BBMP1103 Mathematics For MGT - Vaug19 (RS & MREP)

BBMP1103
Mathematics for Management
Copyright © Open University Malaysia (OUM)

BBMP1103
MATHEMATICS
FOR MANAGEMENT
Assoc Prof Dr Zurni Omar
Noraziah Man
Hawa Ibrahim
Fatinah Zainon
Azizan Saaban

Project Directors: Prof Dr Widad Othman
Prof Loo Sin Chun
Open University Malaysia
Module Writers: Assoc Prof Dr Zurni Omar

Noraziah Man
Hawa Ibrahim
Fatinah Zainon
Azizan Saaban
Universiti Utara Malaysia
Moderators: Fatinah Zainon

Noraziah Haji Man
Assoc Prof Dr Zurni Omar
Hawa Ibrahim
Universiti Utara Malaysia
Developed by: Centre for Instructional Design and Technology

Open University Malaysia
First Edition, November 2007

Fifth Edition, April 2018 (rs)
Sixth Edition, August 2019 (MREP)
Copyright © Open University Malaysia (OUM), August 2019, BBMP1103
All rights reserved. No part of this work may be reproduced in any form or by any means without
the written permission of the President, Open University Malaysia (OUM).

Table of Contents
Course Guide ix–xiv
Topic 1 Concepts in Algebra 1

1.1 Sets of Real Numbers 1
1.2 Polynomials 3
1.3 Factoring Polynomials 11
1.4 Partial Fractions 15
1.4.1 The Cover-up Rule 16
1.4.2 The Combine Method 20
1.4.3 Improper Fractions 22
Summary 24
Key Terms 25
Self-Test 25
References 26
Topic 2 Linear and Quadratic Functions 27

2.1 Linear Equations and Graph Sketching 28
2.1.1 Linear Equations 28
2.1.2 Slope 29
2.1.3 Types of Straight Lines 30
2.1.4 Graph Sketching 31
2.2 Parallel and Perpendicular Lines 34
2.3 Quadratic Equations and Graph Sketching 39
2.4 Intersection Point 47
Summary 53
Key Terms 53
References 53
Topic 3 Application of Linear and Quadratic Functions 54

3.1 Demand and Supply Functions 55
3.1.1 Market Equilibrium Point 56
3.2 Cost and Revenue Functions 59
3.2.1 Break-even Point Analysis 62
3.3 Maximum and Minimum Values 64
Summary 68
Key Terms 68
References 68

iv  TABLE OF CONTENTS
Topic 4 Matrices 69
4.1 Classifications or Types of Matrices 72
4.1.1 Row Matrix (Row Vector) 72
4.1.2 Column Matrix (Column Vector) 72
4.1.3 Square Matrix 72
4.1.4 Diagonal Matrix 73
4.1.5 Special Matrix 73
4.2 Matrix Operations 74
4.2.1 Equality of Matrix 75
4.2.2 Transpose 76
4.2.3 Matrix Addition 77
4.2.4 Matrix Subtraction 77
4.2.5 Scalar Multiplication 78
4.2.6 Matrix Multiplication 79
4.3 Determinant 82
4.3.1 Minor of Element aij 84
4.3.2 Cofactor of Element aij 86
4.4 Inverse Matrix 88
4.5 Solving Linear Equation System Using Matrices 90
4.5.1 Matrix Equation 90
4.5.2 Inverse Matrix Method 91
4.5.3 Cramer’s Rule 95
Summary 102
Key Terms 105
References 105
Topic 5 Exponential and Logarithmic Functions 106

5.1 Properties of Exponentials 107
5.2 Equations and Exponentials Graphs 110
5.3 Logarithmic Functions 113
5.4 Properties of Logarithms 115
5.5 Equations and Logarithmic Graphs 119
5.5.1 Application on Growth and Decay Processes 122
5.5.2 Investment with Compound Interest 124
Summary 127
Key Terms 128
References 128

TABLE OF CONTENTS  v
Topic 6 Compound Interest: Present Value and Future Value 129

6.1 Compound Interest 130
6.1.1 Compound Interest Formula 133
6.2 Effective and Nominal Rate 137
6.3 Future and Present Value 139
6.4 Equation of Value 141
Summary 147
Key Terms 147
Reference 148
Topic 7 Differentiation 149

7.1 Constant Rule 150
7.2 Power Rule 151
7.3 Constant Times a Function Rule 152
7.4 Rules of Sums and Differences of Functions 153
7.5 Product Rule 156
7.6 Quotient Rule 158
7.7 Chain Rule 160
7.8 Power Rule (A Special Case of the Chain Rule) 163
Summary 168
Key Terms 169
References 169
Topic 8 Applications of Differentiation 170

