.5% increase in the entire fifth
column and a 5% decrease in the entire sixth column. Thus:
• We should place 1.25 (100% + 25% = 125%) in position C1, 1.

• We should place 1.075 (100% + 7.5% = 107.5%) in position C3, 3.
• We should place 1.075 (100% + 7.5% = 107.5%) in position C5, 5.
• We should place 0.95 (100% –5% = 95%) in position C6, 6.
The remaining positions within the requested matrix should be filled with zeroes.
Thus, the requested matrix is:
1.25 0 0 0 0 0 
 0 1.05 0 0 0 0 

 0 0 1.075 0 0 0 
 
 0 0 0 1.25 0 0 
 0 0 0 0 1.075 0 
 
 0 0 0 0 0 0.95 
136
d) To find the product of [G] × [C], multiply the entries in the Nth row of the first matrix by
the respective entries in the Nth column of the second matrix:
 800 10300 10300 1200 5700 3700  1.25 0 0 0 0 0   1000 10815 11073 1500 6128 3515 
 600 6200 6200 1400 300 1100   0 1.05 0 0 0 0   750 6510 6665 1750 323 1045 
     
 2300 8900 8900 1300 1300 4900   0 0 1.075 0 0 0   2875 9345 9568 1625 1398 4655 
 × = 
 251900 81700 81700 35300 54400 144300   0 0 0 1.25 0 0   314875 85785 87828 44125 58480 137085 
 30100 1100 1100 1100 1100 1100   0 0 0 0 1.075 0   37625 1155 1183 1375 1183 1045 
     
 789000 0 0 0 0 0   0 0 0 0 0 0.95  986250 0 0 0 0 0 

Tutorial 2.17 Write the augmented matrix for a system of equations.

We can use the Gauss-Jordan Row Operations method to solve systems of equations by:
1. Rewriting the given system into an augmented matrix.

2. Perform one or more of these row operations…
a) Interchange any two rows.
b) Add a multiple of one row to another.
c) Multiply a row by a non-zero constant.
3. Use the reduced matrix to determine the solutions for the given system.
Let’s look at the very first step of the Gauss-Jordan Row Operations method…
An augmented matrix removes the variables from a given system and then displays the coefficients
(those number that were multiplied with the variables) to the left of a vertical line while the constants
that were to the right of the equals signs to the right of the vertical line. Any coefficients that are being
multiplied are thought of as negatives numbers. If a variable is missing from an equation, its coefficient
should be thought of as zero.
Write the augmented matrices for:
example 2.17a example 2.17b example 2.17c

 x − 3 y + 4z = 10  2 x − 6 y − 12 z =82  w + 4 x − 6 y − 3z = −4
   w − x − y + 2z =
2 x + 2 y + z = 15  3 x − 10 y − 20 z =135  16
 3 x − 4 y + 2z =  2 x − 17 z = 
 10  129 w + y + z = 12
 x + y + z =6
Use just the numbers that appear in the given system of equations:
1 x + −3 y + 4 z = 10  2 x + −6 y + −12 z =82 1w + 4 x + −6 y + −3 z = −4

  1w + −1 x + −1 y + 2 z =
 2 x + 2 y + 1z = 15  3 x + −10 y + −20 z =135  16
 3 x + −4 y + 2 z =  2 x + 0 y + −17 z = 
 10  129 1w + 0 x + 1 y + 1z = 12
 0 w + 1 x + 1 y + 1z =
6
 1 -3 4 10   2 −6 −12 82   1 4 −6 −3 −4 
 2 2 1 15   3 −10 −20 135   1 −1 −1 2 16 
     
 3 -4 2 10   2 0 −17 129   1 0 1 1 12 
 
0 1 1 1 6
138
Tutorial 2.18 Use a reduced matrix to determine the solutions for a given system.

a) Interchange any two rows.
b) Add a multiple of one row to another.
c) Multiply a row by a non-zero constant.
Once the Gauss-Jordan row operations have successfully been applied, an identity matrix will appear
to the right of the vertical line while the solutions appear to the left of the vertical line. The first row
provides the solution for the first variable, the second row provides the solution for the second variable,
the third row provides the solution for the third variable, and so on.
1 0 0 4
example 2.18a Use the reduced matrix to determine the solutions:  0 1 0 2 

 0 0 1 3 
3 × 3 identity matrix → 3 solutions to be read: x = 4, y = 2, z = 3
1 0 0 5 
example 2.18b Use the reduced matrix to determine the solutions:  0 1 0 2 

 0 0 1 −7 
3 × 3 identity matrix → 3 solutions to be read: x = 5, y = 2, z = –7
1 0 0 0 7
0 1 0 0 1 
example 2.18c Use the reduced matrix to determine the solutions: 
0 0 1 0 0
 
0 0 0 1 5
4 × 4 identity matrix → 4 solutions to be read: w = 7, x = 1, y = 0, z = 5
139
Tutorial 2.19 Use matrices to solve systems with unique solutions.


a) Interchange (swap) any two rows.
b) Multiply a row by a non-zero constant (any positive or negative rational number).
c) Multiply any row by a non-zero constant and then add the row to another row.
Remember that the goal of this process is to transform an augmented matrix into a “reduced matrix”
that displays an identity matrix to the left of the vertical line and the proper solutions of the system to
the right.

• 3

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To that end (in a 3 × 3 coefficient matrix), we need to address these steps:
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5 ᬚ 5 5
5 5 ᬛ 5 ᬝ
5 5 ᬜ 5


& & & & & & & & & & & &
5 ᬞ 5 5 ᬡ
5 5 5 ᬢ
5 ᬟ 5 ᬠ 5

❶ Apply a permissible row operation to fill this position (in diagram #1) with a one.
❷ Apply a permissible row operation to fill this position (in diagram #2) with a zero.
❸ Apply a permissible row operation to fill this position (in diagram #2) with a zero.
❹ Apply a permissible row operation to fill this position (in diagram #3) with a one.
❺ Apply a permissible row operation to fill this position (in diagram #4) with a zero.
❻ Apply a permissible row operation to fill this position (in diagram #4) with a zero.
❼ Apply a permissible row operation to fill this position (in diagram #5) with a one.
❽ Apply a permissible row operation to fill this position (in diagram #6) with a zero.
❾ Apply a permissible row operation to fill this position (in diagram #6) with a zero.
NOTE: If a larger number of variables is found within the given system, just continue the pattern started
in these steps.
 x − 3 y + 4z = 10

example 2.19a Solve using the Gauss-Jordan Row Operations:  2 x + 2 y + z =15
 3 x − 4 y + 2z =10

Follow these steps:

1 -3 4 10 
1. Rewrite the given system into an augmented matrix:  2 2 1 15 
 3 -4 2 10 
141
2. Perform permissible row operations in order to achieve the desired “reduced matrix”:
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5±5 o 5 ± ±
ROG5
±5 ± ±± ± ±
QHZ5 ± ±
ROG5 ±

±5 ± ±± ± ±
QHZ5 ± ±
2b. Swap R3 and R2 around (as seen below):
5 o 5 ±

5 o 5 ± ±
5 o 5 ± ±
2c. Convert the “5” in the R2C2 position (above) into a “1” by dividing all of R2 by 5:
5 o 5 ±

5y o 5 ± ±
5 o 5 ± ±
ROG5 ± ±

QHZ5 ± ±

142
2d. Use the “1” in the R2C2 position to convert the other values in C2 into zeroes:
55 o 5 ± ±

5 o 5 ± ±
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2e. Convert the “9” in the R3C3 position (above) into a “1” by dividing all of R3 by 9:
5 o 5 ± ±

5 o 5 ± ±
5y o 5
ROG5 ± ±

QHZ5

2f. Use the “1” in the R3C3 position to convert the other values in C3 into zeroes:
55 5
55 5
5 5
ROG5 ± ±

5
QHZ5
ROG5 ± ±

5
QHZ5
1 0 0 4 
3. Read the solutions from: 0 1 0 2  → x = 4, y = 2, z = 3
0 0 1 3 
Following these same basic steps, we can solve most systems no matter how many variables are contained
in the given system.
144
 2 x − 6 y − 12 z =82

example 2.19b Solve using the Gauss-Jordan Row Operations:  3 x − 10 y − 20 z =135
 2 x − 17 z = 129

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Now that the row operations have achieved an identity matrix in place of the coefficients, we can read
the solutions for the give system: x = 5, y = 2, z = –7
145
 w + 4 x − 6 y − 3z = −4
 w − x − y + 2z = 16

example 2.19c Solve using the Gauss-Jordan Row Operations: 
w + y+z= 12
 x+ y+z= 6

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Now that the row operations have achieved an identity matrix in place of the coefficients, we can read
the solutions for the give system: w = 7, x = 1, y = 0, z = 5

Tutorial 2.20 Use matrices to solve systems with non-unique solutions.

We would hope that every system that we encounter has a unique solution. However, that is not always
the case. When solving a system of equations, there are actually 3 different outcomes that might happen.
We can distinguish these outcomes by looking at their possible “reduced matrix”:
unique solution: no solution: general solution:

1 0 0 400  1 0 0 300  1 0 2 5 
0 1 0 500  0 1 0 400  0 1 −3 7 
     
0 0 1 600  0 0 0 500  0 0 0 0 
1x + 0y + 0z = 400 → x = 400 1x + 0y + 0z = 300 → x = 300 1x + 0y + 2z = 5 → x = 5 – 2z

0x + 1y + 0z = 500 → y = 500 0x + 1y + 0z = 400 → y = 400 0x + 1y – 3z = 7 → y = 7 + 3z
0x + 0y + 1z = 500 → z = 600 0x + 0y + 0z = 500 → impossible 0x + 0y + 0z = 0 → z = any real #
When we have a unique solution, there will be an identity matrix to the left of the vertical line and we
can read the solution values directly from the reduced matrix.
When we have a “no solution” situation, the bottom row will be an impossible feat. In the display above,
the third row reads: 0x + 0y + 0z = 500. There are no numbers that can replace the variables so that their
combination will equal 500. This is a definite indication that there is no solution for the given system.
When we have a “general solution” situation, the bottom row will contain all zeroes. In the display
above, the third row reads: 0x + 0y + 0z = 0…which will be true for any number that we use to replace
the variables. This is a definite indication that there will be a general solution for the given system. It is
normally expected that the last variable (in this case z) will be considered any real number…then, the
other variables will be expressed in terms of this last variable. So for the third display above, x = 5 – 2z
and y = 7 + 3z when z is any real number that is applicable for the system.
So, we attempt to complete the Gauss-Jordan Row Operations as we normally would:
1. Rewrite the given system into an augmented matrix.

2. Perform one or more of the permissible row operations.
It is not until we get close to the reduced matrix that we can then determine what type of solution we
will actually have for the given system.
148
The goal of this process is to transform an augmented matrix into a “reduced matrix” that displays an
identity matrix to the left of the vertical line and the proper solutions of the system to the right. We
will not be able to determine the actual type of solutions until we have attempted to achieve the desired
“reduced matrix”.
 2 x − y + 3z =10

example 2.20a Solve using the Gauss-Jordan Row Operations:  x + 2 y + 2 z =
10
x − 3y + z =
 ¯ 10\
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The next step for this example would be to get a 1 into the R3C3 position…BUT, this is impossible to do
with this system. Therefore, the third row of the last matrix reads: 0x + 0y + 0z = –10…which cannot
ever happen. Thus: This system has no solution.
149
 x + y + 2z = 0

example 2.20b Solve using the Gauss-Jordan Row Operations:  x + 2 y + 2 z = 0
 2 x + 3 y + 4z = 0

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The next step for this example would be to get a 1 into the R3C3 position…BUT, this is impossible to do
with this system. Therefore, the third row of the last matrix reads: 0x + 0y + 0z = 0…which will work
for any values chosen for the variables. Thus, this system has a general solution.
Reading the top two rows of the last matrix:
1x + 0y + 2z = 0 → x = –2z
0x + 1y + 0z = 0 → y = 0
0x + 0y + 0z = 0 → z = any real number
150
Tutorial 2.21 Find the inverse of a 2 × 2 square matrix.

If the product of two given matrices results in the identity matrix, then the two given matrices are
“inverses” of each other. And conversely, if two matrices are “inverses” of one another, their product
will be an identity matrix. Therefore: [A] × [A–1] = identity matrix. The symbol A–1 is the symbol for
the inverse matrix of A.
ª º ª º ª º ª º ± ª º
« » u « » « » o$ « » WKHQ$ « »

¬ ¼ ¬ ¼ ¬ ¼ ¬ ¼ ¬ ¼
The inverse of any 2 × 2 matrix can be found by using this rule:
ªD E º ª G E º
,I$ « WKHQ$± ZKHUHDG±EFz
»
¬F G ¼ DG EF «¬ F D »¼
The denominator of the fraction above is called the determinant because its value will determine whether
there actually is an inverse. If the determinant (ad – bc) equals zero, there will be no inverse for the
given matrix.
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5 9
example 2.21a Find the determinant and inverse of:  
3 7
a b  5 9 
 c d  = 3 7  → determinant = ad – bc = (5)(7) – (9)(3) = 35 – 27 = 8
   
determinant = 8
7 -9 
1  d -b  1  7 -9   8 8
inverse = A =
–1
=  =
ad - bc -c a  8 -3 5  -3 5 
 8 8
4 6 
example 2.21b Find the determinant and inverse of:  
 8 12 
a b  5 9 
 c d  = 3 7  → determinant = ad – bc = (4)(12) – (6)(8) = 48 – 48 = 0
   
determinant = 0
Because the determinant equals zero, there is no inverse for this given matrix
1 4
example 2.21c Find the determinant and inverse of:  
4 6
a b  1 4 
 c d  =  4 6  → determinant = ad – bc = (1)(3) – (4)(4) = 6 – 16 = –10
   
determinant = –10
 -6 +4 
1  d -b  1  6 -4   10 10 
inverse = A =
–1
  =   =
ad - bc -c a  -10 -4 1   +4 -1 
 10 10 
152
Tutorial 2.22 Use 2 × 2 inverse matrices to solve systems of equations.

Any system of equations may be rewritten as a matrix equation where the coefficient matrix is multiplied
by the variable matrix to obtain the constant matrix. The matrix equation can then be solved by multiplying
the constant matrix by the inverse of the coefficient matrix. Notice that the inverse matrix must appear
before the constant matrix in the proper matrix multiplication problem.
−1
3 x + y =
17  3 1   x  17   x  3 1  17 
 →  2 −1 ×  y  =3=  →  y   2 −1 ×  
2 x − y =3           3
3 x − 4 y =
−11
example 2.22a Use matrix inverses to solve: 
2 x + 3 y =
4
• Find the determinant for the coefficient matrix:
 a b   3 -4 
 c d  =  2 3  → determinant = ad – bc = (3)(3) – (–4)(2) = 9 + 8 = 17
   
• If one exists, find the inverse of the coefficient matrix:
1  d -b  1  3 +4   317 4
17 
A–1 = = =
 
ad - bc -c a  17 -2 3   -2 17 3 
17 
• Rewrite the given system as a matrix equation:
 x   317 4
17  -11
= y   -2 × 4 
3
   17 17   
• Multiply the derived inverse by the given constants:
 x  ( 317)(-11) + ( 4 17)(4) = -3317 + 16 17 = -17 17 = -1

 y  =  (-2 )(-11) + ( 3 )(4) = +22 + 12 = 34 = 2 
   17 17 17 17 17 
• Read the solutions for the system: x = –1, y = 2
2 x − 5 y =
4
example 2.22b Use matrix inverses to solve: 
3 x + 3 y =
27
• Find the determinant for the coefficient matrix:
 a b   2 -5
 c d  =  3 3  → determinant = ad – bc = (2)(3) – (–5)(3) = 6 + 15 = 21
   
• If one exists, find the inverse of the coefficient matrix:
1  d -b  1  3 +5  3 21 5
21
A–1 =   = =
ad - bc -c a  21 -3 2   -3 21 2 
21
153
• Rewrite the given system as a matrix equation:
 x   3 21 5
21 4
= y   -3  ×  27 
2
   21 21  
• Multiply the derived inverse by the given constants:
 x   ( 3 21)(4) + ( 5 21)(27) =12 21 + 135 21 =147 21 =7 

 y  = ( −3 )(4) + ( 2 )(27) = −12 + 54 = 42 = 2 
   21 21 21 21 21 
• Read the solutions for the system: x = 7, y = 2
NOTE: The desired matrix inverse may contain fractions. Remember that when we add or subtract
fractions, we need common denominators. So, it is a good idea not to simplify the fractions
within the inverse before we use the inverse in a matrix multiplication.
NOTE: If a system does not have an inverse, it does not have a unique solution. However, it may have a
general solution or no solution at all. Completing proper row operations will determine which
of these alternatives is the better choice.



Tutorial 2.23 Use row operations to find the inverse of a square matrix.
To find the inverse of any N × N matrix, we can transform an augmented matrix using “row operations”
where the original matrix (on the left of the vertical line) is converted into an identity matrix. The
resulting “inverse” will now be displayed to the right of the vertical line within the transformed matrix.
original matrix: transformed matrix:
a b c 1 0 0
→ 1 0 0 r s t
d e f 0 1 0  0 1 0 u v w
 
 g h i 0 0 1  0 0 1 x y z 
1 3 −6 
example 2.23a Use row operations to find the inverse (if one exists):  3 6 −15 

 4 0 −16 
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 −8 4 −3
 4
The inverse of the given matrix for this example is:  −1 2

3
−1 
4
 −2 1 −1 
4
This same process can be used for any N × N matrices…that is, 2 × 2 matrices, 3 × 3 matrices, 4 × 4
matrices, 5 × 5 matrices and so on. The only difference will be the number of columns and the number
of rows that need to be used during the row operations.
1 2 2
example 2.23b Use row operations to find the inverse (if one exists):  1 −3 1 
 2 −1 3 
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Since the first three columns of the third row contain zeroes, there is no way to create the desired 3 × 3
identity matrix. Thus, there is no inverse for the given matrix for this example.
NOTE: When the coefficient matrix for any system does not have an inverse, it does not have a unique
solution. Whether the system will have no solution or a general solution will depend on the
completion of the proper row operations needed to solve the system.

Tutorial 2.24 Use N × N inverse matrices to solve systems of equations.

Although we have multiple ways to solve 2 × 2 systems, using a matrix inverse may be one of the only
ways to solve larger systems with the use of some technology.
 x − y + 3z = 31

example 2.24 Solve using matrix inverses:  2 x − y + z =16
3 x − y 11
=

When solving a system larger than 2 × 2, we need to use row operations to determine the matrix inverse
of the coefficient matrix before we can complete the matrix multiplication necessary to find the solution
for the given system:
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1 -3 2 
The inverse of the given matrix for this example is: 3 -9 5 
1 -2 1 
Once we have the matrix inverse, we can complete the necessary matrix multiplication:
x 1 −3 2  31  1(31) + (−3)(16) + 2(11) =5 

 y=  3 −9 5  × 16=  3(31) + (−9)(16) + 5(11)
= 4 
      
 z  1 −2 1  11 1(31) + (−2)(16) + 1(11) =10 
x = 5, y = 4, z = 10
158
Tutorial 2.25 Use matrix inverses to solve real-world applications.

Just as we solved real-world applications using 2 × 2 systems, we may also need to solve a real-world
application that involves larger N × N systems…
example 2.25a A woman who has $270,000 to invest would like to have an annual income of
$33,000 from her investments. One safe investment pays 10% per year while a riskier
investment pays 15% per year. How much should she invest in each of these accounts?
Just as we have done in the past, we need to translate the given information into equations that can be
solved as a system. First thing to do is to select variables to be used during the solution of the problem:
x = investment at 10% rate y = investment at 15% rate
Then, we need to translate sentences into equations:
total investment amount → x + y = 270,000

annual income desired → 0.10x + 0.15y = 33,000
 1 1   x   270,000 
We then need to rewrite the system as a matrix equation:  ×  =  
0.10 0.15  y   33,000 
Using the 2 × 2 matrix inverse formula, the needed inverse is:
A–1 = = 1  d -b  1  0.15 -1 1  0.15 -1  3 −20 

= =
ad - bc -c a  0.15 - 0.10 -0.10 1  0.05 -0.10 1   −2 20 
   
Now we just need to multiply the inverse matrix by the constant matrix:
 x  3 −20   270,000   3(270,000) − 20(33,000) =150,000 

 y =  −2 20  ×  33,000  =  −2(270,000) + 20(33,000) =120,000 
      
solution: The woman should invest $150,000 at the 10% rate and $120,000 at the 15% rate.
example 2.25b A brokerage house offers three stock portfolios…
• Portfolio I consists of 2 blocks of common stock and 1 municipal bond.

• Portfolio II consists of 4 blocks of common stock, 2 municipal bonds, and 3
blocks of preferred stock.
• Portfolio III consists of 7 blocks of common stock, 3 municipal bonds, and 3
blocks of preferred stock.
A customer wants 70 blocks of common stock, 32 municipal bonds, and 33 blocks

of preferred stock. How many units of each portfolio should be offered?
159
Select variables to be used during the solution of the problem:
x = portfolio I y = portfolio II z = portfolio III
Translate sentences into equations: common stocks → 2x + 4y + 7z = 70

municipal bonds → 1x + 2y + 3z = 32
preferred stocks → 0x + 3y + 3z = 33
 2 4 7   x  70 
Rewrite the system as a matrix equation: 1 2 3  ×  y  =
 
32 
 0 3 3   z  33 
Use row operations to determine the matrix inverse for the coefficient matrix:

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The inverse of the given matrix for this example is: -1 2 1
3


 1 -2 0 
Multiply the inverse matrix by the constant matrix:
 x   −1 3 −2
 70   −1(70) + 3(32) − 2 3 (33) =
3 4
 y =      5
   −1 2 3 × 32 =
    −1(70) + 2(32) + 3 (33) =
1 1
 z   1 −2 0  33   1(70) − 2(32) + 0(33) =6 
solution: 4 units of portfolio I, 5 units of portfolio II, 6 units of portfolio III
161
Tutorial 2.26 Use a computer spreadsheet to determine the number of rows and
columns contained in a matrix and thereby determine the order of the
matrix.
A computer spreadsheet is a series of small blocks (cells) where the columns are labeled with capital
letters and the rows are labeled by numbers. To enter a matrix into Microsoft Excel, simply type each
matrix element into its own small block (cell).
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For example, suppose we want to determine the number of rows and columns contained in the matrix
at the right. First thing we would need to do is to enter the data entries onto a computer spreadsheet
(see the partial screen shot) by typing 1 into cell A1, by typing 2 into cell B1, by typing 3 into cell C1,
by typing 4 into cell D1, by typing 5 in cell A2, by typing 6 in cell B2, by typing 7 in cell C2, by typing
8 in cell D2, by typing 9 in cell A3, by typing 10 in cell B3, by typing 11 in cell C3, by typing 12 in cell
D3, by typing 13 in cell A4, by typing 14 in cell B4, by typing 15 in cell C4, by typing 16 in cell D4, by
typing 17 in cell A5, by typing 18 in cell B5, by typing 19 in cell C5, by typing 20 in cell D5.
To use the computer spreadsheet to determine the number of rows and the number of columns contained
in this matrix, highlight all of the entries (as was done on the partial screen shot at the right) with a
computer mouse.
While holding down the left button on the mouse, notice that the computer displays the desired
information (as is indicated by the red oval). Therefore, this matrix has 5 rows and 4 columns…making
its order (dimensions): 5 × 4.
162
Tutorial 2.27 Use a computer to determine the transpose of a matrix.

Use a computer to determine the negative of a matrix.
1 2 3 4
5 6 7 8
 
Suppose that we want to determine the transpose of this matrix with a computer:  9 10 11 12 
 
13 14 15 16 
17 18 19 20 
After entering the data onto the computer spreadsheet, highlight another section of the worksheet that
has the dimensions of the transpose of a 5 × 4 matrix…that is (as can be seen in the partial screen
shot below on the left), a 4 × 5 section. (Recall that the transpose of a matrix swaps the given rows for
columns and the given columns for rows. So, if the given matrix as an order of R × C then its transpose
will have an order of C × R.)

While the 4 × 5 section is still highlighted, type this array (matrix) formula (which will appear in the
formula bar): =TRANSPOSE(A1:D5). Since this is an array formula, we will need to do a special key-
stroke combination to enter the desired formula: CRTL+SHIFT+ENTER. (Braces will surround the
formula indicating that it is an array formula.) As we can see from the partial screen shot on the previous
page, the transpose has swapped the data around so that the entries that were originally in rows are in
columns and the entries that were originally in columns are in rows. 1 2 3 4
5 6 7 8
 
Suppose that we want to determine the negative of this matrix with a computer:  9 10 11 12 
 
13 14 15 16 
17 18 19 20 
After entering the data onto the computer spreadsheet, highlight another section of the worksheet that
has the same dimensions as the original 5 × 4 matrix…that is (as can be seen in the partial screen shot
below on the left), a 5 × 4 section.
formula bar): =-1*(A1:D5). Since this is an array (matrix) formula, we will need to do the special
CRTL+SHIFT+ENTER key-stroke combination to enter the desired formula. (Braces will surround the
formula indicating that it is an array formula.) As we can see from the partial screen shot below on the
right, each of the original entries has been changed to its negative (opposite).
164
Tutorial 2.28 Use a computer spreadsheet to add matrices.

