QMS 110 Class Notes

September 5, 2022

This document is the QMS 110 class notes during fall 2022 semester at Toronto Metropolitan University. We
will be following the textbook: Contemporary Business Mathematics with Applications for Ryerson University. This
note is provided by: Dr. Arash Islami.

1
Contents

Contents 2

1 Basic Arithmetic 3
1.1 Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.1.1 Numbers and the Language of Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.1.2 Absolute Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.3 Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.4 Equalities and Inequalities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.1.5 Reciprocal Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2 Basic of Arithmetic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.2.1 Order of Operations (BEDMAS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.3 Fractions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.3.1 Adding and Subtracting Rational Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.3.2 Lowest Common Denominator (LCD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.3.3 Converting Mixed Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3.4 Multiplying Rational Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.3.5 Dividing Rational Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.3.6 Rounding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.4 Fundamental Operations of Algebra . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.5 Simplest Radical Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.6 Addition and Subtraction of Radicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.7 Multiplication and Division of Radicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.7.1 Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2
1 Basic Arithmetic

1.1 Numbers
1.1.1 Numbers and the Language of Sets

Set Notation

In mathematics a set is a collection of elements. The following are important notation in mathematical sets.

1. Given a set S the notation x ∈ S means x is an element of set S.

2. Given a set S the notation x ∈

/ S means x is not an element of set S.

3. The set-roster notation is to write the elements of set between braces. For example S = {1, 2, 3}.

4. If a set is large three dots can be used for a compact notation. For example A = {1, 2, 3, . . . , 100}.

5. To describe an infinite set the three dots can be used. For example B = {1, 2, 3, . . .}.

Set-Builder Notation

Given a set S and a property P (x), define a new set of all elements of x in S such that the property P (x) is true.
This is denoted by
{x ∈ S | P (x)}

Example 1.1. Describe each of the following sets.

1. {x ∈ R | − 2 < x < 4}

2. {x ∈ Z | − 2 ! x < 4}

3. {x ∈ Z+ | − 2 < x ! 4}

The Set of Real Numbers, Integers and National Numbers

The following is the list of notation of most commonly used sets in mathematics.

• R: the set of real numbers.

• R+ : the set of positive real number.

• Z: the set of integers is Z = {. . . , −3, −2, −1, 0, 1, 2, 3, . . .}.

• N: the set of natural numbers is N = {1, 2, 3, . . .} (also called positive integers Z+ )

• Znonneg : the set of nonnegative integers is Znonneg = {0, 1, 2, 3, . . .}.

a
• Q: the set of rational numbers, that is Q = { |a, b ∈ Z, b #= 0}.
b

3
Remark 1.2. Important notes:

• The number zero, 0, is neither positive nor negative.

• The real number line is said to be continuous as there are no holes.

• The set of integers is said to be a discrete set as they are separated from each other.

Relations among Sets of Numbers

The relationship between sets of numbers Z, Q and R can be represented by Venn Diagrams.

Example 1.3. Given the following numbers, identify types of numbers: natural number, integer, rational number,
and irrational number.

• 7

• -6

7
•
13

1
• = 0.3
3
√
• 7

√
3
•
2
• π

• 3π − 1

• e

4
1.1.2 Absolute Value

The absolute value of a number is the number in its positive form. It is defined by

 x if x ≥ 0
|x| =
 −x if x < 0

Exercise 1.4. Find the following absolute values.

• |6|

• |−6|

√
• |− 5|

• − | −2 |

• − |π|

• −2 − | − 5 |

1.1.3 Variables

A variable is a number whose value is not known. Normally a letter such as x, y, a, t, . . . is assigned to a variable.
The degree of an algebraic expression is the largest power of the variables of the terms.

Example 1.5. Find the variables in the following expression and find the degree of the expression.

E(x, y, z) = x3 y 4 + 5x3 y 4 z 2 − 7zy 2

1.1.4 Equalities and Inequalities

The real number line can provide a visual tool to compare numbers. In order to show this comparison, there are
three signs we will use.

12
1. Equality sign indicates that the two values on the left and right are equal. For example = 2.
6

2. Greater than sign shows that the value on the left is greater than the value on the right. For example 4 > −3.

3. Less than sign shows that the value on the left is less than the value on the right. For example −10 < −7.

5
1.1.5 Reciprocal Values
1
Reciprocal of a number x is given by . If a number is multiplied by its reciprocal the result is equal to 1.
x
1 1
Example 1.6. Reciprocal of -4 is and −4 · =1
−4 −4

3 5 3 5
Example 1.7. Reciprocal of is and · = 1
5 3 5 3

1.2 Basic of Arithmetic

Adding Real Numbers

When we add two numbers the result of adding is called their sum. For example: 5 + 1.87 = 6.87

Subtracting Real Numbers

Given two real numbers a and b we have

a − b = a + (−b)

For example: 5 − 8 = 5 + (−8) = −3

Number 0

If 0 is divided by a nonzero number, the quotient is 0, i.e.

0
=0 for a #= 0
a

Remark 1.8. Division by 0 is undefined !

1.2.1 Order of Operations (BEDMAS)

In order to perform mathematical operations consistently, we will follow the order of operations.
1. B: Perform all operations inside a bracket first.

2. E: Perform exponents.

3. DM: Perform multiplication and division in the order as they appear from the left to right.

4. AS: Perform addition and subtraction in order as they appear from left to right.

Example 1.9. Perform the following operation.

• 6 · 22 + 5 − 4(1 + 2)

• 36÷ (32 × 2) + 3

6
1.3 Fractions
Lowest Terms

A rational number is said to be in lowest terms if the greatest common factor of the numerator (top number) and
the denominator (bottom number) is 1.

32
Example 1.10. Write in lowest terms.
36

Common Fractions

A common fraction is used to show a part of the whole. A proper fraction has the numerator that is less than the
denominator. An improper fraction has a numerator that is greater than the denominator.

Example 1.11. Indicate the proper fraction and the improper fraction in the following.

5
•
7

6
•
4

Equivalent Fractions

Equivalent fractions can be obtained by changing or simplifying the term of a fraction while not changing its value.

Remark 1.12. Given a, b to be integers, where b #= 0 and k #= 0 we have

a·k a
=
b·k b

Remark 1.13. Given a, b, c, d to be integers, where b, d #= 0 then

a c
= if and only if a·d=b·c
b d

Example 1.14. Find the value of x in the following.

2 x
=
3 6

7
1.3.1 Adding and Subtracting Rational Numbers

Given a, b, c, d to be integers, where b, d #= 0 then

a c ad + bc
+ =
b d bd
and
a c ad − bc
− =
b d bd

1.3.2 Lowest Common Denominator (LCD)

The lowest common denominator of two or more fractions is the lowest common factor or multiple of their denom-
inator. The LCD can help us to add or subtract fractions. This is equivalent to least common multiple (LCM) of
the denominators.

Example 1.15. Determine the LCD of the given fractions.

4 7 5
, ,
5 9 6

Example 1.16. Perform the following operation.

4 2
• +
9 15

4 2
• −
9 15

Converting Common Fraction into Decimal Form

A common fraction can be converted to a decimal form by dividing the numerator into the denominator. If a decimal
digit repeats, we place a dot or a dash line above that digit.

Example 1.17. Convert the following common fractions to decimals.

1
•
3

7
•
6

8
1.3.3 Converting Mixed Numbers

A mixed number is made of a whole number and a fraction. It can be represented by the sum of the whole number
and the fraction. This in turn can be presented in decimal form.

Example 1.18. Convert the mixed fractions to a fraction

3
• 5
4

1
• 7
4

Example 1.19. Convert the fractions to a mixed number.

23
•
4

29
•
4

1.3.4 Multiplying Rational Numbers

Given a, b, c, d to be integers, where b, d #= 0 then

a c a·c
· =
b d b·d

Example 1.20. Find the product

5 3
·
9 10

9
Definition of Division

Given a, b to be real numbers , where b #= 0 then

a 1
=a·
b b

1.3.5 Dividing Rational Numbers

Given a, b, c, d to be integers, where b, d #= 0 then

a c a d ad
÷ = · =
b d b c bc

Example 1.21. Find the quotient

2 5
÷
9 6

1.3.6 Rounding

When solving a problem, in most cases after calculations we need to round our decimal places. Specifically, in
business and economy questions, we need to round the money amount in Dollars to nearest cent. In order to do
this,

• if the first digit in the group that is to be dropped is the digits 5, 6, 7, 8, 9, the last digit retained is increased
by 1,

• if the first digit in the group that is to be dropped in the digits 0, 1, 2, 3, 4 the last digit retained remains
unchanged.

Example 1.22. Round each of the following money values to the nearest cent.

• 7.274

• 7.278

• 9.9834

• 9.9878

• 1.995

10
1.4 Fundamental Operations of Algebra
We will demonstrate this section by some examples.

Example 1.23. Evaluate the following expressions.

−6(20 − 10)
1.
−3

7−7
2.
2−5

7−7
3.
7−7

4
4.
−2 + 2

1.5 Simplest Radical Form

The following are some rules in operations with radicals.

√ √ n
1. n
an = ( n a) = a

√ √ √
2. n
a n b = n ab

$√ √
3. m n
a= mn
a

√
n
%
a a
4. √
n
= n
where b #= 0
b b

Removing perfect nth-power factors

Example 1.24. Simplify the following.

√
1. 75

√
2. a3 b 2

11
Reducing the order of a radical using fractional exponents

Example 1.25. Simplify the following.

√
1. 6
8

$
2. 4
16x8 y 4

Example 1.26. Rationalize the denominator.

5
√
2

1.6 Addition and Subtraction of Radicals

Similar radicals can be added or subtracted. Radicals are similar if they only differ by their coefficient values. We
will present the following examples.

Example 1.27. Simplify the following.

√ √
1. − 2 + 3 2

√ √ √ √
2. 6−2 6+7 3+ 3

√
Remark 1.28. Given n
x we have two cases in real numbers:

1. if n is even, then x ≥ 0.

2. if n is odd, then x can be of any value.