8.1 Second and Third Degree Differentiation 171
8.2 Total Cost Function (C) 173
8.2.1 Average Total Cost Function ( C ) 174
8.2.2 Marginal or Ultimate Total Cost Function (C) 174
8.2.3 Minimising Total Cost 175
8.3 Total Revenue Function (R) 179
8.3.1 Average Total Revenue Function ( R ) 179
8.3.2 Marginal or Ultimate Total Revenue Function (R) 179
8.3.3 Maximising Revenue Function 180
8.4 Total Profit Function () 184
8.4.1 Average Total Profit Function (  ) 185
8.4.2 Ultimate Total Profit Function () 187
8.4.3 Maximising Total Profit 188
Summary 192
Key Terms 192
References 193

vi  TABLE OF CONTENTS
Topic 9 Integration 194

9.1 Anti-derivatives 194
9.1.1 Integration Rules 195
9.2 Definite Integrals 200
9.2.1 Rules of Definite Integrals 201
9.3 Integration by Substitution 203
Summary 210
Key Terms 210
References 211
Topic 10 Applications of Integration 212

10.1 Calculating the Area Under a Graph 213
10.2 Applications of Integration in Economics and Business 217
10.2.1 Consumer Surplus and Producer Surplus 217
10.2.2 Finding the Cost, Revenue and Profit Functions 223
from its Marginal Function
Summary 229
Key Terms 229
References 229
Answers 230

COURSE GUIDE

COURSE GUIDE  ix
COURSE GUIDE DESCRIPTION

You must read this Course Guide carefully from the beginning to the end. It tells
you briefly what the course is about and how you can work your way through the
course material. It also suggests the amount of time you are likely to spend in
order to complete the course successfully. Please keep on referring to the Course
Guide as you go through the course material as it will help you to clarify
important study components or points that you might miss or overlook.
INTRODUCTION
BBMP 1103 Mathematics for Management is one of the courses offered at
Open University Malaysia (OUM). This course is worth 3 credit hours and should
be covered over 8 to 15 weeks.
COURSE AUDIENCE
This is a core course for all learners of bachelor degree programmes offered by
Cluster of Business and Management.
As an open and distance learner, you should be acquainted with learning

independently and being able to optimise the learning modes and environment
available to you. Before you begin this course, please ensure that you have the
right course material and understand the course requirements as well as how the
course is conducted.

x  COURSE GUIDE
STUDY SCHEDULE
It is a standard OUM practice that learners accumulate 40 study hours for every
credit hour. As such, for a three-credit hour course, you are expected to spend 120
study hours. Table 1 gives an estimation of how the 120 study hours could be
accumulated.
Table 1: Estimation of Time Accumulation of Study Hours
Study
Study Activities
Hours
Briefly go through the course content and participate in initial discussions 6
Study the module 55
Attend 3 face to face tutorial sessions 6
Online participation 14
Revision 18
Assignment(s), Test(s) and Examination(s) 22
TOTAL STUDY HOURS ACCUMULATED 120
COURSE LEARNING OUTCOMES

By the end of this course, you should be able to:
1. Formulate algebraic concepts and methods to perform mathematical finance

calculations;
2. Apply mathematical relations and functions in business settings; and
3. Determine the solution to business and economic problems using calculus

concepts.

COURSE GUIDE  xi
COURSE SYNOPSIS
This course is divided into 10 topics. The synopsis for each topic is listed as
follows:
Topic 1 introduces the real number system and its properties. We will discuss the
various types of number, number line, inequality, intervals and absolute values. In
arithmetic, only numbers and their arithmetical operations (such as +, −, × and ÷)
occur while in algebra, one also uses symbols (such as a, x, y) to denote numbers.
This is useful because it allows the general formulation of arithmetical laws (such
as a + b = b + a for all a and b). Thus, it is a starting point to a systematic
exploration of the properties of the real number system.
Topic 2 discusses linear and quadratic functions as well as solving equations and
sketching graphs.
Topic 3 discusses the applications of linear and quadratic functions that are
mainly used in economics.
Topic 4 discusses the classifications of matrices, matrix operations and

determinants. This is followed by solving linear equations simultaneously using
the method of matrix inverse and Cramer’s rule.
Topic 5 discusses exponential and logarithm functions and how these two
functions are associated with one another.
Topic 6 introduces compound interest, which is commonly applied in finance and

economics. The compound interest formula and some relevant examples are
provided in the topic. In addition, this topic also explains the difference between
the effective rate and nominal rate, and demonstrates the computation of present
value. Examples on the set up of equation of value are also provided.
Topic 7 discusses the rules of differentiation, which simplify the process of

obtaining the derivatives for various functions.