Use a computer spreadsheet to subtract matrices.
1 2 3 10 11 12 
Suppose that we want to use a spreadsheet to add these two matrices:  4 5 6  + 13 14 15 
7 8 9  16 17 18 
After entering the data from each matrix onto the computer spreadsheet, highlight another section of the
worksheet that has the same dimensions as the given matrices, for this example (as can be seen in the
partial screen shot on the next page) that is a 3 × 3 section. (Recall that we can only add two matrices
together if they both have the same dimensions.)
formula bar): =(A1:C3)+(E1:G3). Since this is an array (matrix) formula, we will need to do the special
CRTL+SHIFT+ENTER key-stroke combination to enter the desired formula. (Braces will surround
the formula indicating that it is an array formula.) As we can see from the partial screen shot below on
the right, the two entries in respective cells have been added together…thus displaying the sum of the
given matrices.
 -1 2 -3  10 -11 12 
Suppose that we want to use a spreadsheet to subtract these matrices:  4 -5 6  - -13 14 -15 .
-7 8 -9   16 -17 18 
After entering the data from each matrix onto the computer spreadsheet, highlight another section of
the worksheet that has the same dimensions as the given matrices, for this example (as can be seen in
the partial screen shot below on the left) that is a 3 × 3 section. (Recall that we can only subtract two
matrices together if they both have the same dimensions.)
165
formula bar): =(A1:C3) – (E1:G3). Since this is an array (matrix) formula, we will need to do the special
the right, the two entries in respective cells have been subtracted…thus displaying the difference of the
given matrices.

FULL ENGAGEMENT…
RUN FASTER.
1349906_A6_4+0.indd 1 22-08-2014 12:56:57


Tutorial 2.29 Use a spreadsheet to complete a scalar multiplication.

100 200 
Suppose that we want to use a spreadsheet to complete this scalar multiplication: 1.15  
300 400 
Enter just the data from the matrix onto the computer spreadsheet. Highlight another section of the
worksheet that has the same dimensions as the given matrix, for this example (as can be seen in the
partial screen shot below on the left) that that is a 2 × 2 section.
formula bar): =1.15*(A1:B2). Since this is an array (matrix) formula, we will need to do the special
the right, each of the original entries has been multiplied by 1.15 (which is the scalar in this example).
 4 3 8 7 
Suppose that we want to use a spreadsheet to complete this problem: 4   + 3 .
 2 1 6 5 
Enter the data from each of the matrices onto the computer spreadsheet. Highlight another section of
the worksheet that has the same dimensions as the given matrices…for this example (as can be seen in
the partial screen shot below on the left) that is a 2 × 2 section.
formula bar): =4*(Al:B2)+3*(Dl:E2). Since this is an array (matrix) formula, we will need to do the special
the formula indicating that it is an array formula.) As we can see from the partial screen shot above on
the right, the entries from each matrix have been multiplied by their respective scalars and then these
products have been added together.
NOTE: A scalar multiplication combined with a subtraction would be completed in a similar fashion
as described. The main difference would be the array (matrix) formula that would be needed to
accomplish the task.
167
Tutorial 2.30 Use a spreadsheet to complete a matrix multiplication.

1 2 3 4
5 6 7 8  1 2 3
  4 5 6
Suppose that we want to use a spreadsheet to complete this problem:  9 10 11 12  ×  
  7 8 9
13 14 15 16  10 11 12 
17 18 19 20   
Enter the data from each of the given matrices. Highlight another section of the worksheet that has the
dimensions of the product for these matrices…for this example (as can be seen in the partial screen shot
below on the left) that is a 5 × 3 section. (Recall that when multiplying matrices, the number of columns
in the first matrix must be equal to the number of rows in the second matrix and that the product of these
matrices will then have the dimensions defined by the number of rows in the first matrix by the number
of columns in the second matrix: R1 × C2. For this example, the order of the first matrix is 5 × 4 while
the order of the second matrix is 4 × 3…which makes the product of these two arrays a 5 × 3 matrix.)
formula bar): =MMULT(A1:D5, F1:H4). Since this is an array (matrix) formula, we will need to do
the special CRTL+SHIFT+ENTER key-stroke combination to enter the desired formula. (Braces will
surround the formula indicating that it is an array formula.) As we can see from the partial screen shot
above on the right, the cells have been filled with the data produced by multiplying the given matrices.
NOTE: Recall that multiplication of matrices is NOT commutative. So, if we reversed the two matrices,
we would be attempting to multiply a 4 × 3 matrix by a 5 × 4 matrix. Since the two middle
numbers do not match, the multiplication cannot be completed.
168
Tutorial 2.31 Use a spreadsheet to solve systems of equations involving row

operations.
x − 3y + 4z = 10

Suppose that we want to use a spreadsheet to solve: 2 x + 2 y + z = 15 by applying the Gauss-Jordan
3 x − 4 y + 2 z =10

row operations. We would need to enter the numbers from the given problem…creating an augmented
matrix (as can be seen in the partial screen shot).
Recall that the goal of the Gauss-Jordan row operations method is to convert all but the last column
into an N×N identity matrix so that the solutions for the given system will appear in the last column.
For this example, we need a 3 × 3 identity matrix and the solutions will appear in the fourth column.

Recall that the goal of the first step in the Gauss-Jordan process is to get a 1 in the R1C1 position (cell
D2 in the partial screen shot at the right) of the desired identity matrix. Since we already have that step
accomplished, we then need to convert the other entries in C1 (cells D3 and D4) into zeroes:
• Click into cell D6 and type: =D2…and then copy this formula from cells D6 to G6.
• Click into cell D7 and type: =D3-2*D2…and then copy this formula from cells D7 to G7.
• Click into dell D8 and type: =D4–3*D2…and then copy this formula from cells D8 to G8.
We now have the first column of the desired identity matrix completed. The next step is to get a 1 into
the R2C2 position (cell E7 in the partial screen shot above to the right). Since the non-zero entries of the
third row are all multiplies of 5, it would be better to have these entries as the second row rather than
the third. So, we can swap the last two rows around:
• Click into cell D10 and type: =D6…and then copy this formula from D10 to G10.
Now that we have the rows swapped around, we still need to get a 1 in the R2C2 position of the desired
identity matrix. So, we need to divide the entire second row by 5:
• Click into cell D15 and type: =D11/5…and then copy this formula from D15 to G15.
170
We now have to convert the other entries in C2 (cells E14 and E16) into zeroes:
• Click into cell D18 and type: =D14+3*D15…and then copy this formula from D18 to G18.
• Click into cell D19 and type: =D15…and then copy this formula from D19 to G19
• Click into cell D20 and type: =D16–8*D15…and then copy this formula from D20 to G20.
We now have the first and the second columns of the desired identity matrix completed. The next step
is to get a 1 into the R3C3 position of the desired identity matrix. Since there is a 9 in that position (cell
F20 in the partial screen shot on the previous page), we just need to divide the third row by 9:
• Click into cell D24 and type: =D20/9…and then copy this formula from D24 to G24.
We now have to convert the other entries in C3 (cells F22 and F23) into zeroes:
We now have the desired identity matrix completely finished. The only thing to do is now read the
solutions to the given system: x = 4 (based on the entry in cell G26)
y = 2 (based on the entry in cell G27)
z = 3 (based on the entry in cell G28).
NOTE: This process can be duplicated using any sized system. The only difference will be the number
of rows and columns that will be handled based on the size of the system.
171
Tutorial 2.32 Use a spreadsheet to determine the inverse of a matrix.

Use a spreadsheet to find the determinant of a matrix.
1 3 -6 
Suppose we want to use a computer spreadsheet to determine the inverse of:  3 6 -15
 4 0 -16 
Enter the data from the given matrix. Highlight another section of the worksheet that has the same
dimensions as the given matrix…for this example (as can be seen in the partial screen shot below to
the left), that would be a 3 × 3 section.
While this 3 × 3 section is still highlighted, type this array (matrix) formula (which will appear in the
formula bar): =MINVERSE(A1:C3). Since this is an array (matrix) formula, we will need to do the special
formula indicating that it is an array formula.) As we can see from the partial screen shot above on the
right, the cells have been filled with the values of the desired inverse.
1 3 -6 
Suppose we want to use a computer spreadsheet to find the determinant of:  3 6 -15 .
 4 0 -16 
Enter the data from the given matrix. Since the determinant will only be one value, we just need to
decide in what cell we would like the information to be displayed. As can be seen in the partial screen
shot below to the left, the determinant will be displayed in cell E2. Therefore, just click into cell E2
and type: =MDETERM(A1:C3). Although this is an array (matrix) formula, only one value will be
displayed…so, we can just press ENTER rather than the special CRTL+SHIFT+ENTER key-stroke
combination used for other array (matrix) formulas. As can be seen in the partial screen shot below to
the left, the determinant for the given matrix is 12.

NOTE: Recall that if the determinant of any matrix is zero, then the given matrix will not have an inverse.
172
Tutorial 2.33 Use a spreadsheet to solve a system of equations involving inverse

matrices.
Although we could use the Gauss-Jordan row operations to solve a system of equations, it is much easier
to have a computer spreadsheet to all of the work for us by using inverse matrices.
x − 3y + 4z = 10

Suppose that we want to use a computer spreadsheet to solve: 2 x + 2 y + z = 15 .
3 x − 4 y + 2 z =10

First thing we need to do is to enter the coefficients into one matrix and the constants into another (as
can be seen in the partial screen shot below to the left).
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Then, we need to highlight another section of the worksheet that will contain the inverse of the
coefficient matrix. For this example, we would need to highlight a 3 × 3 section (cells G2 to I4 in
the partial screen shot above to the left). While the section is highlighted, type this array (matrix)
formula: =MINVERSE(A2:C4). Since this is an array (matrix) formula, we will need to do the special
formula indicating that it is an array formula.) As can be seen in the partial screen shot above to the
right, cells G2 to I4 now contain the inverse matrix for the coefficient matrix.
Now all we need to do is multiply the inverse matrix (cells G2 to I4) with the constant matrix (cells E2
to E4) to obtain the solutions. Since the inverse is a 3 × 3 matrix and the constants form a 3 × 1 matrix,
the product of these two matrices will be a 3 × 1 matrix. Highlight a 3 × 1 section on the worksheet (cells
K2 to K4 in the partial screen shot to the right above) and type: =MMULT(G2:I4,E2:E4). Remember
we need to do the CRTL+SHIFT+ENTER key-stroke combination to enter the formula. As can be seen
in the partial screen shot to the right (above), cells K2 to K4 now contain the solutions to the given
system:
x = 4 (based on the entry in cell K2)

y = 2 (based on the entry in cell K3)
z = 3 (based on the entry in cell K4).
NOTE: It may be wise to have the computer spreadsheet find the determinant of the coefficient matrix
before proceeding with the steps listed in this tutorial. If the determinant is zero, then there will
be no inverse. If there is no inverse, these steps will not help in finding the desired solutions. If
necessary, we may need to use row operations to determine whether a given system has a general
solution or no solution at all.
174
Quantitative Analysis Quadratic & Other Special Functions
3 Quadratic & Other Special

Functions
Tutorial 3.1 Find the greatest common factor of a polynomial.
First, some vocabulary…
• A monomial is a one-termed expression. Some sample monomials are: 2x, 8a2b, –7, and 12
• A binomial is a two-termed expression joined by an addition or a subtraction sign. Some
sample binomials are: x + y, 8a2b – 4bc2, and 4x + 5
• A trinomial is a three-termed expression joined together by addition or subtraction signs.
Some sample trinomials are: x + y – z, 12a3b + 4ab2 – 8a2b3, and 5x2 + 3y – 7
• A polynomial is a multi-termed expression where the terms are joined together by addition
or subtraction signs. The set of polynomials consist of all monomials, all binomials, all
trinomials as well as any other expressions that might have more than three terms.
Occasionally, we might need to express polynomials in factored form. One way to factor a polynomial
expression is to factor out its greatest common monomial factor. We can use prime factorization to
determine the greatest common factor (GCF) of any set of numbers. All we need to do is determine
what prime factors the given numbers share at most:
example 3.1a Find: GCF(4, 8, 12)

prime factorization: 4 = 22…8 = 23…12 = 22 × 31
shared at most: 22 = 4 → GCF(4, 8, 12) = 4
example 3.1b Find: GCF(10, 40, 60)

prime factorization: 10 = 21 × 51…40 = 23 × 51…60 = 22 × 31 × 51
shared at most: 21 × 51 = 10 → GCF(10, 40, 60) = 10
example 3.1c Find: GCF(10, 15, 25)

prime factorization: 10 = 21 × 51…15 = 31 × 51…25 = 52
shared at most: 51 = 5 → GCF(10, 15, 25) = 5
NOTE: The greatest common factor (GCF) of any set of numbers is the one value that will divide evenly
into all of the given numbers.
175
We can extend the prime factorization idea when variables and exponents are introduced into the mix.
In fact, when variables and exponents are included, they are already in “prime factorization” since the
variable is a base raised to a power (exponent).
example 3.1d Find: GCF(4x4, 8x3, 12x2)

prime factorization: 4x4 = 22 × x4…8x3 = 23 × x3…12x2 = 22 × 3 × x2
shared at most: 22 × x2 → GCF = 4x2
example 3.1e Find: GCF(10x5y3, 40x4y4, 60x3y5)

prime factorization 10x5y3 = 21 × 51 × x5 × y3
40x4y4 = 23 × 51 × x4 × y4
60x3y5 = 22 × 31 × 51 × x3 × y5
shared at most: 21 × 51 × x3 × y3 → GCF = 10x3y3
360°
.
example 3.1f Find: GCF(–10ab, –15a2b3, –25a3b5)
thinking
prime factorization 10ab = –1 × 21 × 51 × a1 × b1
15a2b3 = –1 × 31 × 51 × a2 × b3
25a b = –1 × 5 × a × b5 3 5 2 3
shared at most: –1 × 51 × a1 × b1 → GCF = –5ab
360°
thinking . 360°
thinking .

Discover the truth


example 3.1g Find: GCF(12a2b4, 18a4b6, 30a6b8)

prime factorization 12a2b4 = 22 × 31 × a2 × b4
18a4b6 = 21 × 32 × a4 × b6
30a6b8 = 21 × 31 × 51 × a6 × b8
shared at most: 21 × 31 × a2 × b4 → GCF = 6a2b4
So, when we need to factor any given polynomial, the very first thing that we should determine is whether
the terms within the given polynomial have a greatest common factor.
example 3.1h Factor: 4x4 + 8x3 + 12x2

• as established in example 3.1d, GCF(4x4, 8x3, 12x2) = 4x2
4 3 2
• divide each term by the GCF: 4 x + 8 x + 12 x = x2 + 2x + 3
4 x2 4 x2 4 x2
• write the GCF first & then the quotient from above for the desired result:
factored form: 4x2(x2 + 2x + 3)
example 3.1i Factor: 10x5y3 – 40x4y4 + 60x3y5

• as established in example 3.1e, GCF(10x5y3, 40x4y4, 60x3y5) = 10x3y3
• divide each term by the GCF:
10 x5 y 3 −40 x 4 y 4 60 x3 y 5
+ + = x2 – 4xy + 6y2
10 x3 y 3 10 x3 y 3 10 x3 y 3
factored form: 10x3y3(x2 – 4xy + 6y2)
example 3.1j Factor: –10ab – 15a2b3 – 25a3b5
• as established in example 3.1f, GCF(–10ab, –15a2b3, –25a3b5) = 5ab

−10ab −15a 2b3 −25a 3b5 = 2 + ab2 + 5a2b4

+ +
−5ab −5ab −5ab
factored form: –5ab(2 + ab2 + 5a2b4)
177
example 3.1k Factor: 12a2b4 – 18a4b6 – 30a6b8
• as established in example 3.1g, GCF(12a2b4, 18a4b6, 30a6b8) = 6a2b4

12a 2b 4 −18a 4b 6 −30a 6b8

+ + = 2 – 3a2b2 – 5a4b4
6a 2 b 4 6a 2 b 4 6a 2 b 4
factored form: 6a2b4(2 – 3a2b2 – 5a4b4)
NOTE: If we use the distributive property to multiply the greatest common factor (GCF) by the
polynomial that appears in the parentheses, we will go back to the given polynomial that was
to be factored.


Tutorial 3.2 Factor a polynomial expression by grouping.

Extending the idea of factoring out the greatest common factor (GCF) from a given polynomial, we
can establish another method of factoring…that of “grouping”. Sometimes all of the terms in the given
polynomial to be factored may not have one common factor…but…some of them may. Therefore, we
can “group” the terms into smaller sets and factor out the GCF from them.
example 3.2a Factor by grouping: 5b2 – 20b – a3b + 4a3

• Decide how to group given polynomial: (5b2 – 20b) + (–a3b + 4a3)
• Factor out the GCF from each group: 5b(b – 4) – a3(b – 4)
• Then, factor out the GCF from the two sub-groups: (b – 4)(5b – a3)
example 3.2b Factor by grouping: a3 – a2 – 6a + 6

• Decide how to group given polynomial: (a3 – a2) + (–6a + 6)
• Factor out the GCF from each group: a2(a – 1) – 6(a – 1)
• Then, factor out the GCF from the two sub-groups: (a – 1)(a2 – 6)
example 3.2c Factor by grouping: 10x – 10y + 7bx – 7by

• Decide how to group given polynomial: (10x – 10y) + (7bx – 7by)
• Factor out the GCF from each group: 10(x – y) + 7b(x – y)
• Then, factor out the GCF from the two sub-groups: (x – y)(10 + 7b)
example 3.2d Factor by grouping: 7x3 – 21x2 + 2x – 6

• Decide how to group given polynomial: (7x3 – 21x2) + (2x – 6)
• Factor out the GCF from each group: 7x2(x – 3) + 2(x – 3)
• Then, factor out the GCF from the two sub-groups: (x – 3)(7x2 + 2)
NOTE:
If we use extended distributive property (sometimes called FOIL when multiplying two
binomials) to multiply the first factor by the second, we will go back to the given polynomial
that was to be factored in the first place.
NOTE: Although the examples above paired the given four terms, we are not restricted to that grouping.
It is quite possible that four terms could be grouped into a trio then a single…or, they might be
grouped into a single and then a trio. It all depends on how we think to group the given terms.
However, notice that after the first greatest common factor has been factored out of the “groups”,
there will be a common factor in the parentheses. If this does not happen, then the grouping
was done incorrectly.
179
Tutorial 3.3 Factor a polynomial expression (x2 + bx + c) as a product of binomials.

When we multiply one binomial by another, we do so by applying extended distributive property.
Examining these products will aid us in reversing the process and factoring a trinomial (ax2 + bx + c).
example 3.3a Multiply: (x + 5)(x + 6)

• multiplying: x(x + 6) = x2 + 6x + 30
multipl 5(x + 6) = x2 + 5x + 30
• combining like-terms: x2 + [6x + 5x] + 30 = x2 + 11x + 30
example 3.3b Multiply: (x – 5)(x – 6)

• multiplying: x(x – 6) = x2 – 6x + 30
multiplyin –5(x – 6) = x2 – 5x + 30
• combining like-terms: x2 + [–6x – 5x] + 30 = x2 – 11x + 30
example 3.3c Multiply: (x + 5)(x – 6)

• multiplying: x(x – 6) = x2 – 6x + 30
multiplying: 5(x – 6) = x2 + 5x – 30
• combining like-terms: x2 + [–6x + 5x] + 30 = x2 – 1x – 30
example 3.3d Multiply: (x – 5)(x + 6)

• multiplying: x(x + 6) = x2 + 6x + 30
multiplying: –5(x + 6) = x2 – 5x – 30+ 30
• combining like-terms: x2 + [6x – 5x] + 30 = x2 + 1x – 30
Although we only did four specific problems, we can use them to make some observations that can be
applied to other binomial multiplication:
• When the signs within the factors are the same (whether positive or negative, as is the case
in example 3.3a or example 3.3b), the last term in the trinomial product will be positive.
• When the signs within the factors are different (as is the case in example 3.3c and example
3.3d), the last term in the trinomial product will be negative.
• No matter what signs are used within the factors, the middle term in the trinomial product
will be the sum of the numbers (along with their respective signs) within the binomials
being multiplied:
For 3.3a: Since +5 and +6 appear in the binomials, the middle term is: 5x + 6x = 11x
For 3.3b: Since –5 and –6 appear in the binomials, the middle term is: –5x + –6x = 11x
For 3.3c: Since +5 and –6 appear in the binomials, the middle term is: 5x – 6x = –1x
For 3.3d: Since –5 and +6 appear in the binomials, the middle term is: –5x + 6x = +1x
180
Now to use the observations and product trinomials from above to reverse the process and to factor
each trinomial into its two binomials factors…
example 3.3e Factor: x2 + 11x + 30

To factor this trinomial, we are looking for two factors of +30 that will also add
to be +11. The only correct set of numbers that satisfy these two conditions is:
+5 and +6. Thus, the factors of the given trinomial are: (x + 5)(x + 6)
example 3.3f Factor: x2 – 11x + 30

to be –11. The only correct set of numbers that satisfy these two conditions is:
–5 and –6. Thus, the factors of the given trinomial are: (x – 5)(x – 6)
example 3.3g Factor: x2 – 1x – 30

To factor this trinomial, we are looking for two factors of –30 that will also add
to be –1. The only correct set of numbers that satisfy these two conditions is: +5
and –6. Thus, the factors of the given trinomial are: (x + 5)(x – 6)
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example 3.3h Factor: x2 + 1x – 30

–5 and +6. Thus, the factors of the given trinomial are: (x – 5)(x + 6)
Now to attempt some examples where we don’t already know the factors…
example 3.3i Factor: x2 + 9x + 18

+3 and +6. Thus, the factors of the given trinomial are: (x + 3)(x + 6)
example 3.3j Factor: x2 – 7x + 12

to be –7. The only correct set of numbers that satisfy these two conditions is: –3
and –4. Thus, the factors of the given trinomial are: (x – 3)(x – 4)
example 3.3k Factor: x2 – 2x – 24

to be –2. The only correct set of numbers that satisfy these two conditions is: –6
and +4. Thus, the factors of the given trinomial are: (x – 6)(x + 4)
example 3.3l Factor: x2 + 5x – 36

+9 and –4. Thus, the factors of the given trinomial are: (x + 9)(x – 4)
182
Tutorial 3.4 Factor a polynomial expression (ax2 + bx + c) as a product of

binomials.
We can apply the grouping method of factoring to help us factor most ax2 + bx + c trinomials. Let’s look
back at some previous examples…
example 3.4a Factor: x2 + 9x + 18

Since a = 1 and c = 18 in the given trinomial, we are looking for two numbers
that multiply to be (+1)(+18) = +18 and that also add to be +9. Since the 18
is positive, the two desired numbers will have the same sign…and, since the
9 is also positive, these signs will be positive. Therefore, the desired numbers
are: +3, +6. Regrouping the middle term of the given trinomial: x2 + 9x + 18 =
x2 + 3x + 6x + 18. Using grouping to factor: (x2 + 3x) + (6x + 18) = x(x + 3) +
6(x + 3) = (x + 3)(x + 6)
example 3.4b Factor: x2 – 7x + 12

Since a = 1 and c = 12 in the given trinomial, we are looking for two numbers
that multiply to be (+1)(+12) = +12 and that also add to be –7. Since the 12 is
positive, the two desired numbers will have the same sign…and, since the 7 is
negative, these signs will be negative. Therefore, the desired numbers are: –4,
–3. Regrouping the middle term of the given trinomial: x2 – 7x + 12 = x2 – 4x
– 3x + 12. Using grouping to factor: (x2 – 4x) + (–3x + 12) = x(x – 4) – 3(x – 4)
= (x – 4)(x – 3)
example 3.4c Factor: x2 – 2x – 24

Since a = 1 and c = –24 in the given trinomial, we are looking for two numbers
that multiply to be (+1)(–24) = –24 and that also add to be –2. Since the 24 is
negative, the two desired numbers will have different sign…and, since the 2 is
also negative, the larger absolute value of these numbers will be negative while
the smaller absolute value will be positive. Therefore, the desired numbers
are: –6, +4. Regrouping the middle term of the given trinomial: x2 – 2x – 24 =
x2 – 6x + 4x – 24. Using grouping to factor: (x2 – 6x) + (4x – 24) = x(x – 6) +
4(x – 6) = (x – 6)(x + 4)
183
example 3.4d Factor: x2 + 5x – 36

that multiply to be (+1)(–36) = –36 and that also add to be +5. Since the 36
is negative, the two desired numbers will have different sign…and, since the
5 is positive, the larger absolute value of these numbers will be positive while
the smaller absolute value will be negative. Therefore, the desired numbers are:
+9, –4. Regrouping the middle term of the given trinomial: x2 + 5x – 24 = x2
+ 9x – 4x – 36. Using grouping to factor: (x2 + 9x) + (–4x – 36) = x(x + 9) –
4(x + 9) = (x + 9)(x – 4)
Now, you are probably saying that this method took more time than doing the same factoring examples
in the previous tutorial. Although that may be true, it is because a = 1 in these problems. Let’s look at
some examples where a ≠ 1…

example 3.4e Factor: 12x2 + 13x + 3

Since a = +12 and c = +3 in the given trinomial, we are looking for two numbers
that multiply to be (+12)(+3) = +36 and that also add to be +13. Since the 36
are: +9, +4. Regrouping the middle term of the given trinomial: 12x2 + 13x
+ 3 = 12x2 + 9x + 4x + 3. Using grouping to factor: (12x2 + 9x) + (4x + 3) =
3x(4x + 3) + 1(4x + 3) = (4x + 3)(3x + 1)
example 3.4f Factor: 9x2 – 18x + 8

that multiply to be (+9)(+8) = +72 and that also add to be –18. Since the 72
18 is negative, these signs will be negative. Therefore, the desired numbers are:
–12, –6. Regrouping the middle term of the trinomial: 9x2 – 18x + 8 = 9x2 – 12x
– 6x + 8. Using grouping to factor:
(9x2 – 12x) + (–6x + 8) = 3x(3x – 4) – 2(3x – 4) = (3x – 4)(3x – 2)
example 3.4g Factor: 9x2 – 1x – 10

Since a = +9 and c = –10 in the given trinomial, we are looking for two numbers
that multiply to be (+9)(–10) = –90 and that also add to be –1. Since the 90 is
negative, the two desired numbers will have different signs…and, since the 1 is
also negative, the larger absolute value of these numbers will be negative while
the smaller absolute value will be positive. Therefore, the desired numbers are:
+9, –10. Regrouping the middle term of the given trinomial: 9x2 – 1x – 10 =
9x2 + 9x – 10x – 10. Using grouping to factor:
(9x2 + 9x) + (–10x – 10) = 9x(x + 1) – 10(x + 1) = (x + 1)(9x – 10)
example 3.4h Factor: 8x2 + 29x – 12

Since a = +8 and c = –12 in the given trinomial, we are looking for two numbers
that multiply to be (+8)(–12) = –96 and that also add to be +29. Since the 96 is
negative, the two desired numbers will have different signs…and, since the 29
is positive, the larger absolute value of these numbers will be positive while the
smaller absolute value will be negative. Therefore, the desired numbers are: +32,
–3. Regrouping the middle term of the given trinomial, we get: 8x2 + 29x – 12
= 8x2 + 32x – 3x – 12. Using grouping to factor:
(8x2 + 32x) + (–3x – 12) = 8x(x + 4) – 3(x + 4) = (x + 4)(8x – 3)
185
NOTE: To double check the factors, we can always multiply the binomials together. The proper product
should be the given trinomial before it was factored.
NOTE: When regrouping the middle term of the original trinomial, it makes no difference which of the
two “desired” numbers are place first and which is placed second. The final factors should be the
same. Remember that the commutative property works for the multiplication of polynomials.