Example 1.29. We have

√
1. 4=2

√
2. −4 undefined in real numbers R

√
3. 3
8=2

√
4. 3
−8 = −2

12
 √
Remark 1.30. In real numbers the value of x for x < 0 is undefined, therefore we have complex numbers, denoted
√
by C, so that value of x for x < 0 is defined.

√ √
Example 1.31. For example −2 is not in real numbers but −2 is in the set of complex numbers.

1.7 Multiplication and Division of Radicals

√ √ √
The product of two radicals can be combined only if the orders are the same, that is n
a n b = n ab.

Example 1.32. Simplify.

√ √
1. 3 2

&√ √ ' &√ √ '

2. 3− 2 3+ 2

Example 1.33. Rationalize the denominator.

1
√ √
3− 2

13
1.7.1 Exercises

Exercise 1.34. Perform the following operations.

• 27 ÷(2×32)−3

& '
• -5(-2) + 42 ÷ (−2) – (-7)

Exercise 1.35. Find the value of x in the following.

5 40
=
2x 48

Exercise 1.36. Perform the following operations and simplify to lowest terms

15 5
• ÷
8 16

5 3
• ·
9 10

3 7
• −
8 6

Exercise 1.37. A carpenter has a board 72 cm long that he must cut unto 10 pieces of equal length. This will
require 9 cuts.
3
1. If each cut causes a waste of cm, how many centimeters of actual board will remain after the cuts?
16
2. What will the length of each of the resulting pieces be?

14
Exercise 1.38. Simplify the following.

√
1. 72

√
2. 3
40

√
Exercise 1.39. Simplify a2 + 2ab + b2

Exercise 1.40. Rationalize the denominator.

√
2 x
1. √ √
6+ x

1
2. √ √
5− 2

%
2
3. 3

Exercise 1.41. Simplify the following.

√ √
1. 2+ 8

%
√ 3
2. 24 +
2

√ √
3. 3
−16 + 3
54

15
Exercise 1.42. Simplify.

& √ '2
1. 3 5

&√ √ '2
2. 3+ 2

Exercise 1.43. Evaluate the following absolute value.

|−1| − |π − 4 |

Exercise 1.44. Perform the following operation.

( )
& 3 ' 63
4 ÷ (−2) − 5(−3)+
9

Exercise 1.45. Simplify the following.

√
3
√
3
√ √
27 + −8 + 2+ 8

Exercise 1.46. Simplify the following.

√
4
81a12 b8

16
1.8 Real Numbers (Class 2)
• Real Numbers: the integers, the rational numbers, and the irrational numbers, including all such numbers
that are positive, negative, or zero, make up the real number system. All real numbers can be represented
along a single number line. It is denoted by R.
22 18
Example 1.47. Round + to the nearest integer.
7 19

1.9 Simplifying Expressions with Integral Exponents

The following are the laws of exponents.

1. am · an = am+n

am
2. = am−n where a != 0
an

3. (am )n = amn

4. (ab)n = an bn
! a "n an
5. = where b != 0
b bn

6. a0 = 1 where a != 0

1
7. a−n = where a != 0
an

Example 1.48. Simplify.

27
1.
23

w 2
2. ( )
z

3. x−2

5
4. ( )−1
2

5
5. ( )−2
2

Example 1.49. Simplify and write with positive exponents.

x−7
1.
x−3

3x−2 −4
2. ( )
4x−3

17
1.10 Fractional Exponents
The following two rules defines the fractional exponents in radical forms.

√
1. a n =
1
n
a

√ √ m
2. a n =
m n
am = ( n a)

Example 1.50. Find the roots, if they are real numbers

√
1. 16

√
2. − 25

3. (−8) 3
1

4. 8 3
1

5. 4 2
1

6. (−4) 2
1

Example 1.51. Evaluate.

1. 90

2. 2−3

3. 27 3
2

4. 16− 4
3

Example 1.52. Simplify the following expressions.

1. (2x 2 )(3x− 2 )(4x 2 )

5 3 1

2. (a4 b3 c−2 )− 12
1

!
3. ( 4 16x8 y 4 )

18
1.11 Ratio, Proportion and Percent
Ratio, Proportion and Percent

• The ratio of a number a to a number b (where b != 0) can be written as

a
a:b or
b
a c
• Given the proportion = the cross product of this proportion is ad = bc.
b d

x 8
Example 1.53. Solve the equation =
36 24

1.11.1 Percentage

Example 1.54. Determine that 180 is what percent of 450?

Example 1.55. What is the amount of June sale if July sales of $15,870 were 115% of June sales?

Example 1.56. The 15% blended sales tax charged on the regular selling price of a computer sold amounted to
$189.00. What was the total cost of the computer?

19
Example 1.57. What percent increase did Tom receive if his bi-weekly salary rose from $2,200 to $2,508?

Example 1.58. A book price at a bookstore is marked $29.95 and is subject to 13% HST. What will it cost you to
buy this book?

2
Example 1.59. If the total deduction on a yearly salary $55,800 amounted to 16 %, how much was deducted?
3

20
1.12 Ratios
A ratio is a comparison of the relative values of numbers or quantities. The ratio of a number a to a number b
(where b != 0) can be written as

a
a:b or
b

Example 1.60. Reduce the following ratios.

• 80 : 35

• 81 : 54 : 27

Remark 1.61. Equivalent ratios in higher terms van be obtained by multiplying each term of a ratio by a number.
We can eliminate decimals and fractions in this fashion.

Example 1.62. State the following ratios in higher terms to eliminate the decimals from the terms of the ratios.

• 2.5 : 3

Example 1.63. (Allocation Problem) A business suffered a fire loss of $224,640. It was covered by an insurance
1 3 5
policy that stated that any claim was to be paid by three insurance companies in the ratio : : . What is the
3 8 12
amount that each of the three companies will pay?

21
1.13 Proportions
3 9 a c
Two equal ratios is called a proportion. For example 2 : 5 = 4 : 10, = and = are all proportions. Given
2 6 b d
a c
the proportion = the cross product of this proportion is ad = bc.
b d
Example 1.64. Solve each of the following proportion.

x : 5 = 8 : 40

5 x
Example 1.65. Solve the proportion =
6 54

Example 1.66. Two contractors agreed to share revenue from a job in the ratio 2 : 3. Contractor A, who received
the smaller amount, made a profit of $480 on the job. If contractor A’s profit compared to revenue is in the ratio
3 : 8, determine

(i) contractor A’s revenue;

(ii) the total revenue of the job.

22
1.13.1 Exercises

x−1 x+1
Exercise 1.67. Solve the equation =
4 3

Exercise 1.68. Solve each of the following proportion.

5 14 21
: =x:
6 4 10

Exercise 1.69. What percent of $15 is $36?

Exercise 1.70. State the following ratios in higher terms to eliminate the decimals from the terms of the ratios.

• 1.25 : 3.75 : 7.5

4
• 3: :1
7

23
Exercise 1.71. An ad offered a product at a sale price of $266. The regular price was $380. What percent of
regular price was the savings?

Exercise 1.72. The trading price of shares of a company dropped 30% to $9.10. Determine the trading price before
the drop.

Exercise 1.73. The amount paid for an article, including 5% GST, was $101.85. How much was the marked price
of the article?

1
Exercise 1.74. Sales for this year are budgeted at 112 % of last year’s sales of $350,000. What is the sales budget
2
for this year?

24
Exercise 1.75. Simplify and write with positive exponents.

(a3 b4 )−4
a3 (2a−3 b)2

Exercise 1.76. (Allocation Problem) A business suffered a fire loss of $206,100. It was covered by an insurance
2 5 7
policy that stated that any claim was to be paid by three insurance companies in the ratio : : . What is the
3 8 12
amount that each of the three companies will pay?

Exercise 1.77. Simplify the following expressions.

√
3
# #
( 4x2 ) ( 3 16x4 y 3 ) ( 3 −8x3 y 9 )

Exercise 1.78. Material cost of a fan belt is ten-elevenths of total cost, and labour cost is two-sevenths of material
cost. If labour cost is $17, what is the total cost of the fan belt?

25
Exercise 1.79. Last year, net profits of a company were nine-nineteenths of revenue. If the company declared a
dividend of $14,853 and four-nineteenths of the net profit was retained in the company, what was last year’s revenue?

Exercise 1.80. In a recent poll, 580 of 1245 adults felt the amount of federal income tax they paid is too high. To
the nearest whole percent, what percent of adults felt the amount of federal income tax they paid is too high?

Exercise 1.81. A family has a monthly income of $3100 and plans to spend 10% of this amount on entertainment.
How much will be spent on entertainment?

Exercise 1.82. As of February 2007, households in a certain country owned 352,100,000 pets. Of these, 75,400,000
were dogs. What percent of the pets were not dogs?

26
2 Basic Algebra (Class 3)

2.1 The Basic Percentage Problem

Remark 2.1. In Table 2.1 of the textbook (page 67) some examples of percentages of mixed fractions are calculated
that can be used when solving problems.

2
Example 2.2. If the total deduction on a yearly salary $55,800 amounted to 16 %, how much was deducted?
3

2.2 Problem Involving Percent

1
Example 2.3. Sales for this year are budgeted at 112 % of last year’s sales of $350,000. What is the sales budget
2
for this year?

2.3 Addition and Subtraction of Algebraic Expressions

Example 2.4. Simplify the given algebraic expressions.

1. 2y − y + 5x − 3x + z

2. −(t − 2u) + (3u − t)

3. −2 [−x − 2a − (a − x)]

27
Example 2.5. Research on a plastic building material leads to the following expression

! " ! "
4 2 4 2
(B + α) + 2(B − α) − (B + α) − (B − α)
3 3 3 3

Simplify this expression.

2.4 Multiplication of Algebraic Expressions

Example 2.6. Perform the following multiplications.

1. (2xy)(x2 y 3 )

2. (x + 5)(2x − 1)

3. (2x − 5)2

Example 2.7. In using aircraft radar, given elements denoted by R and X, after computations an expression is
given by

(2R − X)2 − (R2 + X 2 )

Simplify this expression.