xii  COURSE GUIDE
Topic 8 discusses the process of deriving higher levels of differentiation and the
functions of the total cost, total revenue and total profit in order to arrive at the
minimum cost as well as maximum revenue and profit.
Topic 9 introduces integration as a reverse process of differentiation. Further

discussions are on indefinite integrals and definite integrals, followed by
integration on algebra as well as exponential and logarithm functions. The method
of integration by substitution is also introduced in this topic.
Topic 10 discusses the various applications of integration such as finding or

calculating the area under a curve and its relevant applications in economics and
business. Marginal functions as well as producer surplus and consumer surplus are
some of the functions that are discussed in detail.
TEXT ARRANGEMENT GUIDE

Before you go through this module, it is important that you note the text
arrangement. Understanding the text arrangement will help you to organise your
study of this course in a more objective and effective way. Generally, the text
arrangement for each topic is as follows:
Learning Outcomes: This section refers to what you should achieve after you
have completely covered a topic. As you go through each topic, you should
frequently refer to these learning outcomes. By doing this, you can continuously
gauge your understanding of the topic.
Self-Check: This component of the module is inserted at strategic locations

throughout the module. It may be inserted after one sub-section or a few sub-
sections. It usually comes in the form of a question. When you come across this
component, try to reflect on what you have already learnt thus far. By attempting
to answer the question, you should be able to gauge how well you have
understood the sub-section(s). Most of the time, the answers to the questions can
be found directly from the module itself.

COURSE GUIDE  xiii
Activity: Like Self-Check, the Activity component is also placed at various

locations or junctures throughout the module. This component may require you to
solve questions, explore short case studies, or conduct an observation or research.
It may even require you to evaluate a given scenario. When you come across an
Activity, you should try to reflect on what you have gathered from the module and
apply it to real situations. You should, at the same time, engage yourself in higher
order thinking where you might be required to analyse, synthesise and evaluate
instead of only having to recall and define.
Summary: You will find this component at the end of each topic. This
component helps you to recap the whole topic. By going through the summary,
you should be able to gauge your knowledge retention level. Should you find
points in the summary that you do not fully understand, it would be a good idea
for you to revisit the details in the module.
Key Terms: This component can be found at the end of each topic. You should
go through this component to remind yourself of important terms or jargon used
throughout the module. Should you find terms here that you are not able to
explain, you should look for the terms in the module.
References: The References section is where a list of relevant and useful

textbooks, journals, articles, electronic contents or sources can be found. The list
can appear in a few locations such as in the Course Guide (at the References
section), at the end of every topic or at the back of the module. You are
encouraged to read or refer to the suggested sources to obtain the additional
information needed and to enhance your overall understanding of the course.
PRIOR KNOWLEDGE
No prior knowledge required.
ASSESSMENT METHOD
Please refer to myINSPIRE.

xiv  COURSE GUIDE
REFERENCES
Finney, R. L., Demana, F. D., Waits, B. K., & Kennedy, D. (2012). Calculus: A
complete course. Boston, MA: Pearson Learning.
Haeussler, E. F., Richards S. P., & Wood R. J. (2014). Introductory mathematical

analysis for business, economics, and the life and social sciences (13th ed.).
England: Pearson Education Ltd.
Lau, T. K., Phang, Y. N., & Wee, K. K. (2012). Business mathematics for UiTM.
Kuala Lumpur, Malaysia: Oxford-Fajar.
Peirce, C. S., & Eisele, C. (2016). Algebra and geometry. Berlin/Boston: De

Gruyter. eBook Academic Collection (EBSCOhost).
Soo T. Tan. (2013). Applied mathematics for managerial, life and social sciences
(6th ed.). Delmont USA: Cengage Learning.
TAN SRI DR ABDULLAH SANUSI (TSDAS) DIGITAL

LIBRARY
The TSDAS Digital Library has a wide range of print and online resources for the
use of its learners. This comprehensive digital library, which is accessible through
the OUM portal, provides access to more than 30 online databases comprising
e-journals, e-theses, e-books and more. Examples of databases available are
EBSCOhost, ProQuest, SpringerLink, Books24×7, InfoSci Books, Emerald
Management Plus and Ebrary Electronic Books. As an OUM learner, you are
encouraged to make full use of the resources available through this library.