Tutorial 3.5 Factor “special” polynomials through patterning.

Mathematicians always look for easier or quicker ways to complete tasks. Thus, some factoring tasks can
be completed through the use of previously established patterns. If we know these patterns, we can just
present the factors without doing too much back-up work.
When we multiply two identical binomial factors, we get a perfect square trinomial:
(a + b)2 = (a + b)(a + b) = a(a) + a(b) + b(a) + b(b) = a2 + 2ab + b2
(a – b)2 = (a – b)(a – b) = a(a) – a(b) – b(a) – b(–b) = a2 – 2ab + b2
When we multiply two binomials such as (a + b)(a – b), we get a difference of squares binomial:
(a + b)(a – b) = a(a) + a(–b) + b(a) + b(–b) = a2 – b2
NOTE: There is no such thing as the sum of squares binomial.
When we multiply three identical binomial factors, we get a perfect cube trinomial:
(a + b)3 = (a + b)(a + b)(a + b)

(a + b) × [(a + b)(a + b)]
(a + b) × [a(a) + a(b) + b(a) + b(b)]
(a + b) × [a2 + 2ab + b2]
a(a2) + a(2ab) + a(b2) + b(a2) + b(2ab) + b(b2)
a3 + 2a2b + ab2 + a2b + 2ab2 + b3
a3 + 3a2b + 3ab2 + b3
(a – b)3 = (a – b)(a – b)(a – b)
(a – b) × [(a – b)(a – b)]
(a – b) × [a(a) + a(–b) – b(a) – b(–b)]
(a – b) × [a2 – 2ab + b2]
a(a2) – a(2ab) + a(b2) – b(a2) – b(–2ab) – b(b2)
a3 – 2a2b + ab2 – a2b + 2ab2 – b3
a3 – 3a2b + 3ab2 – b3
187
Two other special polynomials are displayed below:
sum of cubes: difference of cubes:

a + b = (a + b)(a – ab + b )
3 3 2 2
a – b3 = (a – b)(a2 + ab + b2)
3
NOTE: If the given binomial is a sum of cubes, then the smaller binomial factor will also be a sum and
the middle term of the trinomial factor will be subtracted. However, if the given binomial is a
difference of cubes, then the smaller binomial factor will also be a difference and the middle
term of the trinomial factor will be added.
When we attempt to factor polynomials through patterning, we should follow these guidelines:
1. Factor out the greatest common monomial factor (if one exists).
2. Determine which of the factoring patterns might apply for the given polynomial.
3. Factor the given polynomial using the proper pattern.
example 3.5a Factor: 9x2; – 12x + 4

that multiply to be (+9)(+4) = +36 and that also add to be –12. Since the 36 is
positive, the two desired numbers will have the same sign…and, since the 12
is negative, these signs will be negative. Therefore, the desired numbers are: –6,
–6. Since both of these numbers are identical, the given trinomial is a perfect
square. Thus, we can use a pattern to complete this task…
given polynomial: 9x2 –12x +4 = (a – b)2

perfect square pattern: a2 –2ab + b2 = (a – b)2
Using the pattern: a2 = 9x2 = (3x)2 –2ab = –12x b2 = 4 = (2)2

a = 3x –2(3x)b = –12x b=2
(–6x)b = –12x
b=2
Therefore: 9x2 – 12x + 4 = (3x – 2)2 = (3x – 2)(3x – 2)
188
example 3.5b Factor: 16x2 + 40x + 25

that multiply to be (+16)(+25) = +400 and that also add to be +40. Since the
400 is positive, the two desired numbers will have the same sign…and, since the
are: +20, +20. Since both of these numbers are identical, the given trinomial is
a perfect square. Thus, we can use a pattern to complete this task…
given polynomial: 16x2 +40x + 25 = (a + b)2

perfect square pattern: a2 +2ab + b2 = (a + b)2
Using the pattern: a2 = 16x2 = (4x)2 +2ab = +40x b2 = 25 = (5)2

a = 4x +2(4x)b = +40x b=5
(+8x)b = +40x
b=5
Therefore: 16x2 + 40x + 25 = (4x + 5)2 = (4x + 5)(4x + 5)

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example 3.5c Factor: 4x2 – 9

that multiply to be (+4)(–9) = –36 and that also add to be zero (since b = 0).
Since the 36 is negative, the two desired numbers will have different signs…and,
since b = 0, these two numbers will be opposites of each other. Therefore, the
desired numbers are: ±6. Whenever these conditions exist, we have the difference
of squares and we can use a pattern to complete this task…
given polynomial: 4x2 – 9 = (a + b)(a – b)

difference of squares pattern: a2 – b2 = (a + b)(a – b)
Using the pattern: a2 = 4x2 = (2x)2 b2 = 9 = (3)2
a = 2x b=3
Therefore: 4x2 – 9 = (2x + 3)(2x – 3)
example 3.5d Factor: x3 – 12x2 + 48x – 64

Because this polynomial has four terms, we could attempt to group the terms to
see if that strategy would work. However, we would soon discover that grouping
is not the way to go for this example. Therefore, let’s attempt to see if the given
polynomial fits one of our “special” patterns…
given polynomial: x3 – 12x2 + 48x – 64 = (a – b)3

perfect cube pattern: a3 – 3a2b + 3ab2 – b3 = (a – b)3
Using the pattern: 3a2b = 12x2 +3ab2 = +48x b3 = 64 = (4)3
a3 = x3 3(x2)b = 12x2 +3(x)b2 = +48x b=4
a=x 3b = 12 +3b = +48
2
b=4 b2 = 16
b=4
Therefore: x3 – 12x2 + 48x – 64 = (x – 4)3 = (x – 4)(x – 4)(x – 4)
example 3.5e Factor: 8x3 + 36x2 + 54x + 27

Because this polynomial has four terms, we could attempt to group the terms to
see if that strategy would work. However, we would soon discover that grouping
is not the way to go for this example. Therefore, let’s attempt to see if the given
polynomial fits one of our “special” patterns…
given polynomial: 8x3 + 36x2 + 54x + 27 = (a + b)3

perfect cube pattern: a3 + 3a2b + 3ab2 + b3 = (a + b)3
190
Using the pattern: 3a2b =36 3ab2 = 54x b3 = 27 = (3)3

a3 = 8x3 = (2x)3 3(2x)2b = 36x2 3(2x)b2 = 54x b=3
a = 2x 3(4x )b = 36x
2 2
(6x)b = 54x
2
(12x )b = 36x
2 2
b2 = 9
b=3 b=3
Therefore: 8x3 + 36x2 + 54x + 27 = (2x + 3)3 = (2x + 3)(2x + 3)(2x + 3)
example 3.5f Factor: 64x3 + 27

Although this polynomial has two terms, it is not an example of the difference
of two squares. Therefore, let’s attempt to see if the given polynomial fits one
of our “special” patterns…
given polynomial: 64x3 + 27 = (a + b)(a2 – ab + b2)

sum of cubes pattern: a3 + b3 = (a + b)(a2 – ab + b2)
Using the pattern a3 = 64x3 = (4x)3 → a = 4x → a2 = (4x)2 = 16x2

b3 = 27 = (3)3 → b = 3 → b2 = (3)2 = 9
ab = (4x)(3) = 12x
Therefore: 64x3 + 27 = (4x + 3)(16x2 – 12x + 9)
example 3.5g Factor: 125x3 – 64

Although this polynomial has two terms, it is not an example of the difference
of two squares. Therefore, let’s attempt to see if the given polynomial fits one
of our “special” patterns…
given polynomial: 125x3 – 64 = (a – b)(a2 + ab + b2)

difference of cubes pattern: a3 – b3 = (a – b)(a2 + ab + b2)
Using the pattern a3 = 125x3 = (5x)3 → a = 5x → a2 = (5x)2 = 25x2

b3 = 64 = (4)3 → b = 4 → b2 = (4)2 = 16
ab = (5x)(4) = 20x
Therefore: 125x3 – 64 = (5x – 4)(25x2 + 20x + 16)
191
Tutorial 3.6 Use factoring to complete business applications.

On occasion, various business applications may involve the use of polynomial factoring in order to
complete a desired task…
example 3.6a The revenue (R) from the sale of x units of a product or commodity is found by
multiplying the price by the number of items sold: R = (price)(units). Suppose
that the revenue of a certain product is given by the algebraic expression of:
R = 500x – x2. If x is the number of units sold, what is the expression for the
price of this item?
answer: We need to factor out the greatest common factor from the algebraic
binomial that appears to the right of the equals sign: R = 500x – x2 = x(500 – x).
If x is the number of units sold, then 500 – x represents the price of the item.
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example 3.6b Suppose that the revenue (R) for a boat tour is: R = 1050 – 20x – 0.5x2,
where x is the number of passengers above the minimum of 50. The revenue
expression can be factored into two binomials where one of the binomials
represents the total number of passengers and the other represents the cost
of the boat tour. Express the revenue formula in its factored form.
answer: We first need to factor out the greatest common factor from the algebraic
expression that appears to the right of the equals sign:
R = 1050 – 20x – 0.5x2 = (–0.5)(x2 + 40x – 2100)
We then need to factor the resulting trinomial into its two binomials by obtaining
two numbers that multiply to be –2100 and also add to be +40: 70, –30. Now
we just need to complete the factoring through “grouping”:
x2 + 40x – 2100 = x2 + 70x – 30x – 2100

= (x2 + 70x) + (–30x – 2100)
= x(x + 70) – 30(x + 70)
= (x + 70)(x – 30)
Putting the GCF back into the mix: (–0.5)(x2 + 40x – 2100) = (–0.5)(x + 70)
(x – 30). So, the final binomial factors are: (–0.5x – 35)(x – 30) or (x + 70)
(–0.5x + 15)
example 3.6c The consumer (C) expenditure (in dollars) for a commodity is the product of
its market price (p) and the number of units demanded. Suppose that for a
certain commodity, the consumer expenditure is given by: C = 9600p – 150p2.
Factor this given expression in order to find an expression for the number
of units demanded.
answer: We need to factor out the p from the algebraic binomial that appears
to the right of the equals sign: C = 9600p – 150p2 = p(9600 – 150p). Then, the
p represents the price while the 9600 – 150p represents the number of units
demanded.
193
Tutorial 3.7 Solve quadratic equations by factoring.

Just as we solved linear equations (standard form: Ax + By = C; slope-intercept form: y = mx + b) to
complete some business applications, we may also need to solve quadratic equations (ax2 + bx + c = 0)
to complete other such applications.
One way to solve quadratic equations is through factoring and the application of:
Zero Product Property: The product of any two real numbers will equal zero if either
or both of these numbers is equal to zero. Expressed differently, if (a)(b) = 0, then
a = 0 (alone), b = 0 (alone), or both a and b equal zero.
example 3.7a Solve by factoring: 16x2 – 25 = 0
1. Set the quadratic equation to zero. (This step is already completed.)

2. Factor: 16x2 – 25 → Since this binomial is the difference of squares,
we can use the “special pattern” to complete the factoring:
a2 – b2 = (a + b)(a – b)
16x2 – 25 = (4x)2 – (5)2 = (4x + 5)(4x – 5)
3. Set each factor equal to zero and solve each “mini-equation”:
4x + 5 = 0 → 4x = –5 → x = –5/4 = –1.25
4x – 5 = 0 → 4x = +5 → x = +5/4 = +1.25
4. Determine the solutions for the given quadratic: x = ±5/4 = ± 1.25
example 3.7b Solve by factoring: x2 – 4x = 5x2
1. Set the quadratic equation to zero:

x2 – 4x = 5x2 → 0 = 5x2 – x2 + 4x = 4x2 + 4x
2. Factor: 4x2 + 4x → Factor out the greatest common factor: 4x(x + 1)
4x = 0 → x = 0/4 = 0
x + 1 = 0 → x = –1
4. Determine the solutions for the given quadratic: x = 0, x = –1
194
example 3.7c Solve by factoring: x2 + 12x = 4x – 15
1. Set the quadratic equation to zero:

x2 + 12x = 4x – 15 → x2 + 8x + 15 = 0
2. Factor: x2 + 8x + 15 → We are looking for two numbers that multiply to
be +15 and add to be +8: +3, +5 →
x2 + 8x + 15 = x2 + 3x + 5x + 15 = x(x + 3) + 5(x + 3) = (x + 3)(x + 5)
x + 3 = 0 → x = –3
x + 5 = 0 → x = –5
4. Determine the solutions for the given quadratic: x = –3, x = –5
example 3.7d Solve by factoring: 25x2 + 20x + 4 = 0

1. Set the quadratic equation to zero. (This step is already completed.)
2. Factor: 25x2 + 20x + 4 → We are looking for two numbers that multiply to
be +100 (25 × 4 = 100) and add to be +20: +10, +10. Since these numbers
are identical, the trinomials is a perfect square and we can factor it by
using one of the “special patterns”: a2 + 2ab + b2 = (a + b)2 →
25x2 + 20x + 4 = (5x)2 + 2(5)(2)x + (2)2 = (5x + 2)2


5x + 2 = 0 → 5x = –2 → x = –2/5 = –0.4
NOTE: Since we have a perfect square trinomial, we will have a “double
root” as a solution and only one “mini-equation” needs to be solved.
4. Determine the solution for the given quadratic: x = –2/5 = –0.4
4 x2 7 x
example 3.7e Solve by factoring: + 1
=
15 15
4 x2 7 x 4 x2 7 x
1. Set the quadratic equation to zero: + 1→
= + −1 =0
15 15 15 15
2. Because of the fractions, multiply through by the lowest common

denominator (which is 15 for this example): 4x2 + 7x – 15 = 0
3. Factor: 4x2 + 7x – 15 → We are looking for two numbers that multiply to
be –60 (–15 × 4 = –60) and add to be +7: +12, –5 →
4x2 + 7x – 15 = 4x2 + 12x – 5x – 15 = 4x(x + 3) – 5(x + 3)
= (x + 3)(4x – 5)
x + 3 = 0 → x = –3
5
4x – 5 = 0 → 4x = 5 → x = = 1.25
4
5. Determine the solutions for the given quadratic: x = –3, x = 5/4 = 1.25
example 3.7e Solve by factoring: (x – 1)(2x + 1) = 14

1. Multiply the two binomials: (x – 1)(2x + 1) = 2x2 + x – 2x – 1 = 2x2 – x – 1
2. Set the quadratic equation to zero: 2x2 – x – 1= 14 → 2x2 – x – 15 = 0
3. Factor: 2x2 – x – 15 → We are looking for two numbers that multiply to
be –30
(–15 × 2 = –30) and add to be –1: +5, –6.
2x2 – x – 15 = 2x2 – 6x + 5x – 15 = 2x(x – 3) + 5(x – 3) = (x – 3)(2x + 5)
x–3=0→x=3
−5
2x + 5 = 0 → 2x = –5 → x = = –2.5
2
5. Determine the solutions for the given quadratic: x = 3, x = –5/2 = –2.5
196
Tutorial 3.8 Solve quadratic equations by completing the square.

Another way to solve quadratic equations is through a method called “completing the square” which
follows these steps:
1. Add/Subtract the constant from both sides of the equation.

2. Divide both sides of the equation by the coefficient of the quadratic (x2) term…simplifying
wherever possible.
3. Divide the coefficient of the linear (x) term by two (2) and square the quotient. Add this
result to both sides of the equation…simplifying wherever possible.
4. Factor the trinomial on the left side of the equation into its (a ± b)2 form.
5. Take a square root of each side of the equation.
6. Solve for x…simplifying wherever possible. Normally, there will be two solutions so we will
need to solve two “mini-equations” for x.
example 3.8a Solve by completing the square: x2 – 14x = 72

1. This step has already been accomplished in the given example.
2. No need to complete this step since the coefficient of ax2 is one (1).
3. 14 ÷ 2 = 7 → 72 = 49 → x2 – 14x + 49 = 72 + 49 → x2 – 14x + 49 = 121
4. x2 – 14x + 49 = (x – 7)2
5. (x – 7)2 = 121 → ± 121 = ±11 → x – 7 = ±11
6. Solve each “mini-equation”:
x – 7 = –11 → x = –11 + 7 = –4
x – 7 = +11 → x = +11 + 7 = +18
Therefore, the solutions to this quadratic equation are: x = –4, x = 18
example 3.8b Solve by completing the square: x2 + 16x = –60

3. 16 ÷ 2 = 8 → 82 = 64 → x2 + 16x + 64 = –60 + 64 → x2 + 16x + 64 = 4
4. x2 + 16x + 64 = (x + 8)2
5. (x + 8)2 = 4 → ± 4 = ±2 → x + 8 = ±2
x + 8 = –2 → x = –2 – 8 = –10
x + 8 = +2 → x = +2 – 8 = –6
Therefore, the solutions to this quadratic equation are: x = –10, x = –6
197
example 3.8c Solve by completing the square: x2 + 16x = –60

2
9 9 81 81 81 81 1
3. 9 ÷ 2 = →   = → x2 – 9x + = –20 + → x2 – 9x + =
2 2 4 4 4 4 4
2
81  9
4. x2 – 9x + = x − 
4  2
2
9 1
5.  x −  = 1 → ± = ± 1 → x – 9 = ± 1 → x – 4.5 = ± 0.5
 2 4 4 2 2 2

x – 4.5 = –0.5 → x = –0.5 + 4.5 = 4
x – 4.5 = +0.5 → x = +0.5 + 4.5 = 5
Therefore, the solutions to this quadratic equation are: x = 4, x = 5
example 3.8d Solve by completing the square: 2x2 + 5x – 3 = 0

1. 2x2 + 5x – 3 = 0 → 2x2 + 5x – 3 + 3 = 0 + 3 → 2x2 + 5x = 3
2. Divide by 2: 2 x + 5 x + = 3 → simplify: x 2 + 5 x + = 3
2
2 2 2 2 2
2
5 1 5 5 5 x 25 3 25 24 + 25 49
3. 5 ÷ 2 = × = →   = 25 → x 2 + + = + = =
2 2 2 4  4  16 2 16 2 16 16 16

• 3

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2
5 x 25 49 5 x 25  5
4. x 2 + + = → x2 + + = x + 
2 16 16 2 16  4
2
49 49 = ± 7 → x + 5 = ± 7 → x + 1.25 = ± 1.75
5.  x + 5  = →±
  16 16 4 4 4
 4

x + 1.25 = –1.75 → x = –1.75 – 1.25 = –3
x + 1.25 = +1.75 → x = +1.75 – 1.25 = 0.5
Therefore, the solutions to this quadratic equation are: x = –3, x = 0.5
example 3.8e Solve by completing the square: 4x2 – 23x – 35 = 0

1. 4x2 – 23x – 35 = 0 → 4x2 – 23x – 35 + 35 = 0 + 35 → 4x2 – 23x = 35
2
23 x 35
2. Divide by 4: 4 x − 23 x + = 35 → simplify: x 2 − + =
4 4 4 4 4
2
−23 1 −23 529
3.
−23
÷2= × = →  −23  = →
4 4 2 8  8  64
23 x 529 35 529 560 + 529 1089
x2 − + = + = =
4 64 4 64 64 64
2
23 x 529 1089 2 23 x 529  23 
4. x −2
+ = → x − + = x − 
4 64 64 4 64  8 
2
1089
5.  x − 23  = → take the square root of each side →
 8  64
23  = x − 23 → ± 1089 = ± 33 = 4.125 → x –2.875 = ± 4.125

2

x −  8 64 8
 8 

x – 2.875 = –4.125 → x = –4.125 + 2.875 = –1.25
x – 2.875 = +4.125→ x = +4.125 + 2.875 = +7
Therefore, the solutions to this quadratic equation are: x = –1.25, x = 7
199
Tutorial 3.9 Derive the quadratic formula by completing the square.

The “completing the square” method can be used to obtain a formula that will solve most quadratic
equations by following these steps:
1. given general form for any quadratic equation: ax2 + bx + c = 0

2. Subtract the constant from both sides of the equation: ax2 + bx + c = –c
2
3. Divide both sides of the equation by the coefficient of the quadratic term: ax + bx + =
−c
4. Simplify: ax = x 2 → x 2 + bx +
2
−c a a a
=
a a a
2
1 b
5. Complete the square by adding  ×  to both sides:
2 a
2 2
bx  1 b  −c  1 b 
x2 + + ×  = + × 
a 2 a a 2 a
2
1 b b2 2 bx b 2 −c b 2
6. Simplify:  ×  = → x + + = +
2 a 4a 2 a 4a 2 a 4a 2
−c b 2 b 2 − 4ac bx b 2 b 2 − 4ac
7. Simplify: + 2 =2 → x2 + + 2 = 2
a 4a 4a a 4a 4a
2
 b  b 2 − 4ac
8. Factor the trinomial on the left side of the equation:  x +  =2
 2a  4a
b b 2 − 4ac
9. Take a square root of each side of the equation: x + =
±
2a 4a 2
−b b 2 − 4ac
x
10. Solve for x: = ±
2a 4a 2
b 2 − 4ac b 2 − 4ac −b b 2 − 4ac
11. Simplify: = → x
= ±
4a 2 2a 2a 2a
2
12. Quadratic Formula: x = −b ± b − 4ac
2a
− b ± b 2 − 4ac
Quadratic Formula: If ax2 + bx + c = 0 (where a ≠ 0), then x =
2a
200
Tutorial 3.10 Solve quadratic equations using the quadratic formula.

Another way to solve quadratic equations is through the use of the quadratic formula which follows
these steps:
1. Set the given quadratic equation to zero.