28
2.5 Special Product

Special Algebraic Products

• (x + y)2 = x2 + 2xy + y 2

• (x − y)2 = x2 − 2xy + y 2

• (x − y)(x + y) = x2 − y 2

• (ax − by)(ax + by) = (ax)2 − (by)2

Example 2.8. Find the product of the following.

1. (3x − 2)2

2. (x − 4)(x − 3)

3. (t − 3)(t + 3)

4. (x − y)(x + y)(x2 + y 2 )

Special Cube Products

• (x + y)3 = x3 + 3x2 y + 3xy 2 + y 3

• (x − y)3 = x3 − 3x2 y + 3xy 2 − y 3

• (x + y)(x2 − xy + y 2 ) = x3 + y 3

• (x − y)(x2 + xy + y 2 ) = x3 − y 3

Example 2.9. Find the products.

1. (x − 3)3

2. (x + 2)(x2 − 2x + 4)

29
2.6 Factoring
Greatest Common Factor (GCF) and Difference of Squares

Remark 2.10. The difference of squares formula is given by

x2 − y 2 = (x − y)(x + y)

Example 2.11. Factor the given expressions completely.

1. 3ab2 − 6ab + 12ab3

2. 90p3 − 15p2

3. x2 − 9

Example 2.12. Given (2x − 3k)(x + 1) = 2x2 − x − 3, solve for k.

Example 2.13. Factor x3 + 3x2 − 4x − 12 by grouping.

30
2.7 Factoring Trinomials
Given x2 + (a + b)x + ab we can factor this trinomial with leading coefficient 1 using the following

x2 + (a + b)x + ab = (x + a)(x + b)

Example 2.14. Factor the following trinomials.

1. x2 + 6x + 5

2. t2 − t − 56

Example 2.15. Factor the following general trinomials.

1. 4x2 + 4x − 3

2. 3x2 − 5x − 2

Example 2.16. A yard was planned to be in square shape with a given width of w. After property lines and
sidewalks were added, the final area of usable space can be represented by the equation w2 − 11w + 28 (in m2 ). By
how much were the width and the length of the yard is altered?

31
2.8 The Sum and Difference of Cubes
The following formulas allows us to factor the sum and difference of cubes. They are

x3 + y 3 = (x + y)(x2 − xy + y 2 )

x3 − y 3 = (x − y)(x2 + xy + y 2 )

Example 2.17. Factor the following expressions.

1. x3 + 8

2. t3 + 1

3. 27a3 − 8b3

p(x)
Rational Expressions
q(x)

Example 2.18. Simplify the following rational expression by factoring.

x3 − 216
x−6

Example 2.19. Multiply the following rational expressions.

5x − 15 10x + 30
·
3x + 9 6x − 18

32
2.8.1 Exercises

Example 2.20. The direct material cost of manufacturing a product is $103.95, direct labour cost is $46.20, and
overhead is $57.75. What is the overhead percent rate based on direct labour?

1
Example 2.21. Labour content in the production of an article is 83 % of total cost. How much is the labour cost
3
if the total cost is $558?

Example 2.22. A property owner listed his property for 160% more than he paid for it. The owner eventually
1
accepted an offer 12 % below his asking price and sold the property for $191,100. How much did the owner pay for
2
the property?

Example 2.23. After real estate fees of 8% had been deducted from the proceeds of a property sale, the vendor of
the property received $59,250. What was the amount of the real estate fee?

1
Example 2.24. The annual interest on a bond is 3 % of its face value and amounts to $260. What is the face
2
value of the bond?

33
Example 2.25. Write the following as an algebraic expression. Then simplify. The total amount of money (in
cents) of x nickels and (x+9) dimes. (The value of a nickel is 5 cents and the value of a dime is 10 cents.)

1
Example 2.26. The kinetic energy of an object of mass m traveling at velocity v is given by mv 2 . Suppose a car
2
of mass mo equipped with a crash-avoidance system automatically applies the brakes to avoid a collision and slows
from a velocity v1 to a velocity v2 . Find an expression, in factored form, for the difference between the original and
final kinetic energy.

Example 2.27. Solve for the indicated variable. The expression comes from the technical area indicated. i1 R1 =
(i2 − i1 )R2 , for i1 (electricity: ammeter)

Example 2.28. Given the expression that comes from the technical area indicated R = kT24 − kT14 , for k, solve for
the indicated variable and factor the resulting denominator.

Example 2.29. Given the expression from the technical area indicated. (h + 2t)3 − h3 , factor the given expression
completely.

Example 2.30. Divide and simplify the following.

12x2 + 7xy − 12y 2 9x2 − 24xy + 16y 2

2 2
÷
20x − 19xy + 3y 15x2 − 23xy + 4y 2

34
Example 2.31. Simplify the following.
# $
9x2 − 9x − 40 3x − 8 x2 − 9x + 18
÷ 3 ·
x2 + 8x x + 5x2 − 24x 3x2 − 4x − 15

Example 2.32. Simplify the following.

x−5 + y −4
x−4 + y −3

Exercise 2.33. Simplify the given algebraic expression.

1. −2 [−3(x − 2y) + 4y]

2. −2cs2 (−4cs)2

Example 2.34. Factor the given expressions completely.

1. x4 − 16

2. st + rt + sr + r2

3. 100 − 9a2

4. 3s3 − 81

5. s2 + 2s + 1

6. 9x2 − 6x + 1

35
3 Linear Functions and Equations

3.1 Rectangular Coordinates (Class 4)

Given order pair (x, y) we can plot the point P (x, y) on the Cartesian plane in x-axis and y-axis.

Example 3.1. Plot the given points on the rectangular coordinate system: A(2,7), B(-1.-2), C(-4,2).

Example 3.2. Plot all the points where:

1. the x−coordinates are 1.

2. the y−coordinates are -3.

3. the x−coordinates are equal to the y−coordinates.

4. x < −1

5. y ≥ 4

37
3.2 Relations and Functions
Relations

• A relation is any set of ordered pairs.

• Example: The set S = {(1, x), (2, y), (3, z)} represents a relation.

• For every relation defined by ordered pair (x, y), the set of all values of x is the domain and the set of all values
of y is the range of the relation.

Function

• A function is a relation that for any value of the first component there is only one value of second component.

• Given an independent variable x and a dependent variable y a function f is defined with a rule that maps an
element x in a set D (domain) to a single element y = f (x) in set E (range) .

Figure 3.1: Domain and Range of a Function

The graph of a function presents the points (x, y) of y = f (x) in the Cartesian coordinate plane where y coordinate
reads the values of function y = f (x). The domain is on the x coordinate and the range is on the y coordinate.

Figure 3.2: Graph and Domain and range of a Function

38
Example 3.3. Decide whether the following relation defines y as a function of x. State the domain.

1. y = x + 1

2. x = y 2 − 3

3
3. y =
x−2

3.3 Function Notation and Linear Functions

Given an independent variable x and a dependent variable y a function f is defined with a rule that maps x to y.
The function notation can be given by y = f (x).

Example 3.4. Given f (x) = −x2 + 4x + 1, find the following.

1. f (0)

2. f (−1)

3. f (t − 1)

1
4. f ( )
x

39
Linear Functions

We say that y = f (x) is a linear function if its graph is a line and the equation can be written by

y = f (x) = mx + b

where m is the slope of the line and b is the y-intercept.

Example 3.5. The graph of linear function y = 3x − 2 is presented below.

Figure 3.3: Graph of y = 3x − 2

3.4 Introduction to Functions

x3
Example 3.6. Given h(x) = , find h(4t2 ).
2x − 1

Example 3.7. Sales tax in a city is 7%. The price tag on an item shows D dollars. Express the total cost C of the
item as a function of D.

40
3.5 More about Functions (Intervals, Domain and Range)
The following are combination different types of open and closed sets in interval notation.

Figure 3.4: Intervals

Example 3.8. Given the graph of function f

Figure 3.5: Domain and range of f

1. Indicate value f (0).

2. Indicate value f (1).

3. Indicate value f (7).

4. Write the set of domain of f .

5. Write the set of range of f .

41
Example 3.9. Find the domain of the following functions.

1. f (x) = 3 − x2

√
2. g(x) = 3−x

√
3. s(x) = 3
3−x

Example 3.10. Find the domain of the functions

√
x−1
1. f (x) = .
x−2

√
x−1
2. h(x) =
x2 + 4x − 21

42
3.6 The Straight Line
Given a fixed point A(x1 , y1 ) on a line L and any arbitrary point P (x, y) on the line L, the slope is given by
y − y1
m= and the equation of the line may be written as any of the following forms:
x − x1

1. the point-slope form L : y − y1 = m(x − x1 )

2. the slope-intercept form L : y = mx + b

3. the standard form L : Ax + By + C = 0.

Example 3.11. Find the equation of the line that passes through P (−3, 8) with slope of 4.

Example 3.12. Find the equation of the line that that passes through A(1, 2) and is parallel to the line through
P (−1, 7) and Q(3, 1).

Example 3.13. Find k if the line 3x − y = 9 and kx + 3y = 5 are perpendicular.

43
Graphing Linear Equations

Example 3.14. Graph each of the following equations.

1. x + 2y = 4

2. y = −3x + 9

3. y = −2

4. x = 3

3.7 Solving Equations

Example 3.15. Solve the following equations.

1. 5 − (t + 2) = 5t

4x − 2(x − 4)
2. =8
3

3. |x| − 9 = 2

Example 3.16. The manufacturer of a certain car powered partly by gas and partly by batteries (a hybrid car)
claims it can go 2050 km on one full tank of 55 L. How far can the car go on 22 L?

44
3.7.1 Exercises

Exercise 3.17. An auto manufacturer estimates that its newest hybrid electric car will travel 288 highway kilometers
on one tank of gas. If the hybrid electric car’s gas tank holds 18 litres, how far can a driver expect to travel on 9
litres?

Exercise 3.18. The relationship between Celsius (°C) and Fahrenheit (°F) degrees of measuring temperature is
linear. Find a linear equation relating °C and °F if 0°C corresponds to 32°F and 15°C corresponds to 59°F.

Exercise 3.19. A motorist travels at 65 km/h for t hours. Express the distance d travelled as a function of t.