Topic  Concepts in
Algebra
1
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Describe the various sets of real numbers;
2. Solve mathematical operations that involve polynomials; and
3. Express proper and improper fractions as partial fractions.
 INTRODUCTION
In this topic, we shall discuss various sets of real numbers. In addition, we will learn
about polynomials and equations. We will also learn about the operations of
polynomials and apply them to solve quadratic equations and partial fraction
problems.
1.1 SETS OF REAL NUMBERS

The numbers that we use can be classified into various categories. We call them
sets of numbers. Let us begin with a set of natural numbers. Natural numbers are
basic counting numbers as shown in the following:
N  {1, 2, 3, ...}

2  TOPIC 1 CONCEPTS IN ALGEBRA
Next, we will introduce a set of integers as follows:
Z = {0, ±1, ±2, ±3, …} = {..., –3, –2, –1, 0, 1, 2, 3, ...}
Note that integers include zero, positive and negative natural numbers, that is:
Z = N  {0}   N
where – N is a set of negative natural number. For convenience, Z+ denotes a set of

positive integers and Z– denotes a set of negative integers.
A set of real numbers, indicated by R, includes integers and all values in between,
for example, 1.22.
Rational numbers are numbers that can be written as the ratio of two integers. This
important set of numbers is defined as follows:
p 
Q   : p, q  Z, q  0
q 
p
This set is made up of numbers that can be written as the ratio of two integers ,
q
1 1
where q is non-zero. For example, ,  , 0, 1 are rational numbers. Any integer
3 3
a
is a rational number, that is, Z  Q since a  for all integers a.
1
Real numbers that are not rational numbers are called irrational numbers. 2,  ,
sin 27° are examples of irrational numbers. Irrational numbers are those that cannot
be written as a ratio of two integers and we denote the set of irrational numbers as
Q' .
Thus, we can conclude that a set of real numbers is a set that is made up of all
rational and irrational numbers, in other words, R  Q  Q' . It is easy to see that
N  Z  Q  R.

TOPIC 1 CONCEPTS IN ALGEBRA  3
SELF-CHECK 1.1
Provide:
(a) An integer which is not a natural number.
(b) A rational number that is not an integer.
(c) A real number that is not a rational number.
1.2 POLYNOMIALS
A monomial is expressed in the form of:
axk
where a is a constant, x is an unknown (or a variable) and k  0 is an integer. a is

referred to as the coefficient of the monomial. We can compute the sum or the
difference of any two monomials such as axk and bxk and the results of these
operations are also monomials. These operations are performed by using a
distributive property as shown in Example 1.1:
Example 1.1
4 x2  2 x2  (4  2) x2  6 x2 and 3x2  5x 2  (3  5) x 2  2 x 2
A polynomial in a single variable is an algebraic expression in the following form:
an x n  an 1 x n 1  ...  a1 x  a0
where an , an1 , ..., a1 , a0 are constants, n  0 and x is a variable. The constants

an , an1, ..., a1, a0 are coefficients of the polynomial and when an  0, the
polynomial an x n  an 1 x n 1  ...  a1 x  a0 is called a polynomial of degree n.
Each of the monomials in a polynomial is called a term of the polynomial.

Hence, a polynomial is an algebraic sum of monomials in which no variables appear

as denominators and all variables that do appear are raised only to positive integer
powers.
Often a polynomial is written in its standard form, with the highest degree of non-
zero term listed as the first, followed by the rest of the terms in descending order of
their degrees. The highest power in the polynomial is known as the degree of the
polynomial.
Table 1.1 shows a number of polynomials and some of the important properties of
each of the polynomials.
Table 1.1: Properties of Some Polynomials
Coefficient of Each of the Monomials

Polynomial Degree
x3 x2 x1 x0
2x3  3x  8  2x3  0x2  3x  8 2 0 3 8 3
2 x 2  11  0 x 3  ( 2) x 3  0 x  11 0 –2 0 11 2
 x  6  0 x 3  0 x 2   x  ( 6) 0 0  –6 1
4  4.1  4x0 0 0 0 4 0
Note: Until now, we have only used x to represent variables in equations and
polynomials. In reality, we can use any letters of the alphabet. Other letters that are
often used are y and z. All the polynomials in Table 1.1 are stated in terms of x.
For example, 7y3 – 3y + 4 is a polynomial of degree 3 with y as the variable.
And, 9z4 + 2z3 – 10, is a polynomial of degree 4 with the variable z.