2. Identify the values for a, b and c: ax2 + bx + c = 0
−b ± b 2 − 4ac
3. Substitute the values for a, b and c into the quadratic formula: x =
2a
4. Simplify the numeric expression.
5. Branch off the two numeric expressions evaluating each of them separately. These results
will be the desired solutions.
example 3.10a Solve by using the quadratic formula: x2 – 14x = 72
1. x2 – 14x = 72 → x2 – 14x – 72 = 0
2. a = 1, b = –14, c = –72
−b ± b 2 − 4ac −(−14) ± (−14) 2 − 4(1)(−72)
=3. x =
2a 2(1)
−(−14) ± (−14) 2 − 4(1)(−72) 14 ± 196 + 288 14 ± 484 14 ± 22

4. x
= = = =
2(1) 2 2 2
> Apply now

AxA globAl grAduAte
progrAm 2015
- © Photononstop


14 − 22 −8 14 + 22 36
5. x = = = −4 …= x = = 18
2 2 2 2
6. herefore, the solutions toll this quadratic equation are: x = –4, x = 18
example 3.10b Solve by using the quadratic formula: x2 + 16x = –60

1. x2 + 16x = –60 → x2 + 16x + 60 = 0
2. a = 1, b = 16, c = 60
b ± b 2 − 4ac −(16) ± (16) 2 − 4(1)(60)

3. x −=
=
2a 2(1)
−(16) ± (16) 2 − 4(1)(60) −16 ± 256 − 240 −16 ± 16 −16 ± 4

4. x
= = = =
2(1) 2 2 2
−16 − 4 −20 −16 + 4 −12

5. x = = = −10 … x = = = −6
2 2 2 2
6. Therefore, the solutions to this quadratic equation are: x = –10, x = –6
example 3.10c Solve by using the quadratic formula: 2x2 + 5x = 3

1. 2x2 + 5x = 3 → 2x2 + 5x – 3 = 0
2. a = 2, b = 5, c = –3
b ± b 2 − 4ac −(5) ± (5) 2 − 4(2)(−3)

3. x −=
=
2a 2(2)
−(5) ± (5) 2 − 4(2)(−3) −5 ± 25 + 24 −5 ± 49 −5 ± 7

4. x
= = = =
2(2) 4 4 4
−5 + 7 2 1
5. x = −5 − 7 = −12 = −3 … x= = = = 0.5
4 4 4 4 2
6. Therefore, the solutions to this quadratic equation are: x = –3, x = 0.5
202
example 3.10d Solve by using the quadratic formula: 3x2 + 4 = 8x

1. 3x2 + 4 = 8x → 3x2 – 8x + 4 = 0
2. a = 3, b = –8, c = 4
b ± b 2 − 4ac −(−8) ± (−8) 2 − 4(3)(4)

3. x −=
=
2a 2(3)
−(−8) ± (−8) 2 − 4(3)(4) 8 ± 64 − 48 8 ± 16 8 ± 4

4. x
= = = =
2(3) 6 6 6
…
5. x= 8 − 4= 4= 2 =x
8 + 4 12
= = 2
6 6 3 6 6
6. Therefore, the solutions to this quadratic equation are: x = 2/3, x = 2

Tutorial 3.11 Determine the number and the nature of the solutions for a quadratic
equation.
Occasionally, it will be useful to know the number and the nature of the solutions for a given quadratic
equation. This information can be derived from part of the quadratic formula…specifically, the
discriminant: b2 – 4ac (the part of the formula that appears beneath the square root sign:
Given ax2 + bx + c = 0 (where a ≠ 0),

• If b2 – 4ac > 0, the equation has 2 distinct real solutions.
• If b2 – 4ac = 0, the equation has exactly 1 real solution.
• If b2 – 4ac < 0, the equation has no real solutions.
example 3.11a Determine the number and nature of the solutions of: 3x2 + 4 = 8x
1. Set the given quadratic equation to zero: 3x2 – 8x + 4 = 0

2. Identify the values of a, b and c: a = 3, b = –8, c = 4
3. Substitute the values for a, b and c into the discriminant and evaluate the
numeric expression: b2 – 4ac = (–8)2 – 4(3)(4) = 64 – 48 = 16
4. Use the value of the discriminant to determine the number and nature
of the solutions for the given equation: b2 – 4ac = 16 → 16 > 0 → this
equation will have 2 distinct real solutions. NOTE: Look back at example
3.10d, the actually solutions are: x = 2/3, x = 2.
example 3.11b Determine the number and nature of the solutions of: 4x2 + 25 = 20x
1. Set the given quadratic equation to zero: 4x2 – 20x + 25 = 0

numeric expression: b2 – 4ac = (–20)2 – 4(4)(25) = 400 – 400 = 0
4. Use the value of the discriminant to determine the number and nature of
the solutions for the given equation: b2 – 4ac = 0 → 0 = 0 → this equation
will have 1 distinct real solution. NOTE: Solving this quadratic equation
by factoring, we can see that the quadratic trinomial is a perfect square
which can be factored in identical binomials: 4x2 – 20x + 25 = (2x – 5)2…
which will have one double root solution of 5/2 (or 2.5).
example 3.11c Determine the number and nature of the solutions of: x2 + 12 = 5x
1. Set the given quadratic equation to zero: x2 – 5x + 12 = 0

204
numeric expression: b2 – 4ac = (–5)2 – 4(1)(12) = 25 – 48 = –13
of the solutions for the given equation: b2 – 4ac = –13 → –13 < 0 → this
equation will have no real solutions.
There will be times when the discriminant is a perfect square…and, thus the solutions will be rational
numbers – meaning that the solutions can be expressed as fractions, decimals, or integers. However, there
will also be times when the discriminant is a not perfect square…and, these solutions will be irrational
numbers – meaning that the solutions can be expressed using a square root (radical) sign or will have
to be rounded to a situation-appropriate place value.
example 3.11d Determine the number/nature of the solutions and then solve: 2x2 – 15 = x
1. Set the given quadratic equation to zero: 2x2 – x – 15 = 0

2. Identify the values of a, b and c: a = 2, b = –1, c = –15
numeric expression: b2 – 4ac = (–1)2 – 4(2)(–15) = 1 + 120 = 121
equation will have 2 distinct real solutions.
5. Use the quadratic formula to solve:
−b ± b 2 − 4ac −(−1) ± (−1) 2 − 4(2)(−15) 1 ± 1 + 120 1 ± 121 1 ± 11

=x = = = =
2a 2(2) 4 4 4
1 − 11 −10 −5 1 + 11 12
x= = = = −2.5 …=
x = = 3 → x = –2.5, x = 3
4 4 2 4 4
NOTE: Since the discriminant for this equation was a perfect square
(112 = 121), these solutions are rational numbers because they can be expressed
as fractions, decimals or integers.
example 3.11e Determine the number/nature of the solutions and then solve: 3x2 – 6 = 15x
1. Set the given quadratic equation to zero: 3x2 – 15x – 6 = 0

2. Identify the values of a, b and c: a = 3, b = –15, c = –6
numeric expression: b2 – 4ac = (–15)2 – 4(3)(–6) = 225 + 72 = 297
205
equation will have 2 distinct real solutions.
5. Use the quadratic formula to solve:
−b ± b 2 − 4ac −(−15) ± (−15) 2 − 4(3)(−6) 15 ± 225 + 72 15 ± 297

=x = = =
2a 2(3) 6 6
15 ± 297 → 15 − 297 … x = 15 + 297

x= x=
6 6 6
NOTE: Since the discriminant for this equation was not a perfect square, these
solutions are irrational numbers because they cannot be expressed as fractions,
decimals or integers.
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Tutorial 3.12 Solve business applications involving quadratic functions.

There may be times when solving a quadratic equation will be needed to solve real-world business
applications. In most of these cases, using the quadratic formula will be the way to go…the only other
decision will be whether to use “paper & pencil” or a spreadsheet to complete the computation.
example 3.12a Suppose the profit from the sale of x units of a product is: P = 90x – 200 – x2
What level(s) of production will yield a profit of $1600?
“paper & pencil” solution:

1. Replace P with its given value (P = 1600): 1600 = 90x – 200 – x2
2. Set the equation to zero: 0 = 90x – 200 – 1600 – x2 = –x2 + 90x – 1800
3. Identify the values of a, b and c: a = –1, b = 90, c = –1800
4. Use the quadratic formula to determine the solutions:
−(90) ± (90) 2 − 4(−1)(−1800) −90 ± 8100 − 7200 −90 ± 900 −90 ± 30

=x = = =
2(−1) −2 −2 −2
−90 ± 30 −90 − 30 −120 −90 + 30 −60
x= →
= x = = 60 … =x = = 30
−2 −2 −2 −2 −2
Based on these solutions, there will be two levels that will yield a profit of $1600, when x = 30
units or when x = 60 units.
spreadsheet solution:
1. Replace P with its given value (P = 1600): 1600 = 90x – 200 – x2

2. Set the equation to zero: 0 = 90x – 200 – 1600 – x2 = –x2 + 90x – 1800
3. Identify the values of a, b and c: a = –1, b = 90, c = –1800
4. Use a spreadsheet to aid in the calculation of the quadratic formula:
a) Enter the values for a, b and c onto to spreadsheet.

(These values have been entered into cells B2, C2 and D2 in the partial screen-shot.)
207
b) Determine the value of the discriminant by typing: =C2^2–4*B2*D2.

(This formula was entered into cell B4 in the partial screen-shot.)
c) Determine the value of the first solution by typing: =(–1*C2+SQRT(B4))/(2*B2).
d) Determine the value of the second solution by typing: =(–1*C2–SQRT(B4))/(2*B2).
The only difference between arriving at these solutions is that the spreadsheet can be saved to be used
for another problem while the “paper & pencil” method must be repeated.
example 3.12b Suppose the profit from the sale of x units of a product is: P = 16x – 100 – 0.1x2
What level(s) of production will yield a profit of $500?
“paper & pencil” solution:
1. Replace P with its given value (P = 500): 500 = 16x – 100 – 0.1x2
2. Set the equation to zero: 0 = 16x – 100 – 500 – 0.1x2 = –0.1x2 + 16x – 600
3. Identify the values of a, b and c: a = –0.1, b = 16, c = –600
4. Use the quadratic formula to determine the solutions:
−(16) ± (16) 2 − 4(−0.1)(−600) −16 ± 256 − 240 −16 ± 16 −16 ± 4

=x = = =
2(−0.1) −0.2 −0.2 −0.2
−16 ± 4 −16 − 4 −20 −16 + 4 −12
x= →
= x = = 100 … = x = = 60
−0.2 −0.2 −0.2 −0.2 −0.2
Based on these solutions, there will be two levels that will yield a profit of $500, when x = 60
units or when x = 100 units.
spreadsheet solution:
1. Replace P with its given value (P = 500): 500 = 16x – 100 – 0.1x2
2. Set the equation to zero: 0 = 16x – 100 – 500 – 0.1x2 = –0.1x2 + 16x – 600
3. Identify the values of a, b and c: a = –0.1, b = 16, c = –600
4. Use a spreadsheet to aid in the calculation of the quadratic formula:
208
a) Enter the values for a, b and c onto to spreadsheet.

(These values have been entered into cells B2, C2 and D2 in the partial screen-shot.)
b) Determine the value of the discriminant by typing: =C2^2–4*B2*D2.
c) Determine the value of the first solution by typing: =(–1*C2+SQRT(B4))/(2*B2).
d) Determine the value of the second solution by typing: =(–1*C2–SQRT(B4))/(2*B2).
NOTE: The appearance of the spreadsheet does not have to appear as it is shown for these examples.
We can condense the appearance so that the information does not take up so much room.



Tutorial 3.13 For any quadratic function:

a) Determine whether its graph opens up or down.
b) Determine whether its vertex is a minimum or maximum point.
c) Determine its zeroes (horizontal intercepts).
d) Define its axis of symmetry.
e) Determine the coordinates of its vertex.
f) Sketch its graph.
The graph of any quadratic function will be a parabola – a U-shaped curved that can open up or down –
depending on the value of the coefficient (a) of the quadratic (ax2) term:
If a > 0, the parabola will open upward. If a < 0, the parabola will open downward.

y = x2 – 8x + 12 → a = +1 y = –1x2 + 10x – 16 → a = –1
The point at which the curve changes direction is called the vertex of the parabola. This vertex will either
be the optimal minimum point or the optimal maximum point of the quadratic function – depending
on the value of the coefficient (a) of the quadratic (ax2) term:
If a > 0, the vertex will be a minimum point. If a < 0, the vertex will be a maximum point.

y = x2 – 8x + 12 → a = +1 y = –1x2 + 10x – 16 → a = –1
vertex = blue point = (4, –4) vertex = blue point = (5, 9)
Another way to determine whether the vertex is the optimal minimum point or the optimal maximum
point is to determine whether the parabola will open upward or downward:
• If the parabola opens upward, then the vertex will be the optimal minimum point.
• If the parabola opens downward, then the vertex will be the optimal maximum point.
210
The parabola for any given quadratic function will be symmetrical to its axis of symmetry which is a
vertical line that runs through the vertex. Other than the vertex, all of the other points on the parabola
will be equidistant from its axis of symmetry.

y = x2 – 8x + 12 y = –1x2 + 10x – 16
axis of symmetry (green line): x = 4 axis of symmetry (green line): x = 5
The point at which the parabola crosses the y-axis is the y-intercept. The points at which the parabola
crosses the x-axis are the x-intercepts or the zeroes of the parabola.

y = x2 – 8x + 12 y = –1x2 + 10x – 16
y-intercept = (0, y): (0, 12) y-intercept = (0, y): (0, –16)
zeroes = (x, 0): (2, 0) & (6, 0) zeroes = (x, 0): (2, 0) & (8, 0)
For each of the parabolas displayed above, notice that:
• The zeroes are equidistant (the same distance) from the axis of symmetry. For y = x2 – 8x +
12 (on the left), the distance between (2, 0) and (6, 0) is 4 units…with the axis of symmetry
2 units from each of these points. For y = –1x2 + 10x – 16 (on the right), the distance
between (2, 0) and (8, 0) is 6 units…with the axis of symmetry 3 units from each of these
points.
211
• The y-intercept has a “partner point” that is the same distance from the axis of symmetry
as it is. For y = x2 – 8x + 12 (on the left), point (0, 12) is 4 units to the left of the axis of
symmetry. Therefore, there is a “partner point” that is 4 units to the right of the axis of
symmetry…namely, (8, 12). For y = –1x2 + 10x – 16 (on the right), point (0, –16) is 5 units
to the left of the axis of symmetry. Therefore, there is a “partner point” that is 5 units to the
right of the axis of symmetry…namely, (10, –16).
The zeroes of the parabola are nothing more than the solutions for the equation that was used to produce
the parabola. Therefore, all we need to do is solve the given quadratic equation to determine the zeroes
for the given function. Using the quadratic formula, we can determine a general formula to find the
axis of symmetry of any given quadratic function. We can also use the quadratic formula to determine a
general formula to find the vertex of any given quadratic function. Since the axis of symmetry “divides”
the parabola into two equal parts, the zeroes of the parabola are equidistant from each other…with the
axis of symmetry running between these points. Therefore, the x-value for the axis of symmetry is the
average between the x-values of the zeroes.
By completing just two steps, we can generate a general formula to determine the axis of symmetry and
vertex for any parabola:

− b + b 2 − 4ac − b − b 2 − 4ac
Suppose that the two solutions are: x1 = and x2 = …
2a 2a
1. Find the average of these “solutions” by adding the two “values” together and then dividing
the result by two:
 −b + b 2 − 4ac   −b − b 2 − 4ac 
 + 
x1 + x2  2a  
  2a  −2b

= = ÷2
2 2 2a
2. Using division of fractions, simplify the expression:

−2b −2b 1 −2b −b
÷ 2= × = =
2a 2a 2 4a 2a
Based on this algebraic manipulation, we can use the a-value and the b-value from any quadratic function
to determine that:
−b
• The axis of symmetry for any quadratic function will be defined by: x = .
2a
 −b  −b  
• The vertex for any quadratic function will be defined by: vertex (h, k) =  , F   
 2a  2a  
which instructs us to substitute the x-value derived for the axis of symmetry back into the given
quadratic function to determine the y-value for the coordinates of the vertex.
example 3.13a Consider the graph of this quadratic function: y = 6 – 4x – 2x2

a) Determine whether its graph will open upward or downward.
b) Determine the coordinates of its vertex.
c) Determine whether this vertex is an optimal minimum or maximum
point.
d) Define the axis of symmetry for the graph of the given function.
e) Determine the zeroes of the given function.
f) Determine the y-intercept of the given function.
g) Determine the coordinates of the “partner point” for this y-intercept.
h) Sketch the parabola for the given function.
answers:
a) y = –2x2 – 4x + 6 → a = –2 → parabola will open downward
−b −(−4) 4
b) a = –2, b = –4 → h=
= = = –1 →
2a 2(−2) −4
k = 6 – 4x – 2x2 = 6 – 4(–1) – 2(–1)2 = 6 + 4 – 2 = 8 → vertex (h, k) = (–1, 8)

213
c) a = –2 → parabola opens downward → vertex = maximum point
-b −(−4) 4
d) a = –2, b = –4 → h=
= = = –1 → axis of symmetry: x = –1
2a 2(−2) −4
e) a = –2, b = –4, c = 6 → using the quadratic formula to solve…
−b ± b 2 − 4ac −(−4) ± (−4) 2 − 4(−2)(6) 4 ± 16 + 48 4 ± 64 4 ± 8

=x = = = =
2a 2(−2) −4 −4 −4
4±8 4 − 8 −4 4 + 8 12
x= → x1 = = = −1 … x2 = = = −3 → zeroes: (–1, 0) & (–3, 0)
−4 −4 4 −4 −4
f) The y-intercept is when x = 0…therefore: y = 6 – 4(0) – 2(0)2 = 6 → (0, 6)

g) Since the y-intercept (0, 6) if one (1) unit to the right of the axis of symmetry, its “partner
point” will be one (1) unit to the left of the axis of symmetry. Therefore the coordinates of
the desired “partner point” is: (–2, 6)
h) Using all of the derived information from parts A-G:
• Plot the vertex: (–1, 8)

• Plot the zeroes: (–3, 0), (1, 0)

• Plot the y-intercept: (0, 6)

• Plot the “partner point”: (–2, 6)

• Draw in the axis of symmetry: x = –1

• Sketch a downward parabola curve that

passes through all of the mentioned points.

example 3.13b Consider the graph of this quadratic function: y = x2 – 2x – 8

a) Determine whether its graph will open upward or downward.
b) Determine the coordinates of its vertex.
c) Determine whether this vertex is an optimal minimum or maximum
point.
d) Define the axis of symmetry for the graph of the given function.
e) Determine the zeroes of the given function.
f) Determine the y-intercept of the given function.
g) Determine the coordinates of the “partner point” for this y-intercept.
h) Sketch the parabola for the given function.
214
answers:
a) y = x2 – 2x – 8 → a = +1 → parabola will open upward
−b −(−2) 2
b) a = 1, b = –2 → h=
= = =1→
2a 2(1) 2
k = x2 + 2x – 8 = (1)2 – 2(1) – 8 = 1 – 2 – 8 = –9 → vertex (h, k) = (1, –9)

c) a = +1 → parabola opens upward → vertex = minimum point
−b −(−2) 2
d) a = 1, b = –2 → h=
= = = 1 → axis of symmetry: x = 1
2a 2(1) 2
e) a = 1, b = –2, c = –8 → using the quadratic formula to solve…
−b ± b 2 − 4ac −(−2) ± (−2) 2 − 4(1)(−8) 2 ± 4 + 32 2 ± 36 2 ± 6

=x = = = =
2a 2(1) 2 2 2
2±6 2 − 6 −4 2+6 8
x= → x1 = = = −2 … x2= = = 4 → zeroes: (–2, 0) & (4, 0)
2 2 2 2 2
f) The y-intercept is when x = 0…therefore: y = (0)2 – 2(0) – 8 = –8 → (0, –8)

g) Since the y-intercept (0, –8) if one (1) unit to the left of the axis of symmetry, its “partner
point” will be one (1) unit to the right of the axis of symmetry. Therefore the coordinates of
the desired “partner point” is: (2, –8)
h) Using all of the derived information from parts A-G:
• Plot the vertex: (1, –9)

• Plot the zeroes: (4, 0), (–2, 0)

• Plot the y-intercept: (0, –8)

• Plot the “partner point”: (2, –8)

• Draw in the axis of symmetry: x = 1

• Sketch an upward parabola curve that passes

through all of the mentioned points.

215
Tutorial 3.14 Use quadratic functions to find market equilibrium.

Market equilibrium is when the supply function equals the demand function: S(x) = D(x). Recall that
when we first worked with this concept, we completed a system of equations. We will do the same thing
even though we may be working with one or two quadratic functions.
example 3.14a The supply function for a commodity is: S(x) = x2 + 600
The demand function for this same commodity is: D(x) = 3000 – 20x
a) Use this graph to find the point of market equilibrium for this
commodity.
b) Use algebraic means to find the point of market equilibrium.

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answers:
a) Market equilibrium occurs when S(x) = D(x). As displayed in the graph provided, this
occurs at point (40, 2200)…which means when 40 units of the commodity are sold at $2200
per unit.
b) S(x) = D(x) → x2 + 600 = 3000 – 20x
• Set the equation to zero: x2 + 20x – 2400 = 0
• Identify the values of a, b and c: a = 1, b = 20, c = –2400
• Use the quadratic formula to solve:
−(20) ± (20) 2 − 4(1)(−2400) −20 ± 400 + 9600 −20 ± 10,000 −20 ± 100
=x = = =
2(1) 2 2 2
−20 ± 100 −20 − 100 −120 −20 + 100 80

x= → x1 = = = −60 … x=
2 = = 40
2 2 2 2 2
NOTE: Since this is a business application, negatives cannot be used. Therefore, the –60 is an extraneous
solution and must be thrown out. That means that +40 is the only possible value for x
• Using x = 40, evaluate S(x) or D(x):

S(x) = x2 + 600 = (40)2 + 600 = 1600 + 600 = 2200
D(x) = 3000 – 20x = 3000 – 20(40) = 3000 – 800 = 2200
• Use the derived values to determine the point of market equilibrium: (40, 2200)
example 3.14b The supply function for a commodity is: S(x) = x2 + 8x + 20

The demand function for this same commodity is: D(x) = 100 – 4x – x2
a) Use this graph to find the point of market equilibrium for this
commodity.
217
b) Use algebraic means to find the point of market equilibrium.
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answers:
a) Market equilibrium occurs when S(x) = D(x). As displayed in the graph provided, this
occurs at point (4, 68)…which means when 4 units of the commodity are sold at $68 per
unit.
b) S(x) = D(x) → x2 + 8x + 20 = 100 – 4x – x2
• Set the equation to zero: 2x2 + 12x – 80 = 0
−(12) ± (12) 2 − 4(2)(−80) −12 ± 144 + 640 −12 ± 784 −12 ± 28

=x = = =
2(2) 4 4 4
−12 ± 28 −12 − 28 −40 −12 + 28 16

x= → x1 = = = −10 … x=
2 = = 4
4 4 4 4 4
NOTE: Since this is a business application, negatives cannot be used. Therefore, the –10 is an
extraneous solution and must be thrown out. That means that +4 is the only possible
value for x.

S(x) = x2 + 8x + 20 = (4)2 + 8(4) + 20 = 16 + 32 + 20 = 68
D(x) = 100 – 4x – x2 = 100 – 4(4) – (4)2 = 100 – 16 – 16 = 68
• Use the derived values to determine the point of market equilibrium: (4, 68)
example 3.14c Use algebraic means to find the point of market equilibrium:
The supply function for a commodity is: S(x) = x2 + 8x + 16
The demand function for this same commodity is: D(x) = 436 + 6x – 3x2
218
answer: S(x) = D(x) → x2 + 8x + 16 = 436 + 6x – 3x2

• Set the equation to zero: 4x2 + 2x – 420 = 0
−(2) ± (2) 2 − 4(4)(−420) −2 ± 4 + 6720 −2 ± 6724 −2 ± 82

=x = = =
2(4) 8 8 8
−2 ± 82 −2 − 82 −84 −21 −2 + 82 80
x= → x1 = = = = −10.5 … x=
2 = = 10
8 8 8 2 8 8
NOTE: Since this is a business application, negatives cannot be used. Therefore, the –10.5 is an
extraneous solution and must be thrown out. That means that 10 is the only possible
value for x.

S(x) = x2 + 8x + 16 = (10)2 + 8(10) + 16 = 100 + 80 + 16 = 196
D(x) = 436 + 6x – 3x2 = 436 + 6(10) – 3(10)2 = 436 + 60 – 300 = 196
• Therefore, the point of market equilibrium occurs at (10, 196)…which means that 10 units
of the commodity are sold at $196 per unit.

FULL ENGAGEMENT…
RUN FASTER.
1349906_A6_4+0.indd 1 22-08-2014 12:56:57


Tutorial 3.15 Use quadratic functions to find break-even point(s).