Exercise 3.20. A small bicycle manufacturer has daily fixed costs of $1915 and each bicycle costs $79 to manu-
facture. Let x represent the number of bicycles manufactured and C(x) represents the cost of manufacturing. Find
the value of x if C(x) = 2942.

45
4 System of Linear Equations and Inequalities

4.1 System of Linear Equations in Two Variables (Class 5)

4.1.1 Substitution Method

Example 4.1. Solve the following equations using substitution method.

2x + y = 6
1.
x−y = −3

3x − y = 7
2.
2x + 3y = 1

46
4.1.2 Elimination Method
3u − 2v = 12
1.
7u + 2v = 8

2x + 3y = 1
2.
3x − y = 7

47
4.2 Graphing Linear Equations
Example 4.2. Graph each of the following equations.

1. x + 2y = 4

2. y = −3x + 9

3. y = −2

4. x = 3

48
4.3 Graphing Linear System of Equation in Two Variables
Example 4.3. Solve each of the following linear systems graphically.

1. x+y =4 and x − y = −4

2. x = 2y − 1 and y = 4 − 3x

49
Example 4.4. Suppose that the supply and demand equations for printed T-shirts for a particular week are

p= 0.7q + 3 price-supply equation

p= −1.7q + 15 price-demand equation
where p is the price in dollars and q is the quantity in hundreds. Find Equilibrium price and quantity.

50
Example 4.5. A small plant manufactures riding lawn mowers. The plant has fixed costs of $48,000 per day and
variable costs of $1,400 per unit produced. The mowers are sold for $1,800 each. The cost and revenue equations
are

y= 48, 000 + 1, 400x cost equation

y= 1, 800x revenue equation
where x is the total number of mowers produced and sold each day. The daily costs and revenue are in dollars. How
many units must be manufactured and sold each day for the company to break even?

51
4.4 Algebraic Solution of System of Linear Equations
Example 4.6. Solve the following system of equations.

6x + 3y = 24
1.
2x + y = −8

6x + 3y = 24
2.
2x + y = 8

5x 3y
+ = −1
3. 6 8
2x 3y
− = −5
3 4

52
Example 4.7. Given the following system of equation find value of k which makes the system to have infinitely
many solutions

4kx − 9y = 27
20x + 15y = −45

Example 4.8. Given the following system of equation

12x − 54y = −18

−8x + 36y + 13 = 0

discuss if it has:

1. a unique solution, or

2. infinitely many solutions, or

3. it is inconsistent.

53
4.4.1 System of Linear equations in 3 variables

Example 4.9. Solve the following system of equation.

x + 2y + z = 8
1. −2x − 3y + z = −5
2x + 2y − 3z = −3

x + 6y + z = 6
2. −x + 7y + z = 7
2x − y = −1

x+y+z =9
3. 2x + 4y + 2z = 24
−x + 8y − 3z = 18

54
4.4.2 Exercises

Exercise 4.10. Let x be the number of units sold and P be the firm’s profit (in $). The firm determines the
following equation
8x − 2P = 2000

1. How many units must be sold in order for firm to generate a profit of $200?

2. Find the number of units when the firm breaks even.

Exercise 4.11. Given the following supply and demand functions

Demand : p = −5q + 450

Supply : p = 2q + 170

where p is the price and qis the quantity of a product. Find the market equilibrium point.

55
4.5 Solving Linear Inequalities (Class 6)
4.5.1 Inequalities and Interval Notation

Example 4.12. Write each inequality in interval notation using union or intersection and graph the solution intervals
(if there is a solution).

1. −5 ≤ x < −1 or x!4

2. x≤3 and 1<x<4

56
4.5.2 Inequalities and Absolute Values

Example 4.13. Solve the following inequality and graph the solution set

1. |4x − 3| ≥ 6

2. |x − 1| + 3 < 10

57
4.5.3 Solving Linear Inequalities

Example 4.14. Solve each inequality and write the solution set in interval notation.

1. 4x − (6x + 1) ≤ 8x + 2(x − 3)

1 2
2. (5x − 4) ≥ (x + 3)
3 5

3. −10 ≤ 3x − 1 < 5

58
4.5.4 Inequality Application

Example 4.15. A student has scores of 82, 94, 93 and 86 on four quizzes. What must he score on the fifth quiz to
have an average of at least 90?

Example 4.16. An international phone call costs $2.00 plus $0.30 per minute or fractional part of a minute. If x
represents the number of minutes of the length of the call, then 2 + 0.30x represents the cost of the call. If Jake has
$5.60 to spend on a call, what is the maximum total time he can use the phone?

59
4.5.5 Linear Programming

Problem 4.17. Write the system of linear inequalities corresponding to the area that is not shaded.

60
Example 4.18. Given the following linear program

min 2A + 2B
s.t. A + 3B ≤ 12
3A + B ≥ 13
A−B ≤3
A, B ≥ 0

1. Show the feasible region.

2. Find the extreme points of the feasible region.

3. Find the optimal solution using graphical solution procedure.

61
Example 4.19. A company produces a product that has two types: the manual model and the electric model. In
manufacturing this product two machines are used, namely machine A and machine B.

• Each manual model needs the use of machine A for 2 hours and machine B for 1 hour.

• The electric model needs the use of machine A for 1 hour and machine B for 2 hours.

• The maximum number of hours available per month for machine A and B are 90 and 60 respectively.

• The profit of the manual model is $2 and the electric model is $2.5.

If this manufacturing company needs to maximize the profit, determine how many of each type of this product must
produce?

62
5 Quadratic Functions and Equations

5.1 Quadratic equations: Solution by Factoring (Class 7)

Example 5.1. Solve the given quadratic equations by factoring.

1. 4x2 − 25 = 0

2. x2 − 5x = 14

3. 8t2 + 16t = 90

Example 5.2. Find three roots the equation

x3 − 4x2 − x + 4 = 0

Example 5.3. Solve the equation

1 3
2− =
x x+2

63
5.2 The Quadratic Formula
Example 5.4. Solve the given equation using the quadratic formula.

4x2 − 12x = 7

Example 5.5. Find k if the equation x2 + 4x + k = 0 has a real double root.

Example 5.6. An investment of $2,000 is deposited at a certain annual interest rate. One year later, $3,000 is
deposited in another account at the same rate. At the end of the second year, the account have a total value of
$5,319.05. What is the interest rate?

64
5.3 Solving Quadratic Equations by the Quadratic Formula
Remark 5.7. Given ax2 + bx + c = 0 the discriminant is " = b2 − 4ac. There are four types of solutions.

1. If the discriminant is positive and square of an integer, then there are two rational solutions.

2. If the discriminant is positive but not square of an integer, then there are two irrational solutions.

3. If discriminant is zero, then there is one rational solutions.

4. If discriminant is negative, then there are two non-real complex solutions.

Example 5.8. Solve the following quadratic equations.

1. 6x2 − 5x = 4

2. x2 − 4 = 2x

3. 16x2 + 40x + 25 = 0

4. (x − 1)(9x − 3) = −2

65
5.4 Equivalent Fractions
Example 5.9. Reduce each fraction to simplest form.

x2 − 10x + 25
1.
x2 − 25

3a2 − 13a − 10
2.
a2 − 4a − 5

Example 5.10. Find the expression A such that the fractions are equivalent.

4x2 − 1 A
=
4x2 + 6x − 4 2x + 4

66
5.5 Multiplication and Division of Fractions
Example 5.11. Simplify the given expressions involving multiplications and divisions.
! 2 "! "
2x − 4x − 6 x3 − 4x2
1.
x2 − 3x 4x2 − 4x − 8

! "! "
4x2 − 1 2x + 1 2x2 − 50
2. ÷
x−5 2x 4x2 + 4x + 1

67
5.6 Addition and Subtraction of Fractions
Example 5.12. Perform the indicated operations and simplify.
x 1 3x
1. + −
2x − 6 4 4x − 12

x+4 x−2
2. − 2
x2 + 5x + 4 x − 5x + 6

68
5.6.1 Exercises

Example 5.13. Given the following quadratic functions, find the vertex and use it to graph them.

1. f (x) = −3(x − 4)2 − 7

2. g(x) = x2 + 10x + 6

3. h(x) = 4(x − 3)(x + 2)

69
Example 5.14. Solve the following inequalities and express the solutions (if exist) in interval notation.

1. 2 |x − 3| − 4x ≤ 5 − x

2. 3 |2x − 1| + 3x ≤ 4x − 7

70
Example 5.15. Solve the following equations.

1. (2 − 3x)2 = 11

2. m4 − 14m2 − 32 = 0

8 10
3. − =1
x x+3

4. x6 − 8 = 0

5. (x2 − 2)2 − 2(x2 − 2) + 1 = 0

√
6. x2 − 9 = 4

71
Example 5.16. Solve the following equation for x.

x2 (x − 1) + x3 (x + 2) = −x2 (2 − x)

Example 5.17. Perform the following operations and simplify. State the restriction.

−1 3x x
+ 2 − 2
2x2 − 3x + 1 x −1 2x + x − 1

72
Example 5.18. Given the quadratic equation, find the value of m such that there is exactly one real solution.

2x2 − 4mx + 2m2 + m = 1

Example 5.19. Given x1 and x2 to be the roots of the quadratic equation 4x2 − 7x = 3 evaluate the following
expression.

2 3 7
− + +
7 x1 x2 (x1 + x2 )2

73
Example 5.20. In a monopoly market, the total weekly cost of producing and selling a product is

C(x) = 2x2 + 100x + 3600.

The weekly demand of this product is

R(x) = −x2 + 400x.

What level of production will yield a profit of $1, 200?

Example 5.21. For a rectangle, if the ratio of the length to the width equals the ratio of the length plus the width
to the length, the ratio is called the golden ratio. Find the value of the golden ratio.

74
6 Exponential and Logarithmic Functions and Equations

6.1 Exponential Functions (Week 8)

6.1.1 Exponential Functions

An exponential function is of the form

f (x) = bx

where base b is a positive real number.

Remark 6.1. We will examine the following cases for x.