Note: The polynomial of degree 0 (or degree zero) is called a constant. A

polynomial of degree 1 is called linear. A complete list of polynomials of degree 2
to 10 and degree 100 is shown in Table 1.2.
Table 1.2: Classifications of Polynomials by Degrees
Degree Name Example

0 (non-zero) constant 1
1 linear x+1
2 quadratic x2 + 1
3 cubic x3 + 1
4 quartic (or biquadratic) x4 + 1
5 quintic x5 + 1
6 sextic (or hexic) x6 + 1
7 septic (or heptic) x7 + 1
8 octic x8 + 1
9 nonic x9 + 1
10 decic x10 + 1
100 hectic x100 + 1
(a) Addition and Subtraction of Polynomials

The addition and subtraction of polynomials are performed by combining
monomials of the same degree. That is grouping monomials of the same
degree and combining them.
Example 1.2
(4 x 2  7 x  3)  ( x3  6 x 2  x  5)  x3  (4 x 2  6 x 2 )  (7 x  x)  (3  5)
 x3  (4  6) x 2  (7  1) x  (3  5)
 x3  2 x 2  8 x  2

Example 1.3
In this example, we find the difference between two polynomials. The first
step is to open up the brackets. When opening up the brackets, make sure the
signs of each of the terms of the second polynomial in brackets are changed
accordingly in view of the negative sign before the bracket.
(3x 4  4 x3  3 x 2  x  1)  ( x 4  3x3  x 2  5 x  9)
Signs changed
 3x 4  4 x3  3x 2  x  1  x 4  3 x3  x 2  5 x  9
 (3  1) x 4  (4  3) x3  (3  1) x 2  (1  5) x  1  9 Grouping like terms
 2 x 4  x3  2 x 2  4 x  10
(b) Multiplication of Polynomials

Multiplication of polynomials is handled by using the distributive properties
and applying the rules of exponents repeatedly.
Example 1.4
(3 x  2)(4 x 2  7 x  3)
 3 x(4 x 2  7 x  3)  2(4 x 2  7 x  3)  distributive properties
 3 x  4 x 2  3 x  7 x  3 x  3  2  4 x 2  2  7 x  2  3  distributive properties
 12 x3  21x 2  9 x  8 x 2  14 x  6  rules of exponents
 12 x3  29 x 2  5 x  6  combine like terms
(c) Few Common Products

There are several products of polynomials that are often used in algebra.
Among them are:
( x  a)( x  a)  x 2  a 2
( x  a) 2  x 2  2ax  a 2
( x  a) 2  x 2  2ax  a 2
( x  a)( x  b)  x 2  ( a  b) x  ab
These apply to any real numbers of x, a and b.

(d) Equations, Identities, Inequalities and Functions

Now, let us consider the following algebraic expressions:
(i) ( x  1)2  x  7
(ii) ( x  1)2  x2  2 x  1
(iii) ( x  2)  1
(iv) ( x  1)2
It is obvious that there are dissimilarities among the four expressions. Let us
discuss each of them in more detail:
(i) ( x  1)2  x  7
When we replace x with 1 on the left-hand side (LHS) of the equation

and then on the right-hand side (RHS) separately, we get
LHS  (1 + 1)2  22  4
RHS  1 + 7  8
Therefore, LHS  RHS.
Observe what happens if we replace x with 2:

LHS  (2 + 1)2  32  9
RHS  2 + 7  9
Therefore, LHS  RHS.
Notice that expression (i) can be rearranged as follows:

x2 + 2x + 1  x + 7
 x2 + x – 6  0
Therefore, (x + 3)(x – 2)  0

It is obvious that LHS  RHS only when
x + 3  0 i.e. x  3
or x – 2  0 i.e. x  2
Therefore, (x + 1)2  x + 7 is only true when x  3 or x  2. This equation

is not true for any other values of x.
Expressions such as (i) is called an equation and an equation is only

true for several values of the unknown.
The process of obtaining the values for the unknown is called solving
the equation.
(ii) (x + 1)2  x2 + 2x + 1
When we replace x with 4, we see that

LHS  (4 + 1)2  52  25
RHS  42 + 2(4) + 1  25
Therefore, LHS  RHS when x  4.
When we replace x with 2, we get

LHS  (2 + 1)2  (1)2  1
RHS  (2)2 + (2)(2) + 1  1
Therefore, LHS  RHS when x  2.

In fact, LHS  RHS for all values of x. This is clearly shown in

Figure 1.1 for squares with sides equal to x + 1.
Figure 1.1: Squares with sides that equal to x + 1
Both of the rectangles shown in Figure 1.1 are identical and hence their
areas are also identical. Therefore ( x  1)2  x 2  2 x  1 for all values of
x and (x + 1)2 is said to be identical with x2 + 2x + 1.
Such a relation is called an identity when both sides of the equations

are the same for any values of the unknown.
In such cases, the symbol  is used to represent identities. For example,

identity (ii) can be written as:
( x  1)2  x2  2 x  1
Note: Not all equations are identities.