The break-even points occur when the cost function equals the revenue function: C(x) = R(x). Recall
that when we first worked with this concept, we completed a system of equations. We will do the same
thing even though we may be working with one or two quadratic functions.
example 3.15a The total cost per week of producing a certain product is: C(x) = 600 + 80x
The total revenue per week for this same product is: R(x) = 150x – x2
a) Use this graph to find the break-even points for this commodity.
b) Use algebraic means to find the break-even points for this
commodity.
c) Write the profit function for this commodity.
d) What are the zeroes of this profit function?
e) Compare the zeroes of the profit function with the break-even
points (established in parts A-B) for this commodity.
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answers:
a) The break-even points occur when: C(x) = R(x). As displayed by the graph provided, there
are two break-even points: (10, 1400) and (60, 5400). NOTE: The area between these two
points is where any possible profits will occur.
b) C(x) = R(x) → 600 + 80x = 150x – x2
• Set the equation to zero: x2 – 70x + 600 = 0
• Identify the values of a, b and c: a = 1, b = –70, c = 600
−(−70) ± (−70) 2 − 4(1)(600) 70 ± 4900 − 2400 70 ± 2500 70 ± 50

=x = = =
2(1) 2 2 2
70 ± 50 70 − 50 20 70 + 50 120
x= x1
= = = 10 =x2 = = 60
2 → 2 2 … 2 2
• Since both x-values are positive, this application has two break-even points:
Using x = 10, → C(x) = 600 + 80x = 600 + 80(10) = 600 + 800 = 1400 → (10, 1400)
Using x = 10, → R(x) = 150x – x2 = 150(10) – (10)2 = 1500 – 100 = 1400 → (10, 1400)
Using x = 60, → C(x) = 600 + 80x = 600 + 80(60) = 600 + 4800 = 5400 → (60, 5400)
Using x = 60, → R(x) = 150x – x2 = 150(60) – (60)2 = 9000 – 3600 = 5400 → (60, 5400)
Therefore, there are two break-even points for this commodity: (10, 1400) and (60, 5400)
c) P(x) = R(x) – C(x) → P(x) = 150x – x2 – (600 + 80x) = 150x – x2 – 600 – 80x = 70x – x2 – 600
d) P(x) = 70x – x2 – 600 →
• Set the equation to zero: –x2 + 70x – 600 = 0
• Identify the values of a, b and c: a = –1, b = 70, c = –600
−(−70) ± (−70) 2 − 4(1)(600) 70 ± 4900 − 2400 70 ± 2500 70 ± 50

=x = = =
2(1) 2 2 2
70 ± 50 70 − 50 20 70 + 50 120
x= →=
x1 = = 10 …=
x2 = = 60
2 2 2 2 2
e) The zeroes of the profit function are the x-values of the break-even points.
221
example 3.15b Use quadratic functions to complete:

The total cost per week of producing a certain product is: C(x) = 1600 + 1500x
The total revenue per week for this same product is: R(x) = 1600x – x2
a) Determine the break-even points for this commodity.

b) Write the profit function for this commodity.
c) What are the zeroes of this profit function?
d) Compare the zeroes of the profit function with the break-even points
(established in parts A-B) for this commodity.
answers:
a) break-even: C(x) = R(x) → 1600 + 1500x = 1600x – x2

−(−100) ± (−100) 2 − 4(1)(1600) 100 ± 10,000 − 6400 100 ± 3600 100 ± 60

=x = = =
2(1) 2 2 2
100 ± 60 100 − 60 40 100 + 60 160

x= →=
x1 = = 20 …=
x2 = = 80
2 2 2 2 2

Using x = 20 → C(x) = 1600 + 1500x = 1600 + 1500(20) = 31,600
Using x = 20 → R(x) = 1600x – x2 = 1600(20) – (20)2 = 31,600
Using x = 80 → C(x) = 1600 + 1500x = 1600 + 1500(80) = 121,600
Using x = 80 → R(x) = 1600x – x2 = 1600(80) – (80)2 = 121,600
There are two break-even points for this commodity: (20, 31600) and (80, 121600)
b) P(x) = R(x) – C(x) → P(x) = 1600x – x2 – (1600 + 1500x) = 100x – x2 – 1600

c) P(x) = 100x – x2 – 1600
• Set the equation to zero: –x2 + 1600x – 1600 = 0
• Identify the values of a, b and c: a = –1, b = 100, c = –1600
−(−100) ± (−100) 2 − 4(1)(1600) 100 ± 10,000 − 6400 100 ± 3600 100 ± 60

=x = = =
2(1) 2 2 2
100 ± 60 100 − 60 40 100 + 60 160

x= →=
x1 = = 20 …=
x2 = = 80
2 2 2 2 2
d) The zeroes of the profit function are the x-values of the break-even points.
example 3.15c Determine the break-even points for this commodity:

The total cost per week of producing a certain product is: C(x) = 3600 + 25x
+ 0.5x2
The total revenue per week for this same product is: R(x) = 175x – 0.5x2
answers:
break-even: C(x) = R(x) → 3600 + 25x + 0.5x2 = 175x – 0.5x2

−(−150) ± (−150) 2 − 4(1)(3600) 150 ± 22,500 − 14, 400 150 ± 8100 150 ± 90
=x = = =
2(1) 2 2 2
150 ± 90 150 − 90 60 150 + 90 240
x= x1
→= = = 30 …=
x2 = = 120
2 2 2 2 2
223
Using x = 30 → C(x) = 3600 + 25x + 0.5x2 = 3600 + 25(30) + 0.5(30)2 = 4800
Using x = 30 → R(x) = 175x – 0.5x2 = 175(30) – 0.5(30)2 = 4800
Using x = 120 → C(x) = 3600 + 25x + 0.5x2 = 3600 + 25(120) + 0.5(120)2 = 13,800
Using x = 120 → R(x) = 175x – 0.5x2 = 175(120) – 0.5(120)2 = 13,800
There are two break-even points for this commodity: (30, 4800) and (120, 13800)
www.sylvania.com
We do not reinvent
light.
light every day.
Light is OSRAM

Tutorial 3.16 Maximize quadratic revenue and/or profit functions.

Minimize quadratic cost functions.
Businesses will often be interested in maximizing their revenue and/or profit while attempting to minimize
any business costs. When we worked with linear functions, we determined the minimum or maximum
values through linear programming. However, when working with quadratic functions, we will need to
work with the vertex of the appropriate parabolas for the given functions.
Recall that:
• The vertex of a parabola will be a minimum point when a > 0 or the parabola opens
upward.
• The vertex of a parabola will be a maximum point when a < 0 or the parabola opens
downward.
 −b  −b  
• The coordinates of the vertex of a parabola can be determined by:  , F    .
 2a  2a  
example 3.16a The daily profit from the sale of x units of a product is: P(x) = 80x – 0.4x2 – 500.
a) What level of production will maximize profit?
b) What is the maximum profit for this product?
answers:
This parabola will open downward since a = –0.4 → vertex = optimal maximum point
a) The production level that will maximize profit will be the x-coordinate of its vertex:
−b −80 −80
a = –0.4, b = 80 → h== = = 100 → 100 units
2a 2(−0.4) −0.8
b) The maximum profit for this product will be the y-coordinate of the vertex:
P(x) = 60x – x2 – 500 → k = 80(100) – 0.4(100)2 – 500 = 8000 – 4000 – 500 = 3500 → $3500
example 3.16b The yield in bushels from a grove of orange trees is given by: F(x) = x(600 – x).
a) How many trees will maximize the yield?
b) What is the maximum yield for this grove?
answers:
F(x) = x(600 – x) = 600x – x2 → This parabola will open downward since a = –1 → vertex = MAX
a) The level that will maximize the yield will be the x-coordinate of its vertex:
−b −600 −600
a = –1, b = 600 → h == = = 300 → 300 bushels
2a 2(−1) −2
225
b) The maximum yield for this grove will be the y-coordinate of the vertex:
F(x) = 600x – x2 → k = 600(300) – (300)2 = 180,000 – 90,000 = 90,000 → 90,000 oranges
example 3.16c The daily production costs for x units of a commodity is:
C(x) = 3600 – 100x + 2x2.
a) What level of production will minimize costs?
b) What are the minimum daily production costs for this commodity?
answers:
This parabola will open upward since a = +2 → vertex = optimal minimum point
a) The level that will minimize production costs will be the x-coordinate of its vertex:
−b −(−100) 100
a = 2, b = –100 → = h= = = 25 → 25 units
2a 2(2) 4
b) The minimum costs for this commodity will be the y-coordinate of the vertex:
C(x) = 3600 – 100x + 2x2 → k = 3600 – 100(25) + 2(25)2 = 2350 → $2350
example 3.16d The daily production costs for x units is: C(x) = 15,000 – 35x + 0.1x2.
a) What level of production will minimize costs?
b) What are the minimum daily production costs for this commodity?
answers:
This parabola will open upward since a = +0.1 → vertex = optimal minimum point
a) The level that will minimize production costs will be the x-coordinate of its vertex:
−b −(−35) 35 350
a = 0.1, b = –35 → h = = = = = 175 → 175 units
2a 2(0.1) 0.2 2
b) The minimum costs for this commodity will be the y-coordinate of the vertex:
C(x) = 15,000 – 35x + 0.1x2 → k = 15,000 – 35(175) + 0.1(175)2 = 11,938 → $11,938
226
Tutorial 3.17 Use quadratic functions to solve real-world applications.

Although it may not be initially obvious, we can use the concept of quadratics and maximization to solve
other real-world applications. As long as the situation can be described by a quadratic function, we can
use the vertex coordinates to help answer many maximization problems.
example 3.17a Suppose that tickets for a high school concert cost $4 each and that 800
people are expected to attend the concert. However, for each 25¢ increase
in the ticket price attendance will decrease by 20 people.
a) What quadratic function is appropriate for this situation?
b) What ticket price will yield the maximum income?
c) How many people should attend to achieve this maximum income?
d) What is the maximum income for this concert?
360°
.
answers:
 −b  −b   −b −120 −120
thinking
a) F(x) = (ticket price)(people) = (4 + 0.25x)(800 – 20x) → F(x) = 3200 + 120x – 5x2
vertex = (h, k) =  , F    → a = –5, b = 120 → h =

= = = 12
 2a  2a   2a 2 ( −5 ) −10
360°
thinking . 360°
thinking .

Discover the truth


b) x = 12 → ticket price = 4 + 0.25x = 4 + 0.25(12) = 4 + 3 = $7 per ticket

c) x = 12 → people = 800 – 20x = 800 – 20(12) = 800 – 240 = 560 attendees
d) F(x) = 3200 + 120x – 5x2 → h = 12 → k = 3200 + 120(12) – 5(12)2 = 3200 + 1440 – 720 = $3920
example 3.17b Suppose that a chartered bus ride costs $30 per ticket when there are 20
passengers. However, the bus company will reduce the ticket price by $1 for
each additional passenger greater than 20 passengers.
a) What quadratic function is appropriate for this situation?

b) What ticket price will yield the maximum income?
c) How many people should attend to achieve this maximum income?
d) What is the maximum income for this concert?
answers:
a) F(x) = (ticket price)(passengers) = (30 – x)(20 + x) → F(x) = 600 + 10x – x2
 −b  −b   −b −10 −10
vertex = (h, k) =  , F    → a = –1, b = 10 → h =
= = =5
 2a  2a   2a 2 ( −1) −2
b) x = 5 → ticket price = 30 – x = 30 – (5) = $25 per ticket

c) x = 5 → passengers = 20 + x = 20 + (5) = 25 passengers
d) F(x) = 600 + 10x – x2 → h = 5 → k = 600 + 10(5) – (5)2 = 600 + 50 – 25 = $625
228
Tutorial 3.18 Identify the graphs of basic functions.

When graphed, a proper function will pass the “vertical line” test. If a vertical line is drawn on top of
any graphed equation and the vertical line only intersects the graphed equation in exactly one point,
then the graphed equation is a function. Another way to determine a “proper function” is to examine
the ordered pairs for the given equation. If the x-values of these ordered pairs do not repeat and are
paired with a unique y-value, then the given equation will be a function.
The first “basic” functions that we should examine are displayed below…that of an identity function (on
the left)…or, a constant function (in the middle). Both of these functions will have equations that will
produce straight lines as their graphs. These graphs will also pass the “vertical line” test as described above.

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The domain of a function is the set of values that may be used as the “input” (normally, the x) for the
given function. We can determine the domain of a function by looking at how its graph “covers” the
x-axis. If the graph indicates that positive, negative and zero x-values are used, then the domain will be
the set of real numbers (as is the case for the identity or constant functions). If one of these value-types
is not used, then the domain is restricted accordingly.
229
The range of a function is the set of values that are the “output” (normally, the y) after a particular domain-
value is substituted into the given function. We can determine the domain of a function by looking at
how its graph “covers” y-axis. If the graph indicates that positive, negative and zero y-values have been
achieved by the evaluation of the function, then the range will be the set of real numbers (as it is for the
identity function). If one of these value-types is not used, then the range is restricted accordingly (as it
is for the constant function).
The graph of a vertical line shown (on the right of the previous page) is being displayed so that we can
compare it with the two linear functions. Any graphed vertical line is NOT a function…mainly because it
will not pass the “vertical line” test…and, each of the x-values repeat and is paired with a different y-value.
Another set of functions that we should examine are the power functions. Notice that each of these
graphs will pass the “vertical line” test and therefore each of the x-coordinates are paired with a unique
y- coordinate. Each of these functions will produce a curved graph.

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Notice that for the basic quadratic function, we may use any real number (negative, positive or zero) for
the x-value…thus, its domain is the set of real numbers. However, because the parabola appears from
the x-axis up, its range must be restricted to be y ≥ 0 (greater than or equal to zero).
Notice that for the basic cubic function, both the x-values and y-values for this function will include
negatives, positives and zero…thus, both the domain and the range for these functions will be the set
of real numbers.
230
Notice that for the basic square root function, we need to restrict the x-values to be used. Since we
cannot take the square root of a negative number, the domain for this type of function must be x ≥ 0.
And, since we are taking the square root of non-negative numbers, the answers (range) must also be
restricted to y ≥ 0.

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Notice that for the basic cube root function, both the x-values and y-values for this function will include
negatives, positives and zero…thus, both the domain and the range for these functions will be the set
of real numbers.
We can take any of the previously mentioned functions and move (translate) them around the coordinate
grid by changing the appearance of its function equation.
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Notice that the translated (red) parabola has been moved one (1) unit to the right and two (2) units up
from the original position as displayed by the grey parabola. Also notice that the vertex of the translated
parabola can be determined by adding the values of h (horizontal movement) and k (vertical movement)
to the respective coordinates of the vertex: (0 + h, 0 + k) = (0 + 1, 0 + 2) = (1, 2)
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Notice that the translated (red) cubic curve has been moved four (4) units to the right and three (3)
units down from the original position as displayed by the grey cubic curve. Also notice that the values
of h and k from the translated equation are: h = 4, k = –3…the same number of units translated (h =
horizontally, k = vertically) from the original position.
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Notice that the translated (red) quartic curve has been moved three (3) units to the left and two (2)
units down from the original position as displayed by the grey quartic curve. Also notice that the values
of h and k from the translated equation are: h = –3, k = –2…the same number of units translated (h =
horizontally, k = vertically) from the original position.
We have seen how the horizontal and vertical translations can be determined by the values of h and k.
How the graphs can be widened or narrowed from a parent (basic original) function can be determined
by the value of a (the number that is multiplied by the variable expression within a function).
Consider the parent function of: y = x2 – which is the black parabola.
• The red parabola has the equation of: y = (¼)x2 and

a = ¼. Notice that its opening is wider than that of the

black one. Whenever the value of a is a fraction (that

is, 0 < a < 1), the opening of the “new” parabola will be
wider than that of the parent function.
• The blue parabola has the equation of: y = 4x and a = 4.
Notice that its opening is thinner than that of the black

one. Whenever the value of a is larger than one (1), the
opening of the “new parabola will be thinner than that of

the parent function.
Although each of these examples have | a | = 1, the important thing to notice here is that whenever a <
0, the parent graph will be flipped in reference to the axes and the origin (0, 0).
233
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Let’s examine some polynomial functions that consist of joined monomials and takes the form of:
y = anxn + an–1xn–1 + an–2xn–2 +…+ a1x1 + a0
where an ≠ 0, integer n ≥ 0 and n = degree of the function (the polynomial’s highest exponent)…
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When a polynomial function is expressed in its factored form (as are the three examples below), we can
see that the zeroes of the function are where the graph will intersect (cross) the x-axis.
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The number of variable factors can lead to the degree of the polynomial function:
• For polynomial function #1, we have two (2) variable factors. If we express the function
in its unfactored form, the numerator of the function would be: x2 – 2x. Notice that this
polynomial has a degree of two (2).
• For polynomial function #2, we have three (3) variable factors. If we express the function
in its unfactored form, the numerator of the function would be: x3 – 4x. Notice that this
polynomial has a degree of three (3).
• For polynomial function #3, we have four (4) variable factors. If we express the function in
its unfactored form, the numerator of the function would be: x4 + 4x3 – 4x2 – 16x. Notice
that this polynomial has a degree of four (4).
The change in direction can also lead to the degree of the polynomial function:
• For polynomial function #1, if we started to trace the graph starting on its far left, we would
come down the parabola, hit the vertex and then go up the other side. We changed direction
twice. Recall that this polynomial function has a degree of two (2).
go up the curve to about point (–1, 3), we would then change directions and come down
the curve to about point (1, 3) and then change directions one more time…for a total of 3
changes. Recall that this polynomial function has a degree of three (3).
235
come down the curve, we would then change directions and go up the curve, we would then
change directions and go down the curve, and then finally, change direction one more time
and go up the curve…for a total of 4 changes. Recall that this polynomial function has a
degree of four (4).
Using all of this information, we can estimate a possible polynomial function for a given graph. We can
only approximate a polynomial function based on the x-intercepts. We would need to refine the possible
coefficients through examination of the range (y-values) that was displayed.
polynomial function #4 This graph appears to have five (5) zeroes…five (5) points where
the graph intersects the x-axis: (–2, 0), (–1, 0), (0, 0), (1, 0), (2, 0).
Therefore, the polynomial function for this graph probably has a

degree of at least five (5)…which means that the polynomial has as
its highest exponent a five (5) or higher. Using the x-values from the
five (5) points of intersection (in order from smallest to largest), we

can obtain a possible polynomial function for this graph:

y = (x + 2)(x + 1)(x + 0)(x – 1)(x – 2)
In actuality, the polynomial function used to create this graph was:
x( x + 2)( x − 2)( x + 1)( x − 1) x 5 − 5 x 3 + 4 x

y= =
8 8
polynomial function #5 This graph appears to have six (6) zeroes…six (6) points where the
graph intersects the x-axis: (–3, 0), (–2, 0), (–1, 0), (0, 0), (1, 0), (2,

0). Therefore, the polynomial function for this graph probably has a

degree of at least six (6)…which means that the polynomial has as its
highest exponent a six (6) or higher. Using the x-values from the six

(6) points of intersection (in order from smallest to largest), we can

obtain a possible polynomial function for this graph:

y = (x + 3)(x + 2)(x + 1)(x + 0)(x – 1)(x – 2)

x( x + 3)( x + 2)( x − 2)( x + 1)( x − 1) x 6 + 3 x5 − 5 x 4 − 15 x3 + 4 x 2 + 12 x
=y =
8 8
236
polynomial function #6 This graph appears to have seven (7) zeroes…seven (7) points where
the graph intersects the x-axis: (–3, 0), (–2, 0), (–1, 0), (0, 0), (1, 0), (2,
0), (3, 0). Therefore, the polynomial function for this graph probably
has a degree of at least seven (7)…which means that the polynomial
has as its highest exponent a seven (7) or higher. Using the x-values
from the seven (7) points of intersection (in order from smallest to
largest), we can obtain a possible polynomial function for this graph:

y = (x + 3)(x + 2)(x + 1)(x + 0)(x – 1)(x – 2)(x – 3)

x( x + 3)( x − 3)( x + 2)( x − 2)( x + 1)( x − 1) x 7 − 14 x 5 − 41x 3 − 36
=y =
32 32
Another basic function that needs to be addressed is a rational

function that will result in a hyperbola as its graph (as seen at the right):

a
• basic function: F(x) = (where x ≠ 0, a = ≠ 0)
x
• distinctive shape: hyperbola…notice that a hyperbola

is made up of two branches. For this parent graph, the
branches use the two axes as asymptotes (guidelines) but

never intersect them.

• domain: x ≠ 0…fraction denominator ≠ 0

• range: y ≠ 0…if x ≠ 0, then y ≠ 0
• When a > 0 (as in the display), the hyperbola will exist in the first and third quadrants.
However, when a < 0, the hyperbola will exist in the second and fourth quadrants.
Consider these rational functions:

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Notice that the main difference among these three rational functions is their domains. Since the
denominator of any algebraic fraction cannot ever equal zero, we must determine what value would
make that happen and then restrict that value from the domain (values allowed to be used as inputs).
The hyperbola for any rational function will always have two asymptotes – a vertical one as well as
a horizontal one – that will be used as guideline in sketching the actual graph. While the horizontal
asymptote for each of these hyperbolas is: y = 0, notice that:
• The vertical asymptote in the first diagram above is: x = 0 (domain: x ≠ 0).
• The vertical asymptote in the second diagram above is: x = –1 (domain: x ≠ –1)
• The vertical asymptote in the third diagram above is: x = + 1 (domain: x ≠ +1).
Another basic function that needs to be addressed is an absolute value

function that will result in a V-shaped graph (as seen at the right):

• basic function: F(x) = a | x |
• distinctive shape: V-shaped piece-wise function…that has

two branches

• domain: x = real numbers
• range: y ≥ 0

For this specific display, the function is: y = | x |, with a domain where
x = real numbers, and a range where y ≥ 0.
238
An absolute value function is really a piece-wise function which is defined by two or more constraints
(domains, relationships). The absolute value function displayed above can be defined as:
− x when x < 0
F(x) = | x |…or, in its piece-wise format, as: F ( x) = 
+ x when x ≥ 0
where the left-hand branch is defined by the top line (y = –x when x < 0) of the piece-wise function while
the right-hand branch is defined by the bottom line (y = +x when x ≥ 0). Here are some other piece-wise
functions to consider (where each “part” of the piece-wise function is displayed in a different color):

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Quantitative Analysis Mathematics of Finance
4 Mathematics of Finance
Tutorial 4.1 Find the amount of interest for a simple interest loan or investment.
Many financial applications involve algebraic formulas that need to be evaluated to complete the desired
task. One such application would be finding the amount of simple interest on a loan or investment which
uses the formula that appears below.
Simple Interest: I = Prt

where I = interest
P = principal (dollars)
r = annual interest rate (as a decimal)
t = time (years)
example 4.1a Find the amount of interest that will be earned if $5000 is invested for 10
years at an annual simple interest rate of 5%.
This real-world application can be solved by following these simple steps:
1. Determine the known values for the variables within the formula…
P = principal = dollars invested = 5000
r = annual interest rate = 5% → as a decimal = 0.05
t = time in years = 10 years = 10
I = simple interest amount = unknown for this problem
2. Using the known values, evaluate the formula…
I = Prt = (5000)(0.05)(10) = 2500 → $2500 of simple interest was earned
example 4.1b Find the amount of interest that will be earned if $7500 is invested for 3
years at an annual simple interest rate of 1.25%.
Following the same two steps as mentioned above: P = 7500 r = 1.25% = 0.0125 t = 3
I = Prt = (7500)(0.0125)(3) = 281.25 → $281.25 of simple interest was earned
example 4.1c Find the amount of interest that will be earned if $10,000 is invested for 3
months at an annual simple interest rate of 1.5%.
P = 10,000 r = 1.5% = 0.015 t = 3 months = 3/12 years = 0.25

I = Prt = (10,000)(0.015)(0.25) = 37.5 → $37.50 of simple interest was earned
240
Tutorial 4.2 Find the future value for a simple interest investment.
The future value (S) of a loan or investment is the amount that occurs after the simple interest (I = Prt)
has been added to the amount (P) that was invested or borrowed, as is expressed by the formula below.
Future Value of Investment or Loan: S = P + I = P + Prt

where S = future value (in dollars)
P = principal (in dollars)
t = time (years)
example 4.2a Find the future value amount (in dollars) if $5000 is invested for 10 years at
an annual simple interest rate of 5%.
2. Using the known values, evaluate the formula for simple interest…
I = Prt = (5000)(0.05)(10) = 2500
3. Add the interest found to the original principal amount…
S = P + I = 5000 + 2500 = 7500 → future value = $7500
S = P + I = P + Prt = 5000 + 5000(0.05)(10) = 5000 + 2500 = 7500
example 4.2b Find the future value amount (in dollars) if $7500 is invested for 3 years at
an annual simple interest rate of 1.25%.
Following the same three steps as mentioned above:
P = 7500 r = 1.25% = 0.0125 t = 3

I = Prt = (7500)(0.0125)(3) = 281.25
S = P + I = 7500 + 281.25 = 7781.25 → future value = $7781.25
example 4.2c Find the future value amount (in dollars) if $10,000 is invested for 3 months
at an annual simple interest rate of 1.5%.
P = 10,000 r = 1.5% = 0.015 t = 3 months = 3/12 years = 0.25

I = Prt = (10,000)(0.015)(0.25) = 37.5
S = P + I = 10,000 + 37.5 = 10,037.5 → future value = $10,037.50
241
Tutorial 4.3 Find the amount that was invested into an account where simple
interest is used.
Occasionally, we might know the future value amount along with the simple interest rate and the length
of time the simple interest rate was in effect but we do not know the initial amount (P = principal) that
was invested. When this happens, we need to work backwards to determine the desired initial amount.
Recall that the future value of a simple interest investment can be determined by the formula on the left
below. We can adapt this formula to solve for the principal (P) by performing some simple algebraic
steps as shown in the box on the right below.
Future Value of Investment or Loan: S = P + Prt S = P + Prt

where S = future value (in dollars) S = P(1 + rt)
S
P = principal (in dollars) P=
( 1 + rt ) = S ÷ (1 + rt)
t = time (years)
example 4.3a An investor wants to have $30,000 in 9 months. If the best available interest rate is
7.05% per year, how much (to the nearest dollar) must be invested now to yield the
desired amount?
S = future value = dollars that will be in the account = 30,000
r = annual interest rate = 7.05% → as a decimal = 0.0705
t = time in years = 9 months = 9/12 years = 3/4 years = 0.75 years
2. Using the known values, evaluate the adjusted formula version for P…
P = S ÷ (1 + rt) = 30,000 ÷ (1 + (0.0705)(0.75)) = 28493.41089
Rounding mathematically to the nearest dollar: $28,493
example 4.3b What is the present value (to the nearest dollar) of an investment at 9% annual simple
interest if it is worth $1060 in 8 months?
Following the same two steps as mentioned above:
S = 1060 r = 9% = 0.09 t = 8 months = 8/12 years = 2/3 years = 0.666… years

P = S ÷ (1 + rt) = 1060 ÷ (1 + (0.09)(2/3)) = 1000
Rounding mathematically to the nearest dollar: $1000
242
Tutorial 4.4 Find the simple interest rate earned on an investment.