1. If x = n is a positive integer then bn = bb · · · $b .

! "#
n f actors

2. If x = 0 then b = 1.
0

1
3. If x = −n is a positive integer then b−n = .
bn
p p √ % √ &p
4. If x = is a rational number (p and q are integers and q > 0) then: b = b q = q bp = q b .
x

6.1.2 Exponential Functions and Their Graphs

Example 6.2. The graph of f (x) = 2x when

1. x is a rational number (graph on the left)

2. x is a real number number, i.e. x ∈ R (graph on the right)

Figure 6.1: Graph of f (x) = 2x when x is rational (left) and x is real (right)

Example 6.3. The Graph of members of the family of functions f (x) = bx are presented below.

Figure 6.2: Graph of y = bx for different bases

76
Remark 6.4. Note the following:

1. All graphs passes the y-intercept point P (0, 1).

2. If 0 < b < 1 then the function is decreasing (exponential decay).

3. If b = 1 then the function is constant.

4. If b > 1 then the function is increasing (exponential growth).

5. The domain is R = (−∞, ∞).

6. The range is (0, ∞).

Figure 6.3: Graph of y = bx for different bases

Example 6.5. Sketch the graph of the following functions and determine their domain and range.

1. f (x) = 1 − 2x

' (x
1
2. g(x) = −3
2

77
6.1.3 Laws of Exponents

Given a and b are positive numbers and x and y are real numbers, then

1. bx by = bx+y

bx
2. = bx−y
by

3. (bx )y = bxy

4. (ab)x = ax bx

Example 6.6. Simplify the following.

) *−3 −4
1. 2x−2 x

3 1
5a 2 a 2
2.
a−1

6.1.4 The Number e

The exponential function f (x) = bx the base b is chosen in a way that the slope of the tangent line to the graph at
point P (0, 1) is 1. This number is denoted by e which the value (e ≈ 2.71828). The function f (x) = ex is called the
natural exponential function.

Figure 6.4: The graph of y = ex lies in between the graphs of y = 2x and y = 3x

78
Example 6.7. Sketch the graph of function y = 1 − e−x and state the domain and range.

Example 6.8. Solve the following exponential equations for x.

1. x2 e−x − 9e−x = 0

2. e3x−1 − e = 0

Example 6.9. Suppose that $2,500 is invested at 7% compounded quarterly. How much money will be in the
account in
3
1. year?
4

2. 15 years?

79
6.2 Logarithmic Functions
6.2.1 Logarithmic Functions

The exponential function f (x) = bx is a one-to-one function and its inverse is called the logarithmic function, that is

logb x = y ⇐⇒ by = x

Given logarithmic function y = logb x and y = bx , we have

• The domain of y = logb x is (0, ∞) that is the range of y = bx .

• The range of y = logb x is R = (−∞, ∞) that is the domain of y = bx .

• If b > 1 then y = bx increases rapidly for x > 0 but y = logb x increases slowly for x > 1.

• The graph of y = logb x is the reflection of the graph of y = bx about the line y = x.

Figure 6.5: Graph of y = logb x and y = bx for b > 1

6.2.2 Laws of Logarithms

Given x and y are positive numbers and x and y are real numbers, then

1. logb (xy) = logb x + logb y

' (
x
2. logb = logb x − logb y
y

3. logb (xr ) = r logb x

Example 6.10. Evaluate the following using laws of logarithm.

log3 10 − log3 5 − log3 18

80
6.2.3 Natural Logarithms

The logarithm with base e is called the natural logarithm and is denoted by ln x. This special notation is

loge x = ln x

The exponential function f (x) = ex is the inverse of ln x and is called the natural logarithmic function, that is

ln x = y ⇐⇒ ey = x

We note thew following:

1. ln e = 1

2. ln (ex ) = x for x ∈ R

3. eln x = x for x > 0

ln a
4. logb a = (change of base formula)
ln b

Example 6.11. Solve the equation

1 + e4x+1 = 20

Example 6.12. Expand ' (

x3 (x − 2)
ln √
3
x2 + 1

81
Example 6.13. Rewrite in equivalent exponential form.

1. log2 32 = 5

3
2. log4 8 =
2

Example 6.14. Rewrite in equivalent logarithmic form.

1. bx = M

2. 27 3 = 9
2

Example 6.15. Evaluate the following.

1. log10 1, 000, 000

2. log10 1
100,000

3. ln e−3

4. eln(−3)

Example 6.16. Find x.

1. logx 81 = −4

2. log4 x = 3
2

3. log10 (x + 6) − log10 (x − 3) = 1

Example 6.17. How many years (to two decimal places) will it take $5,000 to grow to $7,500 if it is invested at
8% compounded monthly?

82
6.3 Exponential Functions
Example 6.18. The value of V of a bank account in which $250 is invested at 5.00% interest rate, compounded annu-
ally, is V = 250(1.0500)t , where t is the time in years. Find the value of the account after 4 years.

Example 6.19. The strength I of a certain cable signal is given by I = I0 e−0.0015x , where I0 is the signal strength
at the source and x is the distance (in km) from the source. What percent of the signal strength is lost 15km from
the source?

83
6.4 Logarithmic Function
b
Example 6.20. An equation used in measuring the flow of a water in a channel is C = −a log10 ( ). Solve for R.
R

Example 6.21. Show that the given pair of functions are inverse of each other.

x
y = 10 2 and y = 2 log10 x

84
6.5 Properties of Logarithms
Example 6.22. Write the following expression as the logarithm of a single quantity.
1 √
logb x + 2 logb 5 − 3 logb x
2

Example 6.23. Solve y in terms of x.

log3 y = log3 (x − 4)−5 + log3 81

+
Example 6.24. If logb x = 2 and logb y = 3, find logb 3
x4 y 2 .

85
6.6 Logarithms to the Base 10
895
Example 6.25. Use logarithm to evaluate .
73.486

Example 6.26. Evaluate:

3(10log 0.1 ) + 4(10log 0.01 ) + log(log 10100 )

' (
%T
Example 6.27. The percent transmittance (%T ) of a substance is related to its absorbance A by A = − log .
100
Find %T if A = 0.27.

86
6.7 Natural Logarithms
√
Example 6.28. Simplify: ln e9 + 2 ln e(2x+1) .

Example 6.29. Solve y in terms of x, given: ln y + 2 ln x = 1 + ln 5 .

Example 6.30. Solve for x, given: ln (log x) = 0 .

Example 6.31. If x = ln 4 and y = ln 5, express ln 80 in terms of x and y.

87
6.8 Exponential and Logarithmic Equations
Example 6.32. Solve the given equations.

1. 2e−3x+1 = 100

2. 12.2x+3 = 18x

3. log x2 = (log x)2

4. 3 ln 2 + ln(x − 1) = ln 24

5. 3x + 3−x = 4

88
6.4 Logarithmic Function
b
Example 6.20. An equation used in measuring the flow of a water in a channel is C = −a log10 ( ). Solve for R.
R

Example 6.21. Show that the given pair of functions are inverse of each other.

x
y = 10 2 and y = 2 log10 x

84
6.5 Properties of Logarithms
Example 6.22. Write the following expression as the logarithm of a single quantity.
1 √
logb x + 2 logb 5 − 3 logb x
2

Example 6.23. Solve y in terms of x.

log3 y = log3 (x − 4)−5 + log3 81

!
Example 6.24. If logb x = 2 and logb y = 3, find logb 3
x4 y 2 .

85
6.6 Logarithms to the Base 10
895
Example 6.25. Use logarithm to evaluate .
73.486

Example 6.26. Evaluate:

3(10log 0.1 ) + 4(10log 0.01 ) + log(log 10100 )

" #
%T
Example 6.27. The percent transmittance (%T ) of a substance is related to its absorbance A by A = − log .
100
Find %T if A = 0.27.

86
6.7 Natural Logarithms
√
Example 6.28. Simplify: ln e9 + 2 ln e(2x+1) .

Example 6.29. Solve y in terms of x, given: ln y + 2 ln x = 1 + ln 5 .

Example 6.30. Solve for x, given: ln (log x) = 0 .

Example 6.31. If x = ln 4 and y = ln 5, express ln 80 in terms of x and y.

87
6.8 Exponential and Logarithmic Equations
Example 6.32. Solve the given equations.

1. 2e−3x+1 = 100

2. 12.2x+3 = 18x

3. log x2 = (log x)2

4. 3 ln 2 + ln(x − 1) = ln 24

5. 3x + 3−x = 4

88
6.8.1 Exercises

Example 6.33. Solve the following equation for x.

! "− 1 ! "− 1
125 3 1 4 = 24x−6
64 625

Example 6.34. David invests $10,000. How long will it take for the investment to double in the amount if the rate
is at 10% compounded annually. (Round your answer to nearest integer)

89
Example 6.35. Find the sum of the roots of the following equation.

4x − 18(2x ) + 32 = 0

Example 6.36. Solve the following equation for x.

ln(2x − 3e) = 1

90
Example 6.37. Given x "= 0 simplify the following equation

2log2 x + 2 log2 2x + 1
2

Example 6.38. Find the inverse of function

f (x) = log2 (−x) − 1

91
Example 6.39. Let a and b be positive numbers and b "= 0. If the exponential function f (x) = a(b)x passes through
4
the points P (0, 4) and Q(3, ), find a + b.
27

Example 6.40. Given

 % 
1 x2 
ln  √ = A ln x + B ln(x + 1) + C ln(x + 2)
4

x+2 x+1

Find the values of A, B and C.

92
Example 6.41. Suppose that the population of a state in 2010 was P = 40 million and its annual percent-
age rate of continuous growth is r = 1.09%. The function f (x) = P erx where r is in decimal notation, mod-
els the population of this state in millions, x years after 2010. What is the estimated population in 2022?

Example 6.42. Studies have shown that the concentration (in mg/cm3 of blood) of aspirin in a typical person is
related to the time t (in hrs) after the aspirin reaches maximum concentration by the equation ln c = ln 16 − 0.44t.
Solve for c as a function of t. Write your answer without any logarithms.