(iii) (x – 2) > 1
Such an expression is to be read as “x minus two is greater than one.”

The symbol > means “is greater than” and the symbol < means “is less
than”. It is clear that this expression is different from expressions (i) and
(ii) and it is called an inequality.
(x  2) will take values greater than 1 when x takes values greater than
3. In other words, if
(x – 2) > 1
then
x>3
The solution is a half-open interval such that all points in the interval
satisfy the condition (x – 2) > 1; that is, there is an infinite set of values
of x that satisfies inequality (iii).
3 x
The solution to an inequality is an interval or several intervals of values

of the unknown (x in this case).
(iv) (x + 1)2
This expression is not related to any other relations or expressions and

it can assume various values. Its value depends on the values assigned
to x. For example, if x equals to 2, the values of (x + 1)2 is (2 + 1)2  9
and if x equals to 3, (x + 1)2 is (3 + 1)2  4.

1.3 FACTORING POLYNOMIALS

In this subtopic, we will learn how to factorise polynomials, in particular,
polynomials of degree 2. In other words, quadratic expressions.
The factorisation of a quadratic expression is a process of finding two linear

expressions such that the product of these expressions produces the original
quadratic expression. Let us look at several examples as follows:
Example 1.5
Factorise the following:
(a) x2 + 5x
(b) 3x2 + 9
(c) 4x2 – 9
Solution
(a) Factorise the common factor, i.e. x

x2 + 5x = x(x + 5)
(b) Factorise the common factor, i.e. 3

3x2 + 9 = 3(x2 + 3)
(c) Change to square numbers
4x2 – 9 = (2x)2 – (3)2

= (2x – 3) (2x + 3)

Example 1.6
(a) Factorise x 2  4 x  5
Solution
x 2  4 x  5  ( x  p)( x  q)  x 2  px  qx  pq  x 2  ( p  q) x  pq
Equate the coefficients of x and the constant in order to obtain

p + q = 4 and pq = –5.
pq p q p+q Check:
x 5
–5 –5  1 –4
x –1
5  –1 4
x2 + 4x – 5
There are two ways to obtain the pq and we choose p + q = 4.
When p = 5, q = –1,
x 2  4 x  5  ( x  p)( x  q)  ( x  5)( x  1)
(b) Factorise x 2  3x  2
Solution
x2  3x  2  ( x  p)( x  q)  x2  ( p  q) x  pq

p + q = 3 and pq = 2.
pq p q p+q Check:
x 1
2 12 3
–3 x 2
–2  –1
x2 + 3x + 2
There are two ways to obtain pq and we choose p = 1 and q = 2.
Therefore, x 2  3x  2  ( x  p)( x  q)  ( x  1)( x  2).

Example 1.7
(a) Factorise 3x2  4 x  4
Solution
3x 2  4 x  4  (mx  p)(nx  q)  mnx 2  (mp  nq) x  pq

mn = 3, mq + np = 4 and pq = –4.
m n p q mq + np
Check:
3 1 –4 1 3 – 4 = –1
3x –2
4 –1 –3 + 4 = 1
x 2
2 –2 –6 + 2 = –4
–2 2 6–2=4 3x2 + 4x – 4
There are four possibilities to obtain pq = –4. Choose mp + nq = 4.
Then m = 3, n =1, p = –2, q = 2. Therefore, 3x 2  4 x  4  (3x  2)( x  2).
(b) Factorise 2 x 2  7 x  3
Solution
2 x 2  7 x  3  (mx  p)(nx  q)  mnx 2  (mp  nq) x  pq

mn = 2, mq + np = 7 and pq = 3.
m n p q mq + np Check:
2 1 3 1 2+3=5 2x 1
1 3 6+1=7 x 3
2x2 + 7x + 3
There are two possibilities to obtain pq = 3. Choose mq + np = 7.
Then m = 2, n =1, p = 1, q = 3. Therefore, 2 x 2  7 x  3  (2 x  1)(x  3).