Occasionally, we might know the original principal and the future value amounts along with the length
of time the simple interest rate was in effect but we do not know the rate that was used. When this
happens, we need to work backwards to determine the desired rate (r). Recall that the future value of
an investment can be determined by the formula on the left below. We can adapt this formula to solve
for the annual interest rate (r) by performing some simple algebraic steps as shown in the box on the
right below.

where S = future value (in dollars) S – P = Prt
S-P
P = principal (in dollars) r= = (S – P) ÷ P ÷ t
( P )( t )
t = time (years)
example 4.4a Suppose that $5000 is invested for 10 years at an unknown annual simple interest
rate. At the end of the 10 years, the future value of this account is $7500. What annual
simple interest rate was used?
1. Determine the known values for the variables within the needed formulas…
S = future value (in dollars) = 7500
2. Use the adjusted formula (solved for r) version to determine r…
r = (S – P) ÷ P ÷ t = (7500 – 5000) ÷ 5000 ÷ 10 = 0.05 → rate = 5%
example 4.4b Suppose that $10,000 is invested for 3 months at an unknown annual simple interest
rate. At the end of the 3 months, the future value of this account is $10,037.50 exactly.
What annual simple interest rate was used?
P = 10,000 t = 3 months = 3/12 years = 0.25 S = 10,037.50

r = (S – P) ÷ P ÷ t = (10,037.50 – 10,000) ÷ 10,000 ÷ 0.25 = 0.015 → rate = 1.5%
example 4.4c If a $5000 investment grows to $5937.50 in 15 months, find the simple interest rate
(to the nearest hundredth of a percent) earned on this investment.
P = 5000 t = 15 months = 15/12 years = 1.25 S = 5937.50

r = (S – P) ÷ P ÷ t = (5937.50 – 5000) ÷ 5000 ÷ 1.25 = 0.15 → rate = 15%
243
Tutorial 4.5 Find the time needed for an account with a simple interest rate to
reach a desired future value.
Occasionally, we might know the original principal and the future value amounts along with the simple
interest rate but we do not know the length of time that was involved. When this happens, we need to
work backwards to determine the desired number of years (t). Recall that the future value of an investment
can be determined by the formula on the left below. We can adapt this formula to solve for the number
of years (t) by performing some simple algebraic steps as shown in the box on the right below.

where S = future value (in dollars) S – P = Prt
S-P
P = principal (in dollars) t= = (S – P) ÷ P ÷ r
( P )( t )
t = time (years)
example 4.5a Suppose that $5000 in invested at an annual simple interest rate of 5% and now has
the future value of $7500. How long did this account take to achieve the given future
value amount?
1. Determine the known values for the variables within the needed formulas…
r = annual interest rate = 5% = 0.05
S = future value (in dollars) = 7500
2. Use the adjusted formula (solved for r) version to determine r…

t = (S – P) ÷ P ÷ r = (7500 – 5000) ÷ 5000 ÷ 0.05 = 10 → time = 10 years
example 4.5b Suppose that $10,000 in invested at an annual simple interest rate of 1.5% and now
has the future value of $10,037.50 exactly. How long did this account take to achieve
the given future value amount?
P = 10,000 r = 1.5% = 0.015 S = 10,037.50

t = (S – P) ÷ P ÷ r = (10,037.50 – 10,000) ÷ 10,000 ÷ 0.015 = 0.25
time = 0.25 years = (0.25)(12 months) = 3 months
244
Tutorial 4.6 Find the future value for an account that is compounded periodically.
task. One such application would be finding the amount of periodically compounded interest on a loan
or investment which uses the formula that appears below. The compounding period might be annually
(once a year), semi-annually (twice a year), quarterly (four times a year), monthly (twelve times a year)
or any other preset time period within one year.
 r  mt
Future Value (Periodic Compounding):=
S P 1 + 
 m
where S = future value (dollars)

m = compounding periods per year
t = time (years)
graphing calculator notation: S = P * (1 + r ÷ m)^(m * t)

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example 4.6a What is the future value (to the nearest cent) if $7500 is invested for 5 years at 10%
compounded quarterly?
m = compounding periods per year = quarterly = 4
S = future value amount = unknown for this problem
 r mt  0.10 
(4)(5)
S=P 1 +  = 7500 1 +  =7500 (1 + 0.025 )20 =
12289.6233
 m  4 
graphing calculator solution:
S = 7500 * (1 + 0.10 ÷ 4)^(4 * 5) = 12289.6233
future value (to nearest cent) = $12,289.62
example 4.6b What is the future value (to the nearest cent) if $7500 is invested for 10 years at 5%
compounded monthly?
P = 7500 r = 5% = 0.05 m = monthly = 12 t = 10 years = 10
 r mt  0.05 
(12)(10)
S= P 1 +  = 7500 1 +  7500 (1 + 0.0041666...)20 =
= 12353.57122
 m   12 
graphing calculator solution: S = 7500 * (1 + 0.05 ÷ 12)^(12 * 10) = 12352.57123
246
Tutorial 4.7 Find the amount of interest earned for an account that is
compounded periodically.
If we subtract the amount invested (principal) from the future value amount, we will be able to determine
the exact amount of interest earned for an account that is compounded periodically (yearly, semi-annually,
quarterly, monthly or any other preset time period within one year).
 r  mt
S P 1+ 
 m
where S = future value (dollars) interest earned: I = S – P
where I = interest earned
S = future value (dollars)
r = annual interest rate (as a decimal) P = principal (dollars)
t = time (years)
example 4.7a Determine the amount of interest (to the nearest cent) for an account where $7500
is invested for 5 years at 10% compounded quarterly.
2. Using the known values, evaluate the periodic compounding formula…
 r mt  0.10 
(4)(5)
S=P 1 +  = 7500 1 +  7500 (1 + 0.025 )20 =
= 12289.6233
 m  4 
3. Determine the amount of interest earned by subtracting: S – P…

interest earned = S – P = $12,289.62 – $7500 = $4789.62
I = 7500 * (1 + 0.10 ÷ 4)^(4 * 5) – 7500 = 4789.6233
247
example 4.7b Determine the amount of interest (to the nearest cent) for an account where $7500
is invested for 10 years at 5% compounded monthly?
Following the steps from above:
P = 7500 r = 5% = 0.05 m = monthly = 12 t = 10 years = 10
 r mt  0.05 
(12)(10)
S=P 1 +  = 7500  1 +  12352.57122
=
 m  12 
$12,352.57 – $7500 = 4852.57 → interest earned = $4852.57

graphing calculator solution: S = 7500 * (1 + 0.05 ÷ 12)^(12 * 10) – 7500= 4852.57123
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Tutorial 4.8 Find the amount that was invested into an account that is
compounded periodically.
Occasionally, we might know the future value amount along with the interest rate, the number of
compounding periods per year and the length of time for a particular account that has been periodically
compounded but we do not know the initial amount (principal) that was invested. When this happens,
we need to work backwards to determine the desired principal (P). Recall that the future value of an
investment can be determined by the formula on the left below. We can adapt this formula to solve for
the principal (P) by performing some simple algebraic steps as shown in the box on the right below.
 r  mt
S P 1+   r  mt
 m S P 1 + 
=
where S = future value (dollars)  m
 r  mt
r = annual interest rate (as a decimal) P =S ÷ 1 + 
 m
t = time (years)
graphing calculator notation: P = S ÷ (1 + r ÷ m)^(m * t)
example 4.8a Suppose an unknown amount was invested into an account with an interest rate of
12% compounded quarterly. At the end of 10 years, this account had an accumulated
amount of $50,000. What was the initial amount (principal) that was invested to the
nearest dollar?
P = principal = dollars invested = unknown for this problem
S = future value amount = $50,000
 r mt  0.12 
(4)(10)
40 15327.84204
P S ÷ 1 + = 50, 000 ÷ 1 +
=  = 50, 000 ÷ (1.03)=
 m  4 
P = 50,000 ÷ (1 + 0.12 ÷ 4)^(4 * 10) = 15327.84204
principal (to nearest dollar) = $15,328
249
example 4.8b How much (to the nearest dollar) should be invested into an account that earns an
interest rate of 12% compounded monthly 5 years to achieve the future value amount
of $25,000?
S = 25,000 r = 12% = 0.12 m = monthly = 12 t = 5 years = 5

graphing calculator solution: P = 25,000 ÷ (1 + 0.12 ÷ 12)^(12 * 5) = 13761.2404
principal (to nearest dollar) = $13,761
example 4.8c How much (to the nearest dollar) should be invested into an account that earns an
interest rate of 10% compounded semi-annually for 25 years to achieve the future
value amount of $25,000?
S = 100,000 r = 10% = 0.10 m = semi-annually = 2 t = 25 years = 25

graphing calculator solution: P = 100,000 ÷ (1 + 0.10 ÷ 2)^(2 * 25) = 8720.372697
principal (to nearest dollar) = $8720

Tutorial 4.9 Find the interest rate for a periodically-compounded account.

Occasionally, we might know the future value and the principal amounts along with the number of
compounding periods per year and the length of time for a particular account that has been periodically
compounded but we do not know the annual interest rate at which the principal was invested. When
this happens, we need to work backwards to determine the desired interest rate (r). Recall that the
future value of an investment can be determined by the formula in the first box below. We can adapt
this formula to solve for the annual interest rate (r) by performing some simple algebraic steps as shown
in the second box below.
 r  mt
S P 1 + 
 m
t = time (years)
1 1
mt  mt
 r  mt S  r  mt  S  mt  r
  1 +  
S P 1 +  → = 1 +  →   =
=
 m P  m P 

m 

1 1  1 
 S  mt r −r  S  mt   S  mt 
P = 1+ → = 1−   ( − m ) 1 −  
→ r=

  m m P P
 
graphing calculator notation: r = (–1 * m) * (1 – (S ÷ P)^(1 ÷ (m * t)))
example 4.9a Suppose that $30,000 was invested into an account where the interest was compounded
quarterly. The future value of this account was $66,241.19 at the end of 10 years. Find
the interest rate that was in effect for this account?
P = principal = dollars invested = $30,000
r = annual interest rate = unknown for this problem
251

S = future value amount = $66,241.19

 1   1   1 
  S  mt    66, 241.19  (4)(10)    66, 241.19  40 
( −m ) 1 −    =
r= (−4) 1 − 
  30, 000  
=
(−4) 1 − 
  30, 000  
P
     
r = (–4)[1 – 1.02] = (–4)(–0.02) = 0.08
interest rate ≈ 0.08 → 8%
r = (–1 * 4) * (1 – (66,241,19 ÷ 30,000)^(1 ÷ (4 * 10))) = 0.0800000001
example 4.9b Suppose that $25,000 was invested into an account where the interest was compounded
monthly. The future value of this account was $45,417.42 at the end of 5 years. Find
the interest rate that was in effect for this account?
P = 25,000 S = 45,417.42 m = monthly = 12 t = 5 years = 5

r = (–1 * 12) * (1 – (45,417.42 ÷ 25,000)^(1 ÷ (12 * 5))) = 0.1200000113
interest rate ≈ 0.12 → 12%
example 4.9c Suppose that $10,000 was invested into an account where the interest was compounded
6 times a year. The future value of this account was $14,317.88 at the end of 10 years.
Find the interest rate that was in effect for this account?
P = 10,000 S = 14,317.88 m = 6 t = 10

r = (–1 * 6) * (1 – (14,317.88 ÷ 10,000)^(1 ÷ (6 * 10))) = 0.0359999711
interest rate ≈ 0.036 → 3.6%
Tutorial 4.10 Solve an exponential equation using logarithms.

Occasionally, the unknown that we wish to determine appears in the exponent. Therefore, we need to
know how to solve an exponential equation. To accomplish this task, we may use the logarithm of a
power property. Two versions of this property are shown below (one for common logarithms and one
for natural logarithms):
252
logarithm of a power property logarithm of a power property

(common logarithms) (natural logarithms)
logb XP = P(logb X) ln eP = P(ln e)
example 4.10a Solve for the variable: 4(25)2x = 312,500
1. Isolate (25)2x by dividing both sides of the given equation by 4:

4(25)2x ÷ 4 = 312,500 ÷ 4 → (25)2x = 78,125
2. Apply the logarithm of a power property:
common logarithms version: natural logarithms version:

log(25) = log(78,125)
2x
ln(25)2x = ln(78,125)
(2x)(log(25)) = log(78,125) (2x)( ln(25)) = ln(78,125)
3. Solve for the variable x:
2x = log(78,125) ÷ log(25) 2x = ln(78,125) ÷ ln(25)

2x = 3.5 2x = 3.5
x = 3.5 ÷ 2 = 1.75 → x = 1.75 x = 3.5 ÷ 2 = 1.75 → x = 1.75

• 3

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Notice that it did not make any difference which version of the logarithm of a power property was
used…the final answer came out the same.
example 4.10b Solve for the variable (to the nearest hundredth): 3(9)(2x – 4) = 15
common logarithms version:
3(9)(2x – 4) = 15 → 3(9)(2x – 4) ÷ 3 = 15 ÷ 3 → 9(2x – 4) = 5 → log(9)(2x – 4) = log(5) → (2x – 4)(log(9)) =

(log(5) ÷ log(9)) + 4
log(5) → 2x – 4 = log(5) ÷ log(9) → 2x = [log(5) ÷ log(9)] + 4 → x = ≈ 2.36624338 → x ≈ 2.37
2
natural logarithms version:
3(9)(2x – 4) = 15 → 3(9)(2x – 4) ÷ 3 = 15 ÷ 3 → 9(2x – 4) = 5 → ln(9)(2x – 4) = ln(5) → (2x – 4)( ln(9)) = ln(5) →
(ln(5) ÷ ln(9)) + 4
2x – 4 = ln(5) ÷ ln(9) → 2x = [ln(5) ÷ ln(9)] + 4 → x = ≈ 2.36624338 → x ≈ 2.37
2
254
Tutorial 4.11 Find the time needed for an account that is compounded periodically
to reach a certain future value.
Occasionally, we might know the future value and the principal amounts along with the interest rate
and the number of compounding periods per year for a particular account that has been compounded
periodically but we do not know the time (number of years) at which the principal has been invested.
When this happens, we need to work backwards to determine the desired time (t). Recall that the future
value of an investment can be determined by the formula in the first box below:
 r  mt
S P 1 + 
 m
t = time (years)
We can adapt this formula to solve for the time (t) by performing some simple algebraic steps as shown
in the second set of boxes below:
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Also depending on what calculator is being used, we might have to search for the “log” and the “ln”
functions. Each one might be a button on the face of the calculator or might be hidden within a menu
list that can be found on the calculator.
Although we may use a different logarithm type to adapt the “future value” formula, the final numeric
result will be the same for either version. So, if we wish to use only one type of logarithm function for
all problems, the one to choose would be the natural logarithm (ln).
example 4.11a How many years (to the nearest tenth) would it take $10,000 invested in an account
with an annual interest rate of 6% (compounded quarterly) to reach $20,000?
P = principal = dollars invested = $10,000
r = annual interest rate = 6% = 0.06
t = time in years = unknown for this problem
256
2. Using the known values, evaluate the adjusted formula for t…

S  r m   20,000   0.06 4 

t = log   ÷ log 1 +   = t log  ÷ log  1 +  
P  m    10,000   4  
  →   →
t = log(2) ÷ log(1.015)4 → t = log(2) ÷ [4 * log(1.015)] → t = 11.63888141 ≈ 11.6 years

S  r m   20,000   0.06 4 

t = ln   ÷ ln 1 +   = → t ln   ÷ ln 1 +   → t = ln(2) ÷ ln(1.015) →
4
P  m  
   10,000  

4  

t = ln(2) ÷ [4 * ln(1.015)] → t = 11.63888141 ≈ 11.6 years
example 4.11b How many years (to the nearest tenth) would it take $10,000 invested in an account
with an annual interest rate of 6% (compounded monthly) to reach $30,000?
P = 10,000 S = 30,000 r = 0.06 m = 12

t = log(S ÷ P) ÷ (m * log(1 + r ÷ m)) = log(30,000 ÷ 10,000) ÷ (12 * log(1 + 0.06 ÷ 12)) = 18.35594227
t = ln(S ÷ P) ÷ (m * ln(1 + r ÷ m)) = ln(30,000 ÷ 10,000) ÷ (12 * ln(1 + 0.06 ÷ 12)) = 18.35594227
answer: 18.4 years
257
Tutorial 4.12 Find the future value for an account when interest is compounded
continuously.
task. One such application would be finding the amount of continuously compounded interest on a loan
or investment which uses the formula that appears below.
Future Value (Continuous Compounding): S = Pert

e = irrational number of approximately 2.718281828
r = annual interest rate
t = time (years)
graphing calculator notation: S = P * e^(r * t)
Depending on what calculator being used, we might have to type the exponential value (rt) into the
calculator first and then access the e function and then multiply by P.
example 4.12a Find the future value (to the nearest cent) if $6200 is invested for 5 years at 8%
compounded continuously.

S = Pert = 6200 × e(0.08)(5) = 6200 × e0.4 = (6200)(1.491824698) = 9249.313125
graphing calculator solution: S = 6200 * e^(0.08 * 5) = 9249.313125
future value (to nearest cent) = $9249.31
example 4.12b Find the future value (to the nearest cent) if $1000 is invested for 20 years at 10%
P = 1000 r = 0.10 t = 20
S = Pe = 1000 × e
rt (0.10)(20)
= 1000 × e2 = (1000)(7.389056099) = 7389.056099
graphing calculator solution: S = 1000 * e^(0.10 * 20) = 7389.056099
future value (to nearest cent) = $7389.06
258
example 4.12c Find the future value (to the nearest cent) if $10,000 is invested for 18 years at 5%
P = 10,000 r = 0.05 t = 18
S = Pe = 10,000 × e
rt (0.05)(18)
= 10,000 × e0.9 = (10,000)(2.459603111) = 24596.03111
graphing calculator solution: S = 10,000 * e^(0.05 * 18) = 24596.03111

Tutorial 4.13 Find the amount that was invested into an account that is
Occasionally, we might know the future value amount along with the interest rate and the length of
time for a particular account that has been compounded continuously but we do not know the initial
amount (principal) that was invested. When this happens, we need to work backwards to determine the
desired principal (P). Recall that the future value of an investment can be determined by the formula
on the left below. We can adapt this formula to solve for the principal (P) by performing some simple
algebraic steps as shown in the box on the right below:

where S = future value (dollars) S = Pert
P = principal (dollars) S
P= rt= S ÷ e rt
e = irrational number of approximately 2.718281828 e
t = time (years)
graphing calculator notation: P = S ÷ (e^(r * t))
example 4.13a
What amount (to the nearest dollar) must be invested at 6.5% compounded
continuously so that it will be worth $25,000 after 8 years?
P = principal = dollars invested = unknown for this problem
r = annual interest rate = 6.5% = 0.065
S 25, 000 25, 000

P
= =rt
= = 14863.0137 → principal ≈ $14,863
e e(0.065)(8) e0.52
graphing calculator solution: P = 25,000 ÷ (e^(0.065 * 8)) = 14863.0137
example 4.13b
What amount (to the nearest dollar) must be invested at 2.5% compounded
continuously so that it will be worth $50,000 after 10 years?
S = 50,000 r = 0.025 t = 10
S 50,000 50,000
P
= =rt
= = 38940.03915 → principal ≈ $38,940
e e(0.025)(10) e0.25
graphing calculator solution: P = 50,000 ÷ (e^(0.025 * 10)) = 38940.03915

260
Tutorial 4.14 Find the interest rate for an account that is compounded
continuously.
Occasionally, we might know the future value and the principal amounts along with the length of time
for a particular account that has been compounded continuously but we do not know the annual interest
rate at which the principal was invested. When this happens, we need to work backwards to determine the
desired interest rate (r). Recall that the future value of an investment can be determined by the formula
in the first box below. We can adapt this formula to solve for the annual interest rate (r) by performing
some simple algebraic steps as shown in the second box below:

t = time (years)
S = Pert →
e rt =
S
P →
( ) S
ln e rt = ln  
P →
S
rt = ln  =
P →
S
r ln   ÷ t
P
graphing calculator notation: r = ln(S ÷ P) ÷ t
NOTE: Unlike the other exponential equations that we have discussed, it is best to only use the natural
logarithm version of the logarithm of a power property to alter the original formula. To use
the common logarithm version, we would need to use the numeric approximation for “e” when
completing the process – which would definitely complicate the solution process.
example 4.14a Find the interest rate (to the nearest percent) for an account where an initial
amount of $6200 grew to about $9249 over a 5-year period if the interest earned
was compounded continuously.
S = future value amount = $9249
2. Using the known values, evaluate the adjusted formula…
S  9249 
=r ln  =
 ÷ t ln  =÷5 0.079993229 → interest rate ≈ 8%
P  6200 
graphing calculator notation: r = ln(9249 ÷ 6200) ÷ 5 = 0.0799932291
261
example 4.14b Find the interest rate (to the nearest percent) for an account where an initial amount
of $1000 grew to about $7389 over a 20-year period if the interest earned was
P = 1000 S = 7389 t = 20
S  7389 
=r ln  =
 ÷ t ln  ÷=20 0.09999962 → interest rate ≈ 10%
P  1000 
graphing calculator notation: r = ln(7389 ÷ 1000) ÷ 20 = 0.0999996204
example 4.14c Find the interest rate for an account where an initial amount of $10,000 grew
to about $24,596 over an 18-year period if the interest earned was compounded
continuously.
P = 10,000 S = 24,596 t = 18
S  24,596 
=r ln  =
 ÷ t ln  =÷ 18 0.049999929 → interest rate ≈ 5%
P  10, 000 
graphing calculator notation: r = ln(24,596÷ 10,000) ÷ 18 = 0.0499999297
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Tutorial 4.15 Find the time needed for an account that is compounded
continuously to reach a specified amount.
Occasionally, we might know the future value and the principal amounts along with the annual interest
for a particular account that has been compounded continuously but we do not know the number of years
at which the principal had been invested. When this happens, we need to work backwards to determine
the desired time (t). Recall that the future value of an investment can be determined by the formula in
the first box below. We can adapt this formula to solve for the annual interest rate (r) by performing
some simple algebraic steps as shown in the second box below:

t = time (years)
rt
S = Pert → e =
S
P ( ) S S
→ ln e rt = ln   → rt = ln  =
P P
S
→ t ln   ÷ r
P
graphing calculator notation: t = ln(S ÷ P) ÷ r
NOTE: Unlike the other exponential equations that we have discussed, it is best to only use the natural
logarithm version of the logarithm of a power property to alter the original formula. To use
the common logarithm version, we would need to use the numeric approximation for “e” when
completing the process – which would definitely complicate the solution process.
example 4.15a How long (to the nearest whole year) would $6200 have to be invested at 8%
(compounded continuously) to amount to about $9249?
S = future value amount = $9249
r = interest rate = 8% = 0.08
2. Using the known values, evaluate the adjusted formula…
S  9249 
=t ln  =÷ r ln   ÷ 0.08
= 4.999576819 → number of years ≈ 5
P  6200 
graphing calculator notation: t = ln(9249 ÷ 6200) ÷ 0.08 = 4.999576819
263
example 4.15b How long (to the nearest year) would $1000 have to be invested at an annual rate of
10% (compounded continuously) to amount to about $7389?
P = 1000 S = 7389 r = 0.10
S  7389 
=t ln  =÷ r ln   ÷ 0.10
= 19.99992408 → number of years ≈ 20
P  1000 
graphing calculator notation: t = ln(7389 ÷ 1000) ÷ 0.10 = 19.99992408
example 4.15c How long (to the nearest year) would $10,000 have to be invested at an annual rate
of 5% (compounded continuously) to amount to about $24,596?
P = 10,000 S = 24,596 r = 0.05
S  24,596 
=t ln  =÷ r ln   ÷ 0.05
= 17.9999747 → number of years ≈ 18
P  10, 000 
graphing calculator notation: t = ln(24,596 ÷ 10,000) ÷ 0.05 = 17.9999747



the interest is compounded periodically.
The annual percentage yield (APY) – which may also be called “effective or true annual rate” – is the
rate of interest earned when the effect of compounding is taken into consideration. If the investment
earns interest that is compounded periodically, use the formula stated below:
r m
Annual Percentage Yield (Periodic): APY =−1 +  1 + 
 m
where APY = annual percentage yield

graphing calculator notation: APY = –1 + (1 + (r ÷ m))^m
example 4.16a What is the annual percentage yield (to the nearest hundredth of a percent) for a
nominal rate of 8.6% compounded monthly?
m = compounding periods per year = 12 (monthly)
m 12
 r  0.086 
APY = 1 +  − 1 = 1 +  − 1 = 0.089472133 → APY ≈ 8.95%
 m  12 
graphing calculator solution: APY = –1 + (1 + (0.086 ÷ 12))^12 = 0.0894721336
example 4.16b What is the annual percentage yield (to the nearest hundredth of a percent) for a
nominal rate of 8.6% compounded quarterly?
r = 8.6% = 0.086 m = 4 (quarterly)
m 4
 r  0.086 
APY = 1 +  − 1 = 1 +  − 1 = 0.088813467 → APY ≈ 8.88%
 m  4 
265
example 4.16c What is the annual percentage yield (to the nearest hundredth of a percent) for a
nominal rate of 8.6% compounded semi-annually?
r = 8.6% = 0.086 m = 2 (semi-annually)
m 2
 r  0.086 
APY = 1 +  − 1 = 1 +  − 1 = 0.087849 → APY ≈ 8.78%
 m  2 

the interest is compounded continuously.
The annual percentage yield (APY) – which may also be called “effective or true annual rate” – is the
rate of interest earned when the effect of compounding is taken into consideration. If the investment
earns interest that is compounded continuously, use the formula stated below:
Annual Percentage Yield (Continuous): APY = –1 + er

where APY = annual percentage yield
r = nominal annual rate (as a decimal)
graphing calculator notation: APY = –1 + e^r
example 4.17a What is the annual percentage yield (to the nearest hundredth of a percent) for a
nominal rate of 7.5% compounded continuously?
APY = –1 + (e)r = –1 + (e)0.075 = 0.077884151 → APY ≈ 7.79%
graphing calculator solution: APY = –1 + e^(0.075) = 0.0778841509
example 4.17b What is the annual percentage yield (to the nearest hundredth of a percent) for a
r = 8.6% = 0.086
APY = –1 + (e) = –1 + (e)0.086 = 0.08986328 → APY ≈ 8.98%
r
example 4.17c What is the annual percentage yield (to the nearest hundredth of a percent) for a
r = 1.25% = 0.0125
APY = –1 + (e)r = –1 + (e)0.0125 = 0.012578451 → APY ≈ 1.26%
267
Tutorial 4.18 Compute the future value of an ordinary annuity.