93
Example 6.43. In an electric circuit containing a resistor and a capacitor with an initial charge q0 , the charge q
on the capacitor at any time t after closing the switch can be found by solving the equation

t
ln q = − + ln q0
RC
Here, R is the resistance, and C is the capacitance. Solve for q as a function of t.

Example 6.44. Use logarithms to find the x-intercept of the graph of the given function

f (x) = 4 − 5x−2

94
Example 6.45. What values of x cannot be solutions of the given equation.

f (x) = log(7x − 9) + log(x2 + 3)

Example 6.46. Solve the given equation

log(2x − 1) + log(x + 5) − 1 = 0

95
Example 6.47. Use a calculator to solve the given equation.

15−x+1 = 1.431

Example 6.48. Solve the given equation

2 ln 2 + ln(x − 3) = ln 36

96
Example 6.49. Use logarithms to solve the equation symbolically.

ln x + ln x2 = 5

Example 6.50. Solve the following equation and round it to three decimal places.

10000.12x = 25, 000

Answer: x = 12.217

97
Example 6.51. Solve the given equation

log4 x + log4 32 = 3 + log4 x2

Example 6.52. Given x = ln 3 and y = ln 2, express ln 54, in terms of x and y.

98
Example 6.53. Explain what is meant by the expression ln ln x.

1. The expression is the composite function of the natural logarithms.

2. The expression is the product of the two natural logarithmic functions.

3. The expression is the logarithmic function with base 10.

4. The expression is the square of the natural logarithms.

Example 6.54. Use logarithms to evaluate the given expression.

√
8.09(2466)30
10

99
Example 6.55. Determine the value of x given

3 log27 (x − 6) + 1 = 0

Example 6.56. A study of urban density shows that the population density M (in persons/km2 ) is related to the
distance s (in km) from the city centre by
ln M = ln c−us + bs4

where c, u and b are positive constants. Solve for M as a function of s.

100
7 Geometric Series

7.1 Sequences, Series, and Summation Notation (Class 10)

Example 7.1. Write the first five terms of the following sequence.
! "n+1
1
an = −
2

Example 7.2. Write the following series in expanded form.

#6 (−1)k
2
k=3 k − k

Example 7.3. Write the following series using summation notation.

1 − 4 + 9 − · · · + (−1)n+1 n2

101
7.2 Arithmetic and Geometric Sequences
Example 7.4. Given a1 , a2 , a3 , . . . , an , . . . be an arithmetic sequence, find the indicated quantities.

a1 = 2 ; d = 4 ; a21 =? ; S31 =?

Example 7.5. Given a1 , a2 , a3 , . . . , an , . . . be a geometric sequence, find the indicated quantities.

a1 = 1 ; a7 = 729 ; r = −3 ; S7 =?

Example 7.6. If you borrow $5,400 and repay the loan by paying $300 per month to reduce the loan and 1.5% of
the unpaid balance each month for the use of the money, what is the total cost of the loan over 18 months?

102
7.3 Arithmetic Sequences
Example 7.7. Find the n-th term of the arithmetic sequence with the given values.

a1 = −0.7 ; d = 0.4 ; n = 80

Example 7.8. Find the sum of the n terms of the indicated arithmetic sequence.

27 + 24 + 21 + · · · + (−9)

√
Example 7.9. Find x if 3 − x , −x and 9 − 2x are the first three terms of an arithmetic sequence.

103
7.4 Geometric Sequences
Example 7.10. Find the sum of the first n terms of the following geometric sequences.

2
162 − 54 + 18 − · · · −
3

Example 7.11. If $100 is invested each year at 5% interest compounded annually, what would be the total amount
of the investment after 10 years (Before the 11th deposit is made)?

104
7.5 Infinite Geometric Series
Example 7.12. Find the sum of the given infinite geometric series.

9
5−3+ − ···
5

2
Example 7.13. Find x if the sum of the terms of the following infinite geometric series is .
3

1 + 2x + 4x2 + · · ·

105
7.5.1 Exercises

Exercise 7.14. Evaluate and simplify

6
$ (−1)k
k2 − k
k=3

Example 7.15. A car depreciates $1500 during the first year after it is bought. Each year thereafter, it depreciates
$150 less than the year before. What was the original price of the car?

106
 1 1
Example 7.16. The 4th and 7th term of a geometric sequence are and respectively. What is the sum of
27 729
the first 7 terms of this sequence?

Example 7.17. Find x if

2
1 + 2x + 4x2 + 8x3 + · · · =
5

107
Example 7.18. Given the following series,
1 1 1 1 1 1
− + − + −
2 4 6 8 10 12
indicate the corresponding sum in summation notation.

Example 7.19. If the 1st and 12th terms of an arithmetic sequence are a1 = 5 and a12 = 49, find the 40th term of
this sequence.

108
Example 7.20. Find the sum of the terms in the indicated arithmetic sequence.

5, −1, −7, −13, . . . , −103

Example 7.21. Find the 1st term of a geometric sequence with given values of common ratio and 5th term as
1 17
r = − and a5 = −
2 16

109
Example 7.22. Write the series,
1 1 1 1
− + −
21 22 23 24

using summation notation with

1. The summing index k starting at k = 1

2. The summing index j starting at j = 0.

Example 7.23. If a person borrows $7,200 and repay the loan by paying $100 per month to reduce the loan and
1% of the unpaid balance each month for the use of the money, what is the total cost of the loan over 72 months?

110
Example 7.24. The government, through a subsidy program, distributes $31,000,000. If each person or agency
spends 65% of what is received, and 65% of what is spent, and so on, how much total increase in spending results
from this government action? In this problem, let a1 = 20, 150, 000.

Example 7.25. If $2,500 is invested at 1% compounded annually, the amount A present after n years forms a
geometric series with common ratio 1+0.01=1.01. Use a geometric sequence formula to find the amount A in the
account after 10 years and after 20 years and a1 is the amount in the account after 1 year.

111
Example 7.26. There are 11 seats in the first row around a semicircular stage. Each row behind the first has 3
more seats than the row in front of it. How many rows of seats are there if there is a total of 657 seats?

Example 7.27. A new factory in a small town has an annual payroll of $9 million. It is expected that 70% of this
money will be spent in the town by factory personnel. The people in this town who receive this money are expected
to spend 70% of what they receive in the town, and so on. What is the total of all this spending (called the total
economic impact of the factory) on the town each year?

112
 \rBeK tl

I Time Value of Money: Simple and Compound Interest

8.1 Calculating the Amount of Sirnple Interest (week ll.)

Example 1$5 Compute the amount of interest on $785.95 borrowed at 8% p.a. (per annum) from Januarv 30,

?9?2, until N'Iarch 2Lj2!22.

T- =Pr
aSo-*gs ( to^,ro -----+ mo"t.' 21)
a: interust
o r'-8'f. = o.o8 P ; Pri"ciga'\
f : f6'te
, P-- 4a8:.9s t-tidl e

o L = 59 e"us - p-
3
y.o'
355 Jtgs

I=Prt
r = G s5-1s)(o.orX*)
lt=f4.6!

Examplt. !96 David deposited $1700.00 into a savings account earning interest at 3-4Ya per annum. After 160

days. how rnuch interest had the deposit earned?

.P = V floo.oo
.r=!.*'1.: o'o74
. t- $. :"^.

- - Pr{
/ \eo
a = [?oo.oo)(''o*)( ab5 )
I f 25.7+
oc

ir''
\9
8.2 Calculating the Principal, Elate, or Time

Example lcl? Calculate the annual rate of interest required for $744 to earn $54.25 i" 10 -gnrbhs.

k
. r=-r5+.26
? - I r'*tY

,t=19t2- Yr

a=Prt

B4.LS :- 12"+)t")[ E )
620 r
54.25 =
t = 54.25
620

s.?5'f.
r = o. D3?S -? \ r=

Example J98 Fbr how many days would a loan of $2000 be outstanding to earn interest of $38.70 at 6.77a p.a. ?

s
p r. .=o.lcr
P=' 2ooo

. 1=$3&?o
o r -- o.O6l

a=?rt
o =' ( r) (t)
7s.? @ooo) "'"
38.?o - va+

t, = ?83r
\LL

*. z oo3t?zt? 1l \Va{e

.l.r{J
t=flo.lr?2rrn) (les)
\_
r = r\5. 7s p[!) o"r'

90
8.3 Computing F\rture Value (Maturity Value)
Example 19?. Determine the future value (maturity value) of an investment of $980 earning 3.8% p.a. for 238

days' pL _ $eao-oo
c = 46Lt-oa
$= p+ 1
o Y = g-s'|. a.o38
--
238 \let^r S =P +?tt
ot =
365
S:P(r+rt)
S=P(r*"t) Firtue Velur-
sf S:-Qte i^k/dst
= QBo (,n (,.ott)(*) )
+
loo+ "26

Example 2o0 , On &!guqE-a!i, 2021, Courtney's parents borrowed $4,300 from a sectrred line of credit at their
bank in order to pay Courtney's fall tuition, with interes t at 4:%p.a.
R
On what date did Courtney's parents repay

the line of credit if they ended up payrng $4,368.55?

-"str euX.26,?oZt r=+{ / 2

crn.612oZZ
f*"'.y" J

S=P+1
$ 4,3oo $ 4,rra,ss
a r=S-P
!= 4,)L8.55-4,3oo
! 68.5s

tug.26 2oz t
d4 y5

I =Prt AuS. 3\

:(tr'")( +|Q1t1 5e91. 30 +

68.55 oct. 3l
NoY, 30
68.ss : @,*)( +J7s7") {+) 5u.. 3l +
6s.ss : 1+,2*1(0.o+3?5) (t) J(aa

Qozz)
. 3l f"-,,- r"r, I
68" ss leB. rzs t

t = q:5I-
98"125t

t= o.3643sS \ear
t= (o.4643s5)[36s) * t33.ooo66 d 133 dqgs (t?i+ posi"g iaa",et)

9t
8.4 Calculating The Principal (Present Value)

Example fu l. Compute the value of an investment eight months before the maturitv date that earns interest at

7Yo p.a. arrd has has a maturity vaiue of value $950. {?