Example 1.8
(a) Factorise 3x2  12 x  12
Solution
Step 1
Factorise 3 since 3 is a common factor.
3x 2  12x  12  3( x 2  4 x  4)
Step 2
Factorise the RHS and simplify.
 3( x  2)( x  2)
(b) Factorise p2 + 2mp + 2p + 4m
Solution
Step 1
Factorise the common factor for the first two terms.
p2 + 2mp + 2p + 4m = p (p + 2m) + 2p + 4m
Step 2
Factorise the common factor for the last two terms.
p2 + 2mp + 2p + 4m = p (p + 2m) + 2 (p + 2m)
Step 3
Factorise the common factor (p + 2m).
p2 + 2mp + 2p + 4m = (p + 2) (p + 2m)

1.4 PARTIAL FRACTIONS

x2  3
The ratio of two polynomials such as , where both the numerator and
2 x3  5
denominator are polynomials is called a proper fraction when the degree of the
numerator in the polynomial is smaller than the degree of the denominator in the
polynomial. On the other hand, if the degree of the numerator in the polynomial is
greater than or equal to the denominator in the polynomial, the resulting ratio
function is called an improper fraction.
4 3 1 1
Remember that an improper fraction such ascan be written as  1  . The
3 3 3
x 4
2
same method can be used to change an improper fraction such as 2 to the
x 1
following form:
x2  4 x2  1  3 x2  1 3 3
  2  2  1 2
x 1
2
x 1
2
x 1 x 1 x 1
3 x
Consider a function such as f ( x)   2
x  2 x 1
f ( x) can be written as a single fraction with a common denominator as shown

here:
3 x 3( x 2  1)  x( x  2) 4x2  2 x  3
f ( x)    
x  2 x2  1 ( x  2)( x 2  1) ( x  2)( x 2  1)
Sometimes we need to reverse the operation, that is, we need to write the
polynomial ratio as a summation of two or more polynomial ratios. The reverse
4x2  2x  3
process of “taking the fraction apart” into the sum of simpler
( x  2)( x 2  1)
fractions as shown here,
4x2  2x  3 3 x
  2
( x  2)( x  1) x  2 x  1
2
is called “decomposing the fraction into partial fractions.”

1.4.1 The Cover-up Rule

When the original fraction is a proper fraction, then the resulting partial fraction is
also a proper fraction.
x2
In other words, a fraction such as can be written as
( x  3)( x  2)
A B

x 3 x 2
x2
and can be written as
( x  3)( x 2  4)
A Bx  C
 2
x  3 ( x  4)
where A, B and C are constants that need to be determined.
The method to find these constants depends on the factor of the denominator of the
polynomials involved.
Example 1.9
x2
Express in partial fractions.
( x  3)( x  2)
Solution
In this example, we have proper fractions with linear factors (where the polynomials
are of the first order). Therefore, partial fractions are also proper fractions. Observe
that the numerators of the partial fractions are made up of constants only because
the denominators are linear polynomials.
x2 A B
 
( x  3)( x  2) x  3 x  2

or
x2 A( x  2)  B ( x  3)

( x  3)( x  2) ( x  3)( x  2)
It is obvious that the denominators of both sides of this identity are identical. Hence,
the numerator of this identity must also be identical.
In other words, x + 2  A(x  2) + B(x  3)
This identity is true for any value of x.
If we choose x  2 (to eliminate A), we have
2 + 2  A(0) + B(2  3)
or
B  4
Now, let us choose x  3 (to eliminate B this time), we have
3 + 2  A(3  2) + B(0)
or
A5
Now replace the values into the constants A and B. The result is the original proper
fraction which can be written as the following partial fractions:
x2 5 4
 
( x  3)( x  2) x  3 x  2

Example 1.10
2
Express as partial fractions.
( x  1)( x 2  1)
Solution
Observe that the denominator in this example has a quadratic factor or a polynomial
of degree 2. When such a factor exists, the resulting partial fractions can be a degree
1 polynomial (that is, one degree lesser than the degree of the denominator in the
polynomial). Hence, we need to find the constants A, B, and C such that,
2 A Bx  C
  2
( x  1)( x  1) ( x  1) ( x  1)
2
or
2 A( x 2  1)  ( Bx  C )( x  1)

( x  1)( x 2  1) ( x  1)( x 2  1)
In other words,
2  A( x2  1)  ( Bx  C )( x  1) ............ (*)
Setting x  1 (to eliminate B and C) in equation (*) gives us
2  A(12 + 1)
or
A1

We will not have any value for x that will eliminate A (because no real value of x
can satisfy x2 + 1  0).
A simple choice that will eliminate B is x  0. Substituting this value in equation

(*), we get
2  A(1) + C(–1)
Substituting A with 1 (the value obtained earlier) we have
2  1(1)  C
or
C  1
To find the value of the constant B, we can substitute any other value for x (best to
choose a small value for x in order to simplify the calculation). Let us say we choose
x  1, we have
2  A((–1)2 + 1) + (B(–1) + C)(–1 – 1)
or
2  2A + 2B  2C
Since we have already determined that A  1 and C  1, then B  1
Therefore,
2 1 x 1
  2
( x  1)( x  1) ( x  1) ( x  1)
2