We often invest (or save) money by depositing small amounts at different times. When we make equal
deposits at regular intervals, we are contributing to an annuity. The deposits (or payments) may be
made at any preset period: annually, semi-annually, quarterly, monthly and so on. If these deposits (or
payments) are made at the end of the preset period, the annuity is called an ordinary annuity. The
sum of all of these deposits (or payments) plus all of the interest earned is call the future value of the
ordinary annuity and can be calculated by using the formula below:
 −1 + (1 + i )n 
Future Value of an Ordinary Annuity: S = R  
 i 
where: S = future value (in dollars) of the ordinary annuity

R = amount (dollars) deposited at the end of each period
nominal annual rate as a decimal r
i = interest rate per period (as a decimal) = =
total compounding periods per year m
n = total number of compounding periods = (compounding periods per year)(years) =
(m)(t)

graphing calculator notation:

S = R * ((–1 + (1 + i)^n) ÷ i)
S = R * ((–1 + (1 + (r ÷ m))^n) ÷ (r ÷ m))
example 4.18a Suppose that you deposit $300 at the end of each quarter into an account that pays
4% compounded quarterly. How much money (to the nearest dollar) will you have
in the account in 2¼ years?
R = 300 r = 4% = 0.04 m = 4 (quarterly) t = 2.25 years = 2.25
2. Use the values for r, m and t to determine the appropriate values for i and n:
r 0.04
i
= = = 0.01 n = (m)(t) = (4)(2.25) = 9
m 4
 −1 + (1 + i )n   −1 + (1 + 0.01)9 
S = R
=  300
=   2810.558181
 i   0.01 
graphing calculator solution: S = 300 * ((–1 + (1.01)^9) ÷ 0.01) = 2810.558181

future value ≈ $2811
example 4.18b Find the future value (to the nearest cent) of an ordinary annuity of $1000 paid
monthly for 4 years if the interest rate is 9%, compounded monthly.
r 0.09
i
R = 1000 r = 0.09 m = 12 t = 4 = = = 0.0075 n = (m)(t) = (12)(4) = 48
m 12
 −1 + (1 + i )n   −1 + (1 + 0.0075)48 
=S R=  1000  =  57520.71111
 i   0.0075 
S = 1000 * ((–1 + (1.0075)^48) ÷ 0.0075) = 57520.71111
future value ≈ $57,521
269
example 4.18c Suppose Donald’s parents agree to invest $1000 (at 8%, compounded semi-annually)
for him on the December 31st or the June 30th following each semester that he makes
the Dean’s list during his 4 years in college. If Donald makes the Dean’s list in each
of the 8 semesters, how much money (to the nearest dollar) will his parents have to
give him when he graduates?
r 0.08
i
R = 1000 r = 0.08 m = 2 t = 4 = = = 0.04 n = (m)(t) = (2)(4) = 8
m 2
 −1 + (1 + i )n   −1 + (1 + 0.04)8 
= S R=   1000  =  9214.22626
 i   0.04 
S = 1000 * ((–1 + (1 + (0.08 ÷ 2))^8) ÷ (0.08 ÷ 2)) = 9214.22626
future value ≈ $9214

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1349906_A6_4+0.indd 1 22-08-2014 12:56:57


Tutorial 4.19 Compute the payment amounts required in order for an ordinary
annuity to have a specified future value.
Occasionally, we might know the future value amount needed for an ordinary annuity along with the
interest rate, the number of compounding periods per year and the length of time for a particular annuity
that has been periodically compounded but we do not know the payment amount needed to accomplish
the desired monetary goal. When this happens, we need to work backwards to determine the desired
payment (R). Recall that the future value of an ordinary annuity can be determined by the formula in
the top box below. We can adapt this formula to solve for the deposit amount (R) by performing some
simple algebraic steps as shown in the second box below.
 −1 + (1 + i )n 
Future Value of an Ordinary Annuity: S = R  
 i 

(m)(t)
 −1 + (1 + i )n   −1 + (1 + i )n  S (i )
S = R  S÷
R= =
 i   i  −1 + (1 + i )n
→

R = S * i ÷ (–1 + (1 + i)^n)
R = S * (r ÷ m) ÷ (–1 + (1 + (r ÷ m))^(m * t))
example 4.19a A family wants to have a $500,000 college fund for their children at the end of 20
years. What contribution (to the nearest dollar) must be made at the end of each
quarter if their investment pays 7.8%, compounded quarterly?
S = 500,000 r = 7.8% = 0.078 m = 4 (quarterly) t = 20 years = 20
2. Use the values for r, m and t to determine the appropriate values for i and n:
r 0.078
i
= = = 0.0195 n = (m)(t) = (4)(20) = 80
m 4
271
3. Using the known values, evaluate the adjusted formula for R…

 S (i )   (500,000)(0.0195) 
= R=   =  2643.780471
 −1 + (1 + i )n   −1 + (1 + 0.0195)80 

R = 500,000 * 0.0195 ÷ (–1 + (1.0195)^80) = 2643.780471
R = 500,000 * (0.078 ÷ 4) ÷ (–1 + (1 + (0.078 ÷ 4))^(4 * 20)) = 2643.780471
quarterly deposit ≈ $2644
example 4.19b The Jacksons want to save $50,000 in 3 years for a down payment on a house. If they
make deposits at the end of each month into an account paying 12% (compounded
monthly), what size payments (to the nearest dollar) are required to meet their goal?
r 0.12
S = 50,000
r = 0.12 m = 12
t = 3
i
= = n
= 0.01 = (m)(t) = (12)(3) = 36
m 12

S (i ) 
(50, 000)(0.01) 
R=
=   =  1160.715491
 −1 + (1 + i )n   −1 + (1 + 0.01)36 

R = 50,000 * 0.01 ÷ (–1 + (1.01)^36) = 1160.715491
R = 50,000 * (0.12 ÷ 12) ÷ (–1 + (1 + (0.12 ÷ 12))^(12 * 3)) = 1160.715491
monthly deposit ≈ $1161

Tutorial 4.20 Find out how long it will take for an ordinary annuity to reach a savings goal.
Occasionally, we might know the future value and the periodic payment amounts along with the interest rate and
the number of compounding periods per year for a particular account that has been compounded periodically but
we do not know the time (number of years) at which the annuity payments have been invested. When this happens,
we need to work backwards to determine the desired time (t). Recall that the future value of an ordinary annuity
can be determined by the formula in the top box below. We can adapt this formula to solve for the deposit amount
(R) by performing some simple algebraic steps as shown in the second box below:
 −1 + (1 + i )n   −1 + (1 + i )mt 
Future Value of an Ordinary
= Annuity: S R=   R 
 i   i 
n = total number of compounding periods = (compounding periods per year)
(years) = (m)(t)
 −1 + (1 + i )mt  S  −1 + (1 + i )mt  S (i ) S (i )
S = R  → = → =−1 + (1 + i )mt → 1 + (1 i )mt
=+
 i  R  i  R R

common logarithms version: natural logarithms version:


log  1 +

S (i ) 
R (
 = log (1 + i )

mt
) 
ln  1 +

S (i ) 
R (
 =ln (1 + i )

mt
)
 S (i )   S (i ) 
log  1 + = ( mt )(log(1 + i )) ln  1 + = ( mt )(ln(1 + i ))
 R   R 
 S (i )   S (i ) 
log  1 + ln  1 +
 R  R 
mt = mt = 
log(1 + i ) ln(1 + i )
 S (i ) 
ln  1 +
 S (i )  R 
log  1 + t= 
 R  ( m )(ln(1 + i ))
t=
( m )(log(1 + i ))

t = log(1 + (S * i ÷ R)) ÷ (m * log(1 + i))
t = log(1 + (S * (r ÷ m) ÷ R)) ÷ (m * log(1 + (r ÷ m)))

t = ln(1 + (S * i ÷ R)) ÷ (m * ln(1 + i))
t = ln(1 + (S * (r ÷ m) ÷ R)) ÷ (m * ln(1 + (r ÷ m)))
273
Recall that depending on what calculator is being used, we might have to search for the “log” and the
“ln” functions. Each one might be a button on the face of the calculator or each might be hidden within
a menu list on the calculator.
example 4.20a If $5000 is deposited at the end of each half year in an account that earns 6.5%
(compounded semi-annually), how many years (to the nearest tenth of a year) will
it take before the account contains $125,000?
R = 5000 r = 6.5% = 0.065 m = 2 (semi-annually) S = 125,000
2. Use the values for r and m to determine the appropriate value for i:
r 0.065
i
= = = 0.0325
m 2
 S (i )   (125,000)(0.0325) 
log 1 +  log 1 + 
t=  R 
→ t=  5000  → t = log (1 + (25)(0.0325) ) →
(m)(log(1 + i )) (2)(log(1 + 0.0325)) (2)(log(1.0325))
log (1 + 0.8125 ) log (1.8125 )

t= → t= → t = 9.297224387 ≈ 9.3
(2)(log(1.0325)) (2)(log(1.0325))
graphing calculator solution (using log):

t = log(1 + (125,000 * 0.0325 ÷ 5000)) ÷ (2 * log(1.0325)) = 9.297224387
t = log(1 + (125,000 * (0.065 ÷ 2) ÷ 5000)) ÷ (2 * log(1 + (0.065 ÷ 2))) = 9.297224387
 S (i )   (125,000)(0.0325) 
ln 1 +  ln 1 + 
t= 
R 
→ t= 
5000  → t = ln (1 + (25)(0.0325) ) →
(m)(ln(1 + i )) (2)(ln(1 + 0.0325)) (2)(ln(1.0325))
ln (1 + 0.8125 ) ln (1.8125 )
t= → t= → t = 9.297224387 ≈ 9.3
(2)(ln(1.0325)) (2)(ln(1.0325))
graphing calculator solution (using ln):

t = ln(1 + (125,000 * 0.0325 ÷ 5000)) ÷ (2 * ln(1.0325)) = 9.297224387
t = ln(1 + (125,000 * (0.065 ÷ 2) ÷ 5000)) ÷ (2 * ln(1 + (0.065 ÷ 2))) = 9.297224387
274
example 4.20b If $2500 is deposited at the end of each month in an account that earns an annual
rate of 7.5% compounded monthly, how many years (to the nearest tenth of a year)
will it take before the account contains $100,000?
r 0.075
R = 2500 r = 0.075 m = 12 (monthly) S = 100,000 i = = = 0.00625
m 12
 S (i )   (100,000)(0.00625) 
log 1 +  log 1 +  log (1 + (40)(0.00625) )
 R   2500 
=t = =
(m)(log(1 + i )) (12)(log(1.00625)) (12)(log(1.00625))
log (1 + 0.25 ) log (1.25 )

=t = = 2.984535344 ≈ 3.0
(12)(log(1.00625)) (12)(log(1.00625))
graphing calculator solution (using log):

t = log(1 + (100,000 * 0.00625 ÷ 2500)) ÷ (12 * log(1.00625)) = 2.984535344
t = log(1 + (100,000 * (0.075 ÷ 12) ÷ 2500)) ÷ (12 * log(1 + (0.075 ÷ 12))) = 2.984535344
graphing calculator solution (using ln):

t = ln(1 + (100,000 * 0.00625 ÷ 2500)) ÷ (12 * ln(1.00625)) = 2.984535344
t = ln(1 + (100,000 * (0.075 ÷ 12) ÷ 2500)) ÷ (12 * ln(1 + (0.075 ÷ 12))) = 2.984535344
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light.
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Light is OSRAM

Tutorial 4.21 Compute the future values of an annuity due.

We often invest (or save) money by depositing small amounts at different times. When we make equal
deposits at regular intervals, we are contributing to an annuity. The deposits (or payments) may be
made at any preset period: annually, semi-annually, quarterly, monthly and so on. If these deposits (or
payments) are made at the beginning of the preset period, the annuity is called an annuity due. The
sum of all of these deposits (or payments) plus all of the interest earned is call the future value of the
annuity due and can be calculated by using the formula below:
 −1 + (1 + i )n 
Future Value of an Annuity
= Due: S R  (1 + i )
due  i 
where: Sdue = future value (in dollars) of the annuity due

R = amount (dollars) deposited at the beginning of each period
(years) = (m)(t)

Sdue = R * (1 + i) * ((–1 + (1 + i)^n) ÷ i)
Sdue = R * (1 + (r ÷ m)) * ((–1 + (1 + (r ÷ m))^(m * t)) ÷ (r ÷ m))
example 4.21a Find the future value (to the nearest dollar) of an annuity due of $250 each quarter
for 3 years at 12%, compounded quarterly.
R = 250 r = 12% = 0.12 m = 4 (quarterly) t = 3
2. Use the values for r, m and t to determine the appropriate value for i and n:
r 0.12
i
= = = 0.03 n = (m)(t) = (4)(3) = 12
m 4

 −1 + (1 + i )n   −1 + (1 + 0.03)12   −1 + (1.03)12 
= S due R  =  (1 + i ) 250  =  (1 + 0.03) 250   (1.03)
 i   0.03   0.03 
S due = 3654.447612 ≈ $3654

Sdue = 250 * (1.03) * ((–1 + (1.03)^12) ÷ 0.03) = 3654.447612
Sdue = 250 * (1 + (0.12 ÷ 4)) * ((–1 + (1 + (0.12 ÷ 4))^(4 * 3)) ÷ (0.12 ÷ 4)) = 3654.447612
276
example 4.21b Find the future value (to the nearest dollar) of an annuity of $500 paid at the beginning
of each period for 10 years if the interest rate is 8%, compounded semi-annually.
R = 500 r = 8% = 0.08 m = 2 (semi-annually) t = 10

r 0.08
i =
= = 0.04 n = (m)(t) = (2)(10) = 20
m 2
 −1 + (1 + i )n   −1 + (1.04)20 
=S due R  =  (1 + i ) 500  =  (1.04) 15484.60086 ≈ $15,485
 i   0.04 

Sdue = 500 * (1.04) * ((–1 + (1.04)^20) ÷ 0.04) = 15484.60086
Sdue = 500 * (1 + (0.08 ÷ 2)) * ((–1 + (1 + (0.08 ÷ 2))^(2 * 10)) ÷ (0.08 ÷ 2)) = 15484.60086
example 4.21c A house is rented for $3600 per month, with each month’s rent payable in advance. If
money is worth 6% (compounded monthly) and the rent is deposited in an account,
what is the future value of the rent for one year?
R = 3600 r =6% = 0.06 m = 12 (monthly) t = 1
r 0.06
i
= = = 0.005 n = (m)(t) = (12)(1) = 12
m 12
 −1 + (1 + i )n   −1 + (1.005)12 
=S due R  =  (1 + i ) 3600  =  (1.005) 44630.06466 ≈ $44,630
 i   0.005 

Sdue = 3600 * (1.005) * ((–1 + (1.005)^12) ÷ 0.005) = 44630.06467
Sdue = 3600 * (1 + (0.06 ÷ 12)) * ((–1 + (1 + (0.06 ÷ 12))^(12 * 1)) ÷ (0.06 ÷ 12)) = 44630.06467
277
Tutorial 4.22 Compute the payment amounts required in order for an annuity due
to have specified future values.
Occasionally, we might know the future value along with the interest rate, the number of compounding
periods per year and the length of time for a particular account that has been compounded periodically
but we do not know the periodic payment amount (R). When this happens, we need to work backwards
to determine the desired value. Recall that the future value of an annuity due can be determined by
the formula in the top box below. We can adapt this formula to solve for the deposit amount (R) by
performing some simple algebraic steps as shown in the second box below:
 −1 + (1 + i )n 
=
Future Value of an Annuity Due: Sdue R   (1 + i )
 i 

(years) = (m)(t)
 -1 + (1 + i )n   −1 + (1 + i )n  ( Sdue ) ( i )
 ÷ (1 + i ) R =
=Sdue R 
 i
 (1 + i )

→
R= Sdue ÷ 
 i 
→
(
−1 + (1 + i )n ( 1 + i ) )
R = Sdue * i ÷ (–1 + (1 + i)^n) ÷ (1 + i)
R = Sdue * (r ÷ m) ÷ (–1 + (1 + (r ÷ m))^(m * t)) ÷ (1 + (r ÷ m))
example 4.22a How much must be deposited (to the nearest dollar) at the beginning of each year
into an annuity account that pays 8% (compounded annually) so that the account
will contain $100,000 at the end of 10 years?
Sdue = 100,000 r = 8% = 0.08 m = 1 (annually) t = 10
r 0.08
i
= = = 0.08 n = (m)(t) = (1)(10) = 10
m 1

( Sdue )( i ) (100,000 )( 0.08)
= R = = 6391.619324 → initial deposit ≈ $6392
(
−1 + (1 + i )n 1 + i )( (
−1 + (1 + 0.08)10 1 + 0.08
) )( )
278

R = 100,000 * 0.08 ÷ (–1 + (1.08)^10) ÷ (1.08) = 6391.619324
R = 100,000 * (0.08 ÷ 1) ÷ (–1 + (1 + (0.08 ÷ 1))^(1 * 10)) ÷ (1 + (0.08 ÷ 1)) = 6391.619324
example 4.22b Determine the size of the payments (to the nearest dollar) that must be deposited
at the beginning of each period in an account that pays 7.8% (compounded semi-
annually) so that the account will have a future value of $120,000 at the end of 15
years?
Sdue = 120,000 r = 7.8% = 0.078 m = 2 (semi-annually) t = 15
r 0.078
i
= = = 0.039 n = (m)(t) = (2)(15) = 30
m 2
( Sdue )( i )
360°)
(120,000 )( 0.039 )
.
=R = = 2093.93643 ≈ $2094
( −1 + (1 + i )n (1 + i ) ) ( −1 + (1 + 0.039)30 (1 + 0.039 )
thinking
R = 120,000 * 0.039 ÷ (–1 + (1.039)^30) ÷ (1.039) = 2093.93643
R = 120,000 * (0.078 ÷ 2) ÷ (–1 + (1 + (0.078 ÷ 2))^(2 * 15)) ÷ (1 + (0.078 ÷ 2)) = 2093.93643
360°
thinking . 360°
thinking .

Discover the truth


Tutorial 4.23 Find out how long it will take for an annuity due to reach a savings
goal.
Occasionally, we might know the future value and the periodic payment amounts along with the interest
rate and the number of compounding periods per year but we do not know the number of years (time)
for the given future value to be reached. When this happens, we need to work backwards to determine
the desired value. Recall that the future value of an annuity due can be determined by the formula in the
top box below. We can adapt this formula to solve for the time (t) by performing some simple algebraic
steps as shown in the second box below.
 −1 + (1 + i )n   −1 + (1 + i )mt 
Future Value of an Annuity
= Due: Sdue R  =  (1 + i ) R   (1 + i )
 i   i 

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t = log(1 + (Sdue * i) ÷ (R * (1 + i))) ÷ (m * log(1 + i))
t = ln(1 + (Sdue * i) ÷ (R * (1 + i))) ÷ (m * ln(1 + i))
280
example 4.23a Suppose that you deposit $1000 in an account at the beginning of each 3-month
period for a certain number of years. If the account pays interest that is compounded
quarterly at the annual rate of 11%, how long (to the nearest tenth of a year) will it
take for the account to reach $125,000?
Sdue = 125,000 R = 1000 r = 11% = 0.11 m = 4 (quarterly)
2. Use the values for r and m to determine the appropriate value for i:
r 0.11
i
= = = 0.0275
m 4
 ( S )( i )   (125, 000)(0.0275)   3437.5 

log 1 + due  log 1 +  log 1 + 
 R(1 + i )   (1000)(1 + 0.0275)  → t =  1027.5  → t = 13.5386354
t= → t=
m ⋅ log(1 + i ) (4)(log(1 + 0.0275)) (4)(log(1.0275))

t = log(1 + (125,000 * 0.0275) ÷ (1000 * 1.0275)) ÷ (4 * log(1.0275)) = 13.5386354 ≈ 13.5 years
 ( S )( i )   (125, 000)(0.0275)   3437.5 

ln 1 + due  ln 1 +  ln 1 + 
R (1 + i ) (1000)(1 + 0.0275)  → t =  1027.5  → t = 13.5386354
t=  → t= 
m ⋅ ln(1 + i ) (4)(ln(1 + 0.0275)) (4)(ln(1.0275))

t = ln(1 + (125,000 * 0.0275) ÷ (1000 * 1.0275)) ÷ (4 * ln(1.0275)) = 13.5386354 ≈ 13.5 years
example 4.23b A property owner has several rental units and wants to build more. He plans on
depositing $1750 at the beginning of each month in an account that earns an annual
rate of 7.2% (compounded monthly). How long (to the nearest tenth of a year) will
it take for the account to reach $150,000?
r 0.072
i
Sdue = 150,000 R = 1750 r = 7.2% = 0.072 m = 12 (monthly) = = = 0.006
m 12
281
 ( S )( i )   (150, 000)(0.006) 
log 1 + due  log 1 + 
 R (1 + i ) → t=  (1750)(1 + 0.006)  → t = 5.752135126
t=
m ⋅ log(1 + i ) (12)(log(1 + 0.006))

t = log(1 + (150,000 * 0.006) ÷ (1750 * 1.006)) ÷ (12 * log(1.006)) = 5.752135126 ≈ 5.8 years
 ( S )( i )   (150, 000)(0.006) 
ln 1 + due  ln 1 + 
R(1 + i )  (1750)(1 + 0.006) 
t=  → t=  → t = 5.752135126
m ⋅ ln(1 + i ) (12)(ln(1 + 0.006))

t = ln(1 + (150,000 * 0.006) ÷ (1750 * 1.006)) ÷ (12 * ln(1.006)) = 5.752135126 ≈ 5.8 years


Tutorial 4.24 Compute the present value of an ordinary annuity.

Recall that an ordinary annuity is a set of equal payments that occur at the end of evenly spaced periods
(intervals). The present value of an ordinary annuity is the amount invested today in an ordinary annuity
account at a specified interest rate so that future equal withdrawals (payments) can be made based on
the original principal and all of the accumulated interest. The idea here is that these equal withdrawals
(payments) will completely exhaust the accumulated amount at the end of the annuity.
 1 - 1 + i -n 
 ( ) 
Present Value of an Ordinary Annuity: An = R  
i
 
where: An = present value (dollars)
R = amount (dollars) withdrawn at the end of each period
(years) = (m)(t)

An = R * (1 – (1 + i)^–n) ÷ i
So, if we know the approximate amount of equal withdrawals (payments) needed, we can use the formula
above to determine the present value needed to fund the desired annuity plan.
example 4.24a How much (to the nearest dollar) is needed in an account that earns 8.4% compounded
monthly in order to withdraw $900 at the end of each month for 20 years?
R = 900 r = 8.4% = 0.084 m = 12 (monthly) t = 20
r 0.084
i
= = = 0.007 n = (m)(t) = (12)(20) = 240
m 12
3. Using the known values, evaluate the formula for An…
1- (1 + i )-n  1- 1 + 0.007 )-240 

= 
An R=  900  ( =  104468.4044 ≈ $104,468
 i   0.007 
   
graphing calculator solution: An = 900 * (1 – (1.007)^–240) ÷ 0.007 = 104468.4044
283
example 4.24b How much (to the nearest dollar) is needed in an account that earns an annual rate
of 8.7% compounded monthly in order to withdraw $1000 at the end of each month
for 17 years?
R = 1000 r = 8.7% = 0.087 m = 12 (monthly) t = 17
r 0.087
i
= = = 0.00725 n = (m)(t) = (12)(17) = 204
m 12
1- (1 + i )-n  1- 1.00725 )-204 

= 
An R=  1000  ( =  106333.174 ≈ $106,333
 i   0.00725 
   
graphing calculator solution: An = 1000 * (1 – (1.00725)^–204) ÷ 0.00725 = 106333.174
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Tutorial 4.25 Compute the payments for a specified present value for an ordinary
annuity.
Occasionally, we might know the present value amount along with the interest rate and the length of
time the interest rate was in effect but we do not know the payment (withdrawal) amount that will be
possible from the accumulated principal and interest of the established ordinary annuity. When this
happens, we need to work backwards to determine the desired payment (withdrawal) amount. Recall
that the present value of an ordinary annuity can be determined by the formula in the first box below.
We can adapt this formula to solve for the payment (withdrawal) amount (R) by performing some simple
algebraic steps as shown in the second box below:
 1 - 1 + i -n 
( ) 
Present Value of an Ordinary Annuity: An = R 
 i 
 
where: An = present value (dollars)

R = amount (dollars) withdrawn at the end of each period
(years) = (m)(t)
 1 - 1 + i -n   1 - 1 + i -n 
 ( )   ( )  ( An ) ( i )
An = R R=
An ÷ =
 i   i  1 - 1 + i -n
 →   ( )

R = An * i ÷ (1 – (1 + i)^–n)
example 4.25a With a present value of $250,000, what size withdrawals (to the nearest dollar) can
be made at the end of each quarter for the next 10 years if money is worth 6.4%,
compounded quarterly?
An = 250,000 r = 6.4% = 0.064 m = 4 (quarterly) t = 10
r 0.064
i
= = = 0.016 n = (m)(t) = (4)(10) = 40
m 4
285
=R =
( An ) (i) ( 250,000= ) (0.016) 8510.103847 ≈ $8510
1- (1 + i )-n 1- (1.016 )-40
graphing calculator solution: R = 250,000 * 0.016 ÷ (1 – 1.016^–40) = 8510.103847
example 4.25b If $100,000 is invested in an annuity that earns an annual rate of 6.8% (compounded
quarterly), what payments (to the nearest dollar) will it provide at the end of each
quarter for the next 5.5 years?
An = 100,000 r = 6.8% = 0.068 m = 4 (quarterly) t = 5.5
r 0.068
i
= = = 0.017 n = (m)(t) = (4)(5.5) = 22
m 7
=R =
( An ) (i) (100,000= ) (0.017) 5486.400338 ≈ $5486
1- (1 + i )-n 1- (1.017 )-22

Tutorial 4.26 Compute the present value of an annuity due.