Y =-l /,
c l'= 5oO? 8 rnorfi'hs

. ^k
b= -95s 2

" p= T

.1=Q yeo.
\L

S=P(t+rt)
LD
t=
t+ rt

P= 95o
r+ (o"oz)({1)
P
,$
qo?.64 *-The present urlvo o( {}{- iatlesthr^t

Example !o2 An appliance store advertises a sofa for Q'19-9.99 *'ith nothing down, no paYments, and no interest
D

f.tqra4gAbt Determine the cash value the store wouid be willing to accept on a six-month investment, if it can
earn arl interest rate of 3.5%.
r r= o.O35 b
I

F- 6 months
F > b 4s9.ie
. 3= 4Q9"1t

.*=S-=t yeaT-

- r--ts.5). = o"435

" F. 1 foa5,a41 Velg-4'

Dt S

r+ rt
D +c9"e,
--E
r-+ (o.oas)( {1

p +on t,a,
--+
-

91
 8.5 Computing Equivalent Values

Example 203 . Ciart<son Dewelopments was supposed to pay Majestic Flooring $2,000 sixtv days ago and $1,800

in thirty days. Majestic Flooring agreed to accept thtee equal payments due today, 60 days from today, and 120

clays frorn today. Compute the size of the equal payments at 10Ya p'a. Use today as focal date (comparison date)'

Ler ,the Sitc of Qmt Pg*ra,rts bo f n

6q JdCs ago 30 &Js 6o dU. l2o dcqs

I GnPL
I

Hl,Ylo, ? { zooo f,oral $ rE@

i
I

Pc6ng\ts i
i

Rephcarroat . $x s $ x
l.,lourlla^fS

{acel
d4re

.f
B ,* pugrrcaLs qt +lo .6rd dalc:
Lbluo ori$,u"I scV,a4rrteA

(A) $ aooo d.to d"-gt lehro- {o-l dcre ? S= 2ooo[r + ('.,"1(*JJ = { z,o1p.s6
E
(B) d rro Jae b degs o(tr {o*1 dqte I F= lEoo $ r3as.:r
I+ (o.t,)(9)

bc[<.1 wl.lo of replacemen+ Pu5rrunts qt' {ocrrl dcrte ]

(A) l.i pa5malr yyraJe qt €ccal Ja+e t

= * s o.9s382? x
tS) znJ pogmaal mc'ls 6o da3s a&et (v;1 d"o" ? ?= 1-a---
r* t".r"l($')
= $
$6al dart? ?= D-96E1?o x
(4) 1d- pgnervt wodL lL) dctgs of4a7-
\+ (o"to)(*)

g dcrtcd volrro o€ pttgrnurts : &tJ rrql're o{ +t.l oriSino\ schrduld Pq3m{ds

r 4 0,98382? x {- o"968lVo x : 2'032'88 +' \t+85. 33

2.95199?x: 38 l8'2\

x- 11l!:L- --? xe { rzot

"43
2.1s t991

e1
 Example 204. Krista borrowed $16,720. The loan is to be repaid by three equal payments due in 76, 133, and
254 days from now respectively. Determine the size of the equal payments at an interest rate of 4% with a focal
date of today.

Joy s daus
deY s
Nout) \ aL r33 25t'

Sv
Sx 6x
# lLftZP

lru.".rDnre \
DAT€D VALUES:

la
1
Po0meor
/^6.de ?6 Ao$s I r1(o.o+)(*u )
= oo?91140x

*fro 6-l Dot

6 "9 P4ornrrr.-
x 6.?45,63'4. x
ma.lo t33 Jcr-ys P7
t
lez \
-t- (o.oa) \tgs /
efe-r &'t Dlfe

E\ 3E{ fa6'*r'l- x O.Q+2918 x

z5* Jagl P= 2<4 r
=
r.f (o."+) ( i61 J
vr,ado. 3

o{t, {u*l DATc

bor'oual
The sutn is ?4,^r,\ +o oYI\anrL "
+
?+P.4 P3 : 16,? 2o

t6,"2o
0.?1140 x -t' D'q855e+X -'r. p.f I z9lt X

2-.150292- |< = \6'1Lo

16taLo
k*-
2.15029 2

x =*see+.2+

94
 Itoutnt (1.s1 J"'y T^b\z s.r X{e '*"a"@{e&book
bu| aot lc^St J"
$ {t. .c,.ch dt3 "€ +uYea)
e-.ffi".^-bers
Example 205. A loan of $-l6l5-tat en out on June 7 requires three pa1'rnents. The first payment is due on July
7. The second payment is twice as large as the first payrnent and is due on August 22,fhe final payment, due on
Novembet 5 i. tht"" times as large as the first pavment. If the focal date is June 7 , what is the size of each of the
three payments at an interest rate eF Enl I

t= o-o5\) {oc.t\
dcrl-c
5lo,/€rr{oOl
5
5u\ l ? /*,tXus,,2"
S.rc-l
$3N
\ 1
Fo*
$ *.
{ rat5

tq +c.1.€ E. Z
DqtcA rntucs 3 ,is,^t seril'rtrw'befs
v 41 Juot? : 1%( _ 158
D
rrs =fl Ju$?-
6-)
lf:?4$ner* r+ (o,o51) (%) Mb,
'174. -\s8
Lr - 4tr,oeT

6
Vor l'"re =--

x
d ArS t2 cl*gE
' vo.913?2e,
? =
\
,*v.s -*"r..o.:ffi-::X
zx
- Ad oqA.rtten* ?L +L
\,+ (r. osr)(
?;

3,65 )

?z * | -g+ 86) 6+ X

o vrd ?4o*+ ?Z =
\+ (o. os t) (#)
t?
\3s 2.1360\\ x

tl - 'Pt * Pt +
Pa
tJov) rlo'vilaA
{ \,( Y
\"9?8984 Y -+ 2.14801\
+
\ r5ts -< o-9g5az(x
v t,bt5 s 5,9\aaz\ x erd
'bx P a,(AB ,
?$ 2-Y =2( L.,'o; pa6nwl-
s get9.42
\*- L7z - l+
& Pograart
LY
ga$rrttt
=- { 546"28 1-F

95
 't

Example 2O6. Find the equivalent replacement payments for the following scheduled payrnent.

Fosal date Rate

\ due six n0nths ago ln full Today l0 "

S+ri

F = OrlgS
& a -4 5=?
l2 Fr$ leoo

.' S = P (r*
tt)
{uruc"Valr't0
G .,o
s)t#t)
S=,.o'(*
Txi: ls equit*len+
s = $ \6sl+,0o ra,g\o-co/?\raf
gtgwarY

96
 Example ?O? f i"a the equivalent replacement payments for the following scheduled payment.

Reptaeement Payr*ent

At an interest rate of soi,,

S 2300: due in 6rnonths. Three equal paYments due One year
frorn today
l0%
At an interesl rate of 89o, in ri,r12. and )6 months
S1y'00 is due in 2 years.

Gvr)
@ L
u.d# \2-
pot\b!
1S
-..i-t 24 marrths

I 1-/

,i 2 3oo
5'l
FocIL
DftTE
&
{urure Ualu{- b
,r57,5o
of .*zaoo or 5'l $= 23@ L, *(o.o5)(ft)] :-=-
6 wronlhs befoe
fr."t Jale

\+00 & rr? 4 oo7

?rest.1-t valuc

\+ (o.ot) (H)
F-
o{- $t}oo al- r7.
l2 months #t^e'
&c.r\ Jale Ao'+e I s o
gorgrrurntl at
{'a^l
scY'aA'led
,\1e +ola\ Jo.roJ ,ot" 4 oriti*l
Nou:
k$7*. o?- { tg3t .5?
Fzz''.5o _l- mo.lht mo*th1
12 ,"rotht
lS c A,-
iloW ("n
"r\t;
$)4
{;yst one i5 <- x \+ (o,to)(?t)
('or4*o
'rnPn+hl f".ql
A^t $= l.5x Dn\e
&rc \
vat4
[J* E *E oto
o
& fuar;ort 393\" 51
r nel is ,rl fr"t crt- \dl.
''5 a+foc*tr de{g
Aafe 5D voilUa -tota\ 3
j'q*L! o.Q 5Z 3Bl X *- 3q3\,5?
\.5 X + Y +\er[,{}nn-' }"opz}alY
: 6L
39j \ "51
id snn is 6 rnPlfhS
X r, qq7 3Afr x --v x z- ?a oo23tt
ts at*r (ual lq,.* P
6 g"
1 t ( o. 1o ) ( l4 \ a
oC'
 coyrpou^d intensl i cV = PV (r-ri)n
FV ? {q+tre VqluC
weeK 12
Pv: Prindgo\ a

8.6 Basic Concepts and Calculations ("''.L tz) i c ocrirclic ih}e/et| fqle
pcdoJ
:; ;';;' .,;e,,ac,as
Example 2oB F* a sum of money invested at 10% compounded quarterly for@ond the following

1. the nominal annual rate of interest (j); i: p:oJ;c rat of in+ercsl

j: n*;aal o.n*q['ror'i "f ln+<T'rt
of o.to
J-roI 41 4 (orrPoundil6
^: flerloJs Pei'\ea'

2. tlie number of cornpounding periods per vear (rn); rn: {| o( Comgoo,rdrll peri..ls P.r Y@-
n: !fl of Gzrgoundiag tsr;tui! la tho 4era
(q,.o'*, $)
n= + of Yaors y lY) 0l^ 4= t'rrr
ih +ha t€an
tr ti^. (lo^S)

g)
3. the periodic rate of interest (i)r

7 o.lo
4
o.o75 4

4. the number of compounding periods in term (n);

n={12
\ yaors,l\xa

=48

5. the compounding factor (1 + ?)";

48 4A
( l+o.oz) : l'ozi

6. the nirrnerical value of the compounding factor

48
r.o2 5 4. 3-2?t+qo

q8
 5.7 Using the Future Value Formula of a Compounded Amount FV: PV(l+i)"
Exarnple 2O9 Calcutate tire amount to u,'hich $6000 rvill grorv if invested at 4% per irnnurll compounded quarterly
n=+

roo ?rl^c:rgql
trv=PV(r*:1"
2O
o'o4 vton:Ml ratc ( r+ o' o
) = 4'L = = 6ooo.o" )
= { ?Pzt.t+
oF co'4Pou^lhg 0zr Year
4 4{
^=
i=3 --
0.9t= o.ol otuar-+e'lY rc'+e-
4
,,= (s)(a)= zo " "l.,.::i"U'ir".^1

Example LIC ldeposit of $100Learns interest at 9&compounded monthly for 4 y91rs. At that time, the interest
rate changes to 7% compounded qgltglly. What is the value of the depositrl vears after the change in the rahe of
o, comPoo'rJcJ ., cotpou+lJ
interest? 6 /, m",rr\lY 7 l. lqorlc.ty

Nou, t ar45 ( ?
L
,Dercat
r -T:
Dct+o Dcie,or- Dde of
I c]r\u^gl {*rrteValc
o? ratz
I
Fn7
{ FVt"7 ='!
2eoo

o'oos
. Sirsr- 4 1anS Z i=o-o( ; i=S= n*(aXrt) =48 nonths ; PV = 2ooo,6q
t ,n= 12

. F'r 3 Yeor: : Ij=o'oa g i=o.o?