Recall that an annuity due is a set of equal payments that occur at the beginning of evenly spaced
periods (intervals). The present value of an annuity due is the amount invested today in an annuity due
account at a specified interest rate so that future equal withdrawals (payments) can be made based on
the original principal and all of the accumulated interest. The idea here is that these equal withdrawals
(payments) will completely exhaust the accumulated amount at the end of the annuity. So, if we know
the approximate amount of equal withdrawals (payments) needed, we can use the formula below to
determine the present value needed to fund the desired annuity plan.
 1 - 1 + i -n 
( ) 
=
Present Value of an Annuity Due: A( n , due ) R  (1 + i )
 i 
 
where: A(n, due) = present value (dollars)

R = amount (dollars) withdrawn at the beginning of each period
(years) = (m)(t)

An = R * (1 + i) * (1 – (1 + i)^–n) ÷ i
example 4.26a If the money is worth 6% (compounded quarterly), find the present value (to the
nearest dollar) of an annuity due that pays $6000 at the beginning of each quarter
for the next 12 years.
R = 6000 r = 5.8% = 0.058 m = 4 (quarterly) t = 12
r 0.058
i
= = = 0.0145 n = (m)(t) = (4)(12) = 48
m 4

1- (1 + i )-n  1- 1.0145 )-48 
= A( n , due ) R  =  (1 + i ) 6000  ( =  (1.0145) 209445.8558
 i   0.0145 
   
present value needed to fund annuity ≈ $209,446
graphing calculator solution: An = 6000 * 1.0145 * (1 – 1.0145^–48) ÷ 0.0145 = 209445.8558
287
example 4.26b Suppose an annuity will pay $20,000 at the beginning of each year for the next 10
years. How much money (to the nearest dollar) is needed to start this annuity if it
earns 6.8%, compounded annually?
R = 20,000 r = 6.8% = 0.068 m = 1 (annually) t = 10
r 0.068
i
= = = 0.068 n = (m)(t) = (1)(10) = 10
m 1
1- (1 + i )-n  1- (1.068 )-10 

A( n , due ) R
=  =  (1 + i ) 20,000   (1.068) = 151420.5483
 i   0.068 
   

graphing calculator solution: An = 20,000 * 1.068 * (1 – 1.068^–10) ÷ 0.068 = 151420.5483
example 4.26c A trust will provide $15,000 to a county library at the beginning of each
3-month period for the next 2.5 years. If the money is worth an annual rate of
7.2% (compounded quarterly), find the present value amount (to the nearest
dollar) of this trust.
R = 15,000 r = 7.2% = 0.072 m = 4 (quarterly) t = 2.5
r 0.072
i
= = = 0.018 n = (m)(t) = (4)(2.5) = 10
m 4
1- (1 + i )-n  1- 1.018 )-10 

A( n , due ) R 
= =  (1 + i ) 15,000  ( =  (1.018) 138610.542
 i   0.018 
   

graphing calculator solution: An = 15,000 * 1.018 * (1 – 1.018^–10) ÷ 0.018 = 138610.542
288
Tutorial 4.27 Compute the payments for a specified present value for an annuity
due.
Occasionally, we might know the present value amount along with the interest rate and the length of
time the interest rate was in effect but we do not know the payment (withdrawal) amount that will be
possible from the accumulated principal and interest of the established annuity due. When this happens,
we need to work backwards to determine the desired payment (withdrawal) amount.
Recall that the present value of an annuity due can be determined by the formula in the first box below.
We can adapt this formula to solve for the payment (withdrawal) amount (R) by performing some simple
algebraic steps as shown in the second box below.

 1 - 1 + i -n 
Present Value of an Annuity Due: A( n , due ) R  ( ) 
= (1 + i )
 i 
 

R = amount (dollars) withdrawn at the beginning of each period

(years) = (m)(t)
 1 - 1 + i -n 
( )   1 - 1 + i -n 
( )  R=
( )
A( n , due ) ( i )
=A( n , due ) R  (1 + i ) =R A( n , due ) ÷  ÷ (1 + i ) -n
 i   i  (1 + i )  1 - ( 1 + i ) 
  →   →  

R = A(n, due) * i ÷ (1 + i) ÷ (1 – (1 + i)^–n)
example 4.27a Recent sales of some real estate and record profits make it possible for a manufacturer
to set aside $2,000,000 in a fund to be used for modernization and remodeling. How
much (to the nearest dollar) can be withdrawn from this fund at the beginning of
each half-year period for the next 3 years if the fund earns 7.7%, compounded semi-
annually?
A(n, due) = 2,000,000 r = 7.7% = 0.077 m = 2 (semi-annually) t = 3
r 0.077
i
= = = 0.0385 n = (m)(t) = (2)(3) = 6
m 2
= R =
( A( n, due) ) ( i ) (2,000,000)(0.0385)
= 365587.6599

(
(1 + i ) 1- (1 + i )-n ) (
(1.0385) 1- (1.0385 )-6 )
possible withdrawal amount ≈ $365,588
graphing calculator solution: R = 2,000,000 * 0.0385 ÷ 1.0385 ÷ (1 – 1.0385^–6) = 365587.6599
290
example 4.27b Suppose a manufacturer has set aside $925,000 in a fund to be used for modernization
and remodeling. How much (to the nearest dollar) can be withdrawn from this fund
at the beginning of each quarter for the next 5 years if the fund earns an annual rate
of 6.8%, compounded quarterly?
A(n, due) = 925,000 r = 6.8% = 0.068 m = 4 (quarterly) t = 5
r 0.068
i
= = = 0.017 n = (m)(t) = (4)(5) = 20
m 4
=R =
( A( n, due) ) ( i ) (925,000)(0.017)
= 54027.02337
( )
(1 + i ) 1- (1 + i ) - n
( )
(1.017) 1- (1.017 ) -20
possible withdrawal amount ≈ $54,027

graphing calculator solution: R = 925,000 * 0.017 ÷ 1.017 ÷ (1 – 1.017^–20) = 54027.02337

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Tutorial 4.28 Compute the present value of a deferred annuity.

Recall that with an ordinary annuity, payments (withdrawals) are made at the end of the payment period.
With an annuity due, payments (withdrawals) are made at the beginning of the payment period. A
deferred annuity is an annuity where the first payment is not made at the end or the beginning of the
first possible period but is postponed for a length of time.
The present value of a deferred annuity is the amount invested today in an annuity account at a specified
interest rate so that future equal withdrawals (payments) can be made based on the original principal and
all of the accumulated interest. The idea here is that these equal withdrawals (payments) will completely
exhaust the accumulated amount at the end of the annuity. So, if we know the approximate amount of
equal withdrawals (payments) needed, we can use the formula below to determine the present value
needed to fund the desired annuity plan.
 1 - 1 + i -n 
( ) 
Present Value of a Deferred
= Annuity: A( n , k ) R  (1 + i )-k
 i 
 

R = amount (dollars) withdrawn
(years) = (m)(t)
k = number of periods to be deferred

A(n, k) = R * (1 – (1 + i)^–n) * ((1 + i)^–k) ÷ i
example 4.28a The terms of a single parent’s last will & testament indicate that a niece will receive
an annuity of $50,000 per year from age 18 to age 24 (so the niece can attend college)
and that the balance of the estate goes to a daughter. If the single parent dies on the
niece’s 14th birthday, how much money (to the nearest dollar) must be removed from
the estate to purchase the annuity? (Assume an interest rate of 6%, compounded
annually.)
R = 2,000,000 r = 6% = 0.06 m = 1 (annually)
292
2. Use the values for r and m to determine the appropriate value for i…
r 0.06
i =
= = 0.06
m 1
3. Determine the value of n by deciding the total number of payment periods…
according to problem: will receive an annuity per year from age 18 to age 24
ages 17–18, 18–19, 19–20, 20–21, 21–22, 22–23, 23–24→ n = 7
4. Determine the value of k by deciding the total number of deferred periods…
according to problem: single parent dies on the niece’s 14th birthday
will not receive: ages 14–15, 15–16, 16–17 → k = 3
5. Using the known values, evaluate the adjusted formula for A(n, k)…
1- (1 + i )-n  1- (1.06 )-7 
= A( n , k ) R  =  (1 + i ) - k 50,000  =  (1.06)-3 234353.7551 ≈ $234,354
 i   0.06 
   

A(n, k) = 50,000 * (1 – 1.06^–7) * (1.06^–3) ÷ 0.06 = 234353.7551
example 4.28b Find the present value (to the nearest dollar) of an annuity of $2500, at the end of
each quarter for 8 years after being deferred for 7 years, if the money is worth an
annual rate of 8.4% compounded quarterly.
R = 2500 r = 8.4% = 0.084 m = 4 (quarterly) t = 8
r 0.084
i
= = = 0.021 n = (m)(t) = (4)(8) = 32 k = (4)(7) = 28
m 4
1- (1 + i )-n  1- 1.021)-32 

=A( n , k ) R  =  (1 + i )-k 2500  (  (1.021)-28 = 32315.48493
 i   0.021 
   
present value of this deferred annuity ≈ $32,315

graphing calculator solution: A(n, k) = 2500 * (1 – 1.021^–32) * (1.021^–28) ÷ 0.021 = 32315.48493
293
Tutorial 4.29 Compute the payments for a specified present value for a deferred
annuity.
Occasionally, we might know the present value amount needed for a deferred annuity along with the
interest rate, the number of compounding periods per year, the total number of compounding periods
for the life of the annuity and the number of periods that will be deferred…but…we do not know the
payment (withdrawal) amount that will be possible from the accumulated principal and interest of the
established deferred annuity. When this happens, we need to work backwards to determine the desired
payment (withdrawal) amount.
Recall that the present value of a deferred annuity can be determined by the formula in the first box
below. We can adapt this formula to solve for the payment (withdrawal) amount (R) by performing some
simple algebraic steps as shown in the second box below.
 1 - 1 + i -n 
( ) 
Present Value of a Deferred
= Annuity: A( n , k ) R  (1 + i )-k
 i 
 

R = amount (dollars) withdrawn
(years) = (m)(t)
k = number of periods to be deferred
 1 - 1 + i -n 
( ) 
 1 - 1 + i -n 
( ) 
÷ (1 + i )-k=
( A )(i)
(1 + i )-k → R
= A( n , k ) ÷ 
( n,k )
=A( n , k ) R 


i 



i 
 ( (1 + i )-k )  1 - (1 + i )-n 

R = A(n, k) * i ÷ ((1 + i)^–k) ÷ (1 – (1 + i)^–n)
example 4.29a Jack Henderson’s grandparents invested $25,000 when he was born. This money
is to be used for Jack’s college education and is to be withdrawn in 4 equal annual
payments beginning when Jack is age 19. Find the amount (to the nearest dollar)
that will be available each year if money is worth 6%, compounded annually.
A(n, k) = 25,000 r = 6% = 0.06 m = 1 (annually)
294
2. Use the values for r and m to determine the appropriate value for i…
r 0.06
i =
= = 0.06
m 1
3. Determine the value of n by deciding the total number of payment periods…
according to the problem: to be withdrawn in 4 equal annual payments → n = 4
4. Determine the value of k by deciding the total number of deferred periods…
according to the problem: payments beginning when Jackson is age 19
will not receive: ages 0–1, 1–2, 2–3, 3–4, 4–5, 5–6, 6–7, 7–8, 8–9, 9–10, 10–11,
11–12, 12–13, 13–14, 14–15, 15–16, 16–17, 17–18→ k = 18
=R =
( A( n,k ) ) ( i ) =
( 25,000 )( 0.06 ) 20593.4499 ≈ $20,593
( )(
(1 + i )-k 1- (1 + i )-n) ( )( )
1.06-18 1- (1.06 )-4
graphing calculator solution: R = 25,000 * 0.06 ÷ (1.06^–18) ÷ (1 – (1.06^–4)) = 20593.4499
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example 4.29b Carolyn received a trust fund inheritance of $75,000 on her 20th birthday. She plans
to use the money to supplement her income with 24 quarterly payments beginning
on her 50th birthday. If the money is worth an annual rate of 8% (compounded
quarterly), how much will each quarterly payment be?
r 0.08
A(n, k) = 75,000 r = 8% = 0.08 m = 4 (quarterly) → =
i = = 0.02
m 4
according to problem: 24 quarterly payments → n = 24

will not receive quarterly payments for ages shown below → k = 119
(see the table of values that follows)
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ± Ć ±
Ć ± Ć ± Ć ± Ć ±

=R =
( A( n,k ) ) ( i ) =
( 75,000 )( 0.02 ) 41850.43983 ≈ $41,850
( )(
(1 + i )-k 1- (1 + i )-n ) (
(1.02−119 ) 1- (1.02 )−24 )
graphing calculator solution: R = 75,000 * 0.02 ÷ (1.02^–119) ÷ (1 – (1.02^–24)) = 41850.43983
296
Tutorial 4.30 Find the regular payments to amortize a debt.

Most people purchase large-ticket items through installment loans. The process of repaying such a loan
is called amortization. We can determine the regular payments for an amortized debt through the use
of the formula below:
 
i
Amortization Formula: R = An  
 1 - 1 + i -n 
 ( ) 
where: R = size of each regular payment (in dollars)

An = amount of debt (in dollars)
n = total number of equal periodic payments = (compounding periods per year)
(years) = (m)(t)

R = An * i ÷ (1 – (1 + i)^–n)
example 4.30a A debt of $50,000 is to be amortized by equal payments at the end of each year for
5 years. If the interest charged is 8% (compounded annually), find the periodic
payment (to the nearest dollar).
An = 50,000 r = 8% = 0.08 m = 1 (annually) t = 5
2. Use the values for r, m and t to determine the appropriate value for i and n…
r 0.08
i
= = = 0.08 n = (m)(t) = (1)(5) = 5
m 1
3. Using the known values, evaluate the formula for R…
   
 i   0.08 
= R A= 50,000
= 12522.82273
1- (1 + i )-n  1- (1.08 )-5 
n
   
regular amortization payment ≈ $12,523

297
example 4.30b A debt of $20,000 is to be amortized with 8 equal semiannual payments. If the interest
rate is 10% (compounded semi-annually), what is the size of each payment (to the
nearest dollar)?
An = 20,000 r = 10% = 0.10 m = 2 (semi-annually) t = 4
r 0.10
i
= = = 0.05 n = (m)(t) = (2)(4) = 8
m 2
   
 i   0.05 
=R A= 20,000
= 3094.436273
1- (1 + i )-n  1- (1.05 )-8 
n
   
regular amortization payment ≈ $3094

Tutorial 4.31 Find the amount that can be borrowed for a specified payment.
When we attempt to live within a preset budget, we might need to determine how much of a repayment
amount we can afford before purchasing a large-ticket item that needs to be amortized. Therefore, we
might need to use the amortization formula to solve for the amount of the debt…which means that we
need to work the formula backwards. The first box below is the amortization formula while the second
box is the adjusted formula after applying some simple algebraic steps.
 
i
Amortization Formula: R = An  
 1 - 1 + i -n 
 ( ) 
where: R = size of each regular payment (in dollars)

An = amount of debt (in dollars)
i = interest rate per period (as a decimal) = nominal annual rate as a decimal = r
n = t otal number of equal periodic payments = (compounding periods per
year)(years) = (m)(t)

R = An 
i

 A =

R÷
i =
(
 R 1 − (1 + i )− n )
 1 - 1 + i -n  n
 1 - 1 + i -n  i
 ( ) →  ( ) 

An = R * (1 – (1 + i)^–n) ÷ i
example 4.31a A developer wants to buy a certain parcel of land. The developer feels she can afford
payments of $30,000 each half-year for the next 10 years. How much can she borrow
(to the nearest dollar) and hold to this budget at an annual rate of 8.5% compounded
semi-annually?
R = 30,000 r = 8.5% = 0.085 m = 2 (semi-annually) t = 10
r 0.085
i
= = = 0.0425 n = (m)(t) = (2)(10) = 20
m 2
= An =
(
R 1 − (1 + i )− n ) (
30,000 1 − (1.0425)−20
=
) 398830.9742 ≈ $398,831
i 0.0425
graphing calculator solution: An = 30,000 * (1 – 1.0425^–20) ÷ 0.0425 = 398830.9742
299
example 4.31b Monmouth Auto Repair wants to add a new service bay. How much can they
borrow (to the nearest dollar) at an annual rate of 5% (compounded quarterly)
if the desired quarterly payment is $5000? Assume a loan period of 5.5 years.
R = 5000 r = 5% = 0.05 m = 4 (quarterly) t = 5.5

r 0.05
=i = = 0.0125 n = (m)(t) = (4)(5.5) = 22
m 4
=An =
(
R 1 − (1 + i )− n ) (
5000 1 − (1.0125)−22
=
) 95652.81466
i 0.0125
amount of affordable debt ≈ $95,653
graphing calculator solution: An = 5000 * (1 – 1.0125^–22) ÷ 0.0125 = 95652.81455
300
Tutorial 4.32 Find the unpaid balance of a loan.

There may be times when we have purchased a home (vehicle) through an amortization process and are
still paying the loan off when we decide that we would like to purchase a different home (vehicle). Before
we can make the new purchase, we have to determine the unpaid balance (amount still remaining on
the loan) so that we can make arrangements for the repayment of the old loan. We can calculate this
unpaid balance by using the formula below.
 -( n - k ) 
 1 - (1 + i ) 
Unpaid Balance Formula: An- k = R 
 i 
 
where: An-k = unpaid balance (in dollars)

R = size of each periodic payment (in dollars)
n = total number of equal periodic payments = (compounding periods per year)
(years) = (m)(t)
k = number of equal payments paid
n – k = number of remaining payments

An–k = R * (1 – (1 + i)^–(n – k)) ÷ i
example 4.32a A loan is to be amortized for 10 years with quarterly payments of $1709.74 each. If
the interest rate is 6.5% (compounded quarterly), what is the unpaid balance (to the
nearest dollar) immediately after the tenth payment?
R = 1709.74 r = 6.5% = 0.065 m = 4 (quarterly) t = 10 k = 10
r 0.065
i
= = = 0.01625 n = (m)(t) = (4)(10) = 40
m 4
 -(n - k )   -(40 -10) 

1- (1 + i )  1- (1.01625 ) 
=An -k R=
  1709.74  =  40342.3717 ≈ $40,342
 i   0.01625 
   
301

An–k = 1709.74 * (1 – 1.01625^–(40 – 10)) ÷ 0.01625 = 40342.3717
example 4.32b A 42-month auto loan has monthly payments of $488.61 each. If the interest rate
is 7.5% (compounded monthly), find the unpaid balance (to the nearest dollar)
immediately after the 28th payment.
R = 488.61 r = 7.5% = 0.075 m = 12 (monthly) t = 42 ÷ 12 = 3.5 k = 28
r 0.075
i
= = = 0.00625 n = (m)(t) = (12)(3.5) = 42
m 12
 -(n - k )   -(42 - 28) 

1- (1 + i )  1- (1.00625 ) 
=An -k R=
  488.61  =  6530.300386 ≈ $6530
 i   0.00625 
   
graphing calculator solution: An–k = 488.61 * (1 – 1.00625^–(42 – 28)) ÷ 0.00625 = 6530.300386
302
Quantitative Analysis About the Author
5 About the Author

I received my BS degree from Trenton State College (now known as the College of New Jersey, Ewing
Township, New Jersey 08618, USA) in 1973. From February 1977 to the end of June 2003, I worked as a full
time mathematics teacher at Point Pleasant Borough High School (Point Pleasant, New Jersey 08742, USA).
Throughout my years at this school, I taught several courses offered through the mathematics department:
Algebra 1, Algebra 2, Algebra 2 Honors, Basic Skills Math, Computer Programming (BASIC), Computer
Programming (QBASIC), Discrete Mathematics, Geometry, Geometry Honors, SAT Preparation.
I received my MA degree from Georgian Court College (now known as Georgian Court University,
Lakewood, New Jersey 08701) in 1983 after following the Supervision & Curriculum Graduate Program.
I taught at Monmouth University (West Long Branch, New Jersey 07764, USA) as an adjunct professor
(through the Mathematics Department) during three semesters (SP98, SP99, FA98) while still working
full-time at Point Pleasant Borough High School. Due to a conflict with my full-time teaching position,
I declined any adjunct teaching duties until several years later.
After teaching secondary mathematics for more than 25 years, I retired from the Point Pleasant Borough
School district at the end of June 2003. After taking some time off, I discovered that I was still in love
with teaching mathematics. So, I asked to return to the list of adjunct professors at Monmouth University.
I returned to Monmouth University in September 2004. During my time at Monmouth, I have taught
several courses offered through the University’s Mathematics Department:
• MA050 – Pre-Algebra Math

• MA100 – Quantitative Reasoning & Problem Solving
• MA101 – College Algebra
• MA105 – Mathematical Modeling in the Social Sciences
• MA117 – Quantitative Analysis for Business I
• MA203 – Foundations of Elementary Mathematics I
• MA204 – Foundations of Elementary Mathematics II
Always looking to expand my academic achievements, I agreed to compose an e-book for Bookboon.
com during the latter part of 2012…the result being this tutorial e-book entitled Quantitative Analysis –
Algebra with a Business Perspective.
Donna M. Wacha
dwacha@monmouth.edu
303

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Quantitative Analysis

Algebra with a Business Perspective

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1  Equations, Inequalities & Linear Programming 12

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© Deloitte & Touche LLP and affiliated entities.

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Discover the truth

© Deloitte & Touche LLP and affiliated entities.

We will turn your CV into

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2 Matrices & Array Operations 110

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3 Quadratic & Other Special Functions 175

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• explanation of how the textbook is organized…

• description of whom I believe might be interested in using these tutorials…

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1 Equations, Inequalities & Linear

1. What value do we wish to address?

example 1.1a Solve for the variable: x + 5 = 12

example 1.1b Solve for the variable: x ‒ 7 = 18

example 1.1c Solve for the variable: 8x = 72

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example 1.1d Solve for the variable: x ÷ 6 = 8

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Tutorial 1.2 Solve two-step equations in one variable.

example 1.2a Solve for the variable: 2x + 5 = 17

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example 1.2b Solve for the variable: 3x ‒ 7 = 26

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Tutorial 1.3 Solve multi-step equations involving like-terms.

example 1.3a Solve for the variable: 3x + 5 + 5x – 9 = 12

example 1.3b Solve for the variable: 4x – 3 – 7x + 3 = 12

4x – 3 – 7x + 3 = 12 → (4x – 7x) + (–3 + 3) = 12 → –3x + 0 = 12 →

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example 1.3c Solve for the variable: 2x – 6 + 3x + 8 = –33

2x – 6 + 3x + 8 = –33 → (2x + 3x) + (–6 + 8) = –33 → 5x + 2 = –33 →

In the given equation, 2x and 3x are considered like-terms as are –6 and 8.

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Tutorial 1.4 Solve multi-step equations involving parentheses.

Distributive Property over Addition: Distributive Property over Subtraction:

example 1.4a Solve for the variable: 5(3x – 8) = –70

5(3x – 8) = –70 → 5(3x) + 5(–8) = –70 → 15x – 40 = –70 →

example 1.4b Solve for the variable: –7(4x – 8) = 140

–7(4x – 8) = 140 → (–7)(4x) + (–7)( –8) = 140 → –28x + 56 = 140 →

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example 1.4c Solve for the variable: 10x – 3(8 – 5x) = 26

10x – 3(8 – 5x) = 26 → 10x + (–3)(8) + (–3)( –5x) = 26 → 10x – 24 + 15x = 26 →

Excellent Economics and Business programmes at:

“The perfect start

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1 Equations, Inequalities & Linear Programming 12

3 Quadratic & Other Special Functions 175

1 Equations, Inequalities & Linear

1. Plot point P = (–4, –2) by moving 4 units to the left of

the origin (0, 0) and then 2 units down. Make a mark

1. Plot point P = (–6, +4) by moving 6 units to the left of

2. Plot point Q = (+6, –2) by moving 6 units to the right of

1. Plot point P = (–4, 0) by moving 4 units to the left of

on the left-hand portion of the horizontal axis.)

1. Plot point P = (0, +4) by not moving horizontally from

located on the upper portion of the vertical axis.)

1. Determine the x-intercept by replacing the y in the given

equation with zero (0) and solving the equation for x:

2. Plot the calculated x-intercept on the coordinate grid by