4 =
o.ot?s i n= (?)(4) = 12 1qa/.<f 5

I n=+

F!1 = 2ooo.o'( r+ o.*sfB - $ :s+o '1T8lzz

tz
\ FV, = 2,540 .q183T2 ( ,* o'ol?s) : $ 3rzl' o6

9e
8.8 Present Value and Compound Discount

ExarnplQ 2ll '. Calcutate the present value of $2000 due in 3 vears and 8 months if money is worth 8% compounded

quarterly.
m=4
$
FV=PV 0*i)"
FV = 2oog.oo
FV
r1v= 8 PV =
'g=8'1,= o.o$
(r+i)n

i=-L=
m4
oooS
= o.o2 n* zL

a 4= (. ftr'a* , r^rf,) t+)

- (. *)tn)
1e4l

= (+)t^l
= 14.6

F\I
Dr/
r Y --
o , --n
(t+' )

?V: _ 2ooo.oo -
.14.6
(r1 o-oz)

= $ \495.E"

100
 8.9 Application - Discounting Negotiable Financial instruments at compound Inter-
est

Example 2\2 O"t*.rnine the proceeds of a promissory note for $3600 with interest at 6Ya corrtpounded quarterly;

issued September 1, 2018; due on June 1, 2024; and discounted on December 1, 2020, at 8% compounded semi-
annually.

Dote o4
lss'rc Du+e o€Jiscuunt fuiaDate l.lo'te
Tua1,ToL*
sePl'112ol8 },ec,1,2O2o The gYoce€Js t€ o', infiat -beariqj
note qYL enva,l 1l) +ho pVeg,^fi Vald-t-
al the da+e o{ diScou-f, .{ +hr
SrcP t Vartur-o- ,f *Y," note cft ma+u "! '
r
IYlq+urltY Valu.L
F*CE ue intefcslt P<.rir

at6'1,; syanvs a^d gmonrhs i n:23 , i=o'ols

$ Joo.oo qvsfiir|l Fvr *- ?
36eo Pvl
I

$wL
Discourt rnarurit, \ralM.
n+ 6'1. a,rrgr*Jd
PV -? *rti - annrrol[y d $g?0.16
Syoafs d
G notr'9

voluo tf +hr rda+\!d*Y vdluL

I uolue sFeP 2 ?resent
st(-p n^a+(i{y
--s dt Jiscouot- da+9 :
n=S ?)(^t = L\
"=(e fr)(,) = ?
'r= o.f, =o.or5
Li \= ry = o'04
FVr; aaoo (1* o'rrts) 5o"o. 16
?Vz = '4
rru?o. \6
= { ( r+ o'o4)

+ 385z.'9o

& T1a ptoceeAs o( +ho na-

ot\ Dec.1' 2o2o cte
13::

lDl
8.10 Equivalent Values

Exarnple J.\b. n"frt paymettts of $400 due 5 months ago, $600 clue today, ancl $800 due in 9 months are to be

combined into one payment due 3 months from today at 12% compounded monthly. i= o'tz
IL =
D.ol

months I nonfhs
$ ! nort\S
c5o (on nool 4nn nt')
Nou.l

$ 600
Fotql h eot
$ 4on bqrc

n=3
t2='.

r=8
\=7
n=6
Ea= ?

E1 = 4oo (r* o'ol) { 4aa. r+

.3
6te. ta
Er--brr., (r+o'"r) = S
-&
E3= Boo f t+o'or) $ zsL,e+

Etl,rivalerit Slrgle Pagrneor !,

{
r++
t,go4,rc

LE'*er* ea)

loL
 -
Exarnple
1\tL
/\tt Scheduled debt payments of $750 due 7 months ago, $600 due 2 months ago, and $900*due in 5

months are to be settled bv two equal replacement payments due now and 3 months ft'om now. Determine the size

of the equai replacement payrnerrts at 9% compounded monthly. \__ o.o9 = 6.06?5

l1
n=? Er=?
n=2
Ez= 1

n=5 qoo
S +so $ 6"o tr3= ?
$

1 marrels
a60 2, n*hs
3 ,nonrLs $ nonrhs
qao Noo Trum rLrr q)
4ron Uorr:

F{at
Dore *x

Es=7
n= 3

xlE4 :- ErtEz+ E3

-3 J

x + x(t.oo+s) r5o(t.ooas) + roo( t.oots ) + roo ( t.oo+S)

-

;)aa83?7 -22LL.3oZlL8

x= s lrt45. gs

lo3
Review and Practice Questions
rr=l
Example 215. Determine the future value (maturitv value) of an inr.estment of $4,125,earning 3-2% per-annum
for 150
? .--?C-
da.r*s.
loo =O,O3L
t= !5!-
a65 '
(ear)

S=?(r+tt)
\50
0.o3? (
s = 4\25 ( 1a 1L 5 ))

s- s4/t19,25

Exercise 216. An investment

that time the interest rate is changed
interest compounded quarterly fbr
@
semi-annually. How much will the accumulated value be
At

4 years the change'l

rlor-tI
31e/t{s lyafS
3 yrs 4 Yrs
$4,zso rvt Fu2
r= 0.036 r= O'OL
I ro= 4 m= ?-

(" = (+)(a) = tz n= (+)(z) = a

[; =
a_.Eb = o.009
4 e+=o'03
IL I
FVt =
,t
z{',Lso ( [+ Or ooe) : 4 ,*3r. 4\6 \t9

.8
s4, ?32 o 4 \6\\9 *u, 994.8t
FV2 = ( '" o.o3)

1U4
 -!

r=6'1" =# -a'ob
Example 217. A sum $8,500 due fbr now. If money is monthly,
@
determine the equivalent r.ralue 8-.vears from now-

Uo.^J 2Y@{5 I YAYS

o 2
I 8
72
p{ oSt, ro
Fv =s8,5oo
( t* o'oof) FIt*l
FV= { 12r\?)-r36
| - 0.06
i= o.Pf
ta =
D,oo5

,., = (rz) (*4 =[zl[c) = az

t L l.-
( -- er.
4'Z -- O'O42
"l tro

Example 218. A ioan of $4,000 is due in 5 years- If money is quarterly, find the equivaient

payments that t'ould settle the debt at the in 3 years-

v.=4 trqrttr3
E
:

@@
Now 3 )0415 5 )esrs

2 yeqrs
pV= .F1.; =
40oo
8 PV=?) rV =%ooo
(t+ t,; (r 1 o.O\05)

s'3r6?9 O.O42'
FV uz .24 c -

4
(+)=8 Tva(te'rs
^=7 r 1.,**.)
\eti$
or
: ( 2P -\1-= I

r.05
 4 Varrs n$ = 4+B=**i= **T= t1
{ r= tloo = o.o63
Example 219. its due date, aseven-year note bearing interest
",l*ul
compounded annually is diseounted at quarterly. Find the compound discount-
m=l r= Ll =oro2l m=4
loo
:- o.o63 - O.063
rr- -T* --
PV1= 50.Ie
I I
G)(1
'lear5
7
FV

y.drs lO monrhs
PVz Y

o.oo 525
n
ltt'*=
trV=PVt\t+t /. [".= (os*)(l) = (? Xt)
)
+ GD = te'333333
Fv- {+,9so" t, ( I + o.063)
FVzl,-$afgl,866?8+

FV
YV, =
( r* i")n'
PV7 = a59 t .86 6?8+
r9, aaa3r)
( t o o"oo525)
Pv, er $ 6g 60.9to16z

CompounJ discount -FY-"Vz

s
b860,17olbz
- 4+s 91.8667$4
fi 73o. t+

1Ui)
 E;xampie l2A. Loan payments ciue yeaxs ago $35U0 * &,= yJh" to be replaced by@-)
equal payrnents. The first replacement payrnent is due now'and the second palrnent is due in nine years. Determine

the size oi the two replacement palrmellts if interest 3% quarrerty and the fSe!i$91q:uos.
=:*i
r= 3'3-= oco?3 l-m=-3J
loo

r o.o7z -=l;;;t 8tfl n,=(zX4)=8

I
t n
rt ,,r=g[+)
t+too rr $ 35oo
L

2
leorg 6Vctts ?yars
trocol
Datte
I
E,3
nu = (e [+)= 36

et = 4so' ( \+ O.O lS2,

0.52\48+ X - 53!o s7
?2L7'5?64\ -'- x + Et:
5zoorsi?D6? +
--+
'',cD
L+
x
\o983 =- I.szi 4a\ E7 15oo ('o
\
o'o182 ,
"4.[9. +3
Er- f 2zLA. 5767
x: 4 +?08'4+
t "5b
/
\'tni si5 ti>e * *'"
+ha. €z** ( t+- ocols'i
ruq\ur!.nurn{- Ygnusn6
--t. L--
L 3- 6 o-5z\48+ x
l

IU/