1.4.2 The Combine Method

The method that we have used so far to determine the constants in a partial fraction
is called the cover-up rule.
Another method is by expanding the right-hand side of equation (*) on page 18,
which produces
2  Ax 2  A  Bx2  Bx  Cx  C
or
2  ( A  B) x 2  (  B  C ) x  ( A  C )
This is an identity. Hence, the coefficients of x2, x and the constants in both sides
of the identity must be identical. By comparing the coefficients for each of them,
we have
x2 :0A+B
x : 0  B + C
x0 (or 1) : 2  A  C
The values for A, B and C can be found by solving the three equations.
Example 1.11
x
( x  1)( x  2) 2
Solution
Observe that in this case, the second factor of the denominator is a repeated factor
as ( x  2)2  ( x  2)( x  2).
Generally, any repeated factor of the form (ax + b)2 in the denominator will give
A B
rise to two partial fractions of the form and .
( ax  b) ( ax  b) 2

Hence,
x A B C
  
( x  1)( x  2) 2
( x  1) ( x  2) ( x  2) 2
In other words,
x  A( x  2)2  B( x  1)( x  2)  C ( x  1)
This is valid for all values of x.
Let us choose x  2 (to eliminate A and B) and we will get
2  A(0)2 + B(1)(0) + C(2  1)
or
C2
Now let x  1 (to eliminate B and C) and we will have
1  A(1 – 2)2 + B(0)(1 – 2) + C(0)
or
A1
Finally, let us choose x  3 and we will get
3  A(3 – 2)2 + B(3 – 1)(3 – 2) + C(3 – 1)
or
3  A + 2B + 2C
Substituting A  1 and C  2 obtained earlier will give us
3  1 + 2B + 4
or
B  1

Therefore,
x 1 1 2
  
( x  1)( x  2) 2
( x  1) ( x  2) ( x  2) 2
Note:
Using a similar technique, a repeated factor (ax + b)3 in the denominator will give
A B C
three partial fractions of the form , and .
( ax  b ) (ax  b) 2
(ax  b)3
1.4.3 Improper Fractions

Let us take a look at some examples that explain the improper fractions.
Example 1.12
x3  3
( x  1)( x  1)
Solution
Observe that in this case, we have an improper fraction since the degree of the
numerator in the polynomial is greater than the degree of the denominator in the
polynomial. For such cases, we need to divide the numerator by the denominator in
order to obtain a polynomial plus a proper fraction.
x
2 3
x 1 x  3
x3  x
x3  Remainder

The division stops at that level because the remainder is a degree 1 polynomial (and
is less than the degree of the divisor). Hence, the original expression can be written
as
x3  3 x3
 x
( x  1)( x  1) ( x  1)( x  1)
A B
 x 
( x  1) ( x  1)
x( x  1)( x  1)  A( x  1)  B( x  1)

( x  1)( x  1)
Therefore,
x3  3  x( x  1)( x  1)  A( x  1)  B( x  1)
Substituting x  1 gives 4  2B or B  2.
Substituting x  1 gives 2  2A or A  1.
Thus,
x3  3 1 2
 x 
( x  1)( x  1) ( x  1) ( x  1)
ACTIVITY 1.1
For further understanding, visit the following website and share your
thoughts in the myINSPIRE online forum regarding the partial fractions
calculator:
https://www.symbolab.com/solver/partial-fractions-calculator

EXERCISE 1.1
1. Write the following expressions as partial fractions:

x 1
(a)
( x  2)( x  2)
x3
(b)
x ( x  1)
x2
(c)
( x  1)( x  1)
2. Determine the values of constants A, B and C in the following

identity:
3x A B C
  
( x  1)( x  2)( x  3) ( x  1) ( x  2) ( x  3)
x3
3. Assume that f ( x)  . Express f ( x) as partial
( x  4)( x 2  2)
fractions.
 Monomial is an algebraic expression of the form axk , where a is a constant, x is

an unknown (or a variable) and k  0 is an integer.
 Polynomial is an algebraic expression of the form
an x n  an 1 x n 1    a1 x  a0
where an , an1,, a1, a0 are constants, n  0 and x is a variable.
 The constants an , an1,, a1, a0 are known as the coefficients of the polynomial
and when an  0, the polynomial an x n  an 1 x n 1    a1 x  a0 is called a
polynomial of degree n.

 The process of writing an expression as a product of two or more factors is

called factorisation.
 Important formulas:
– a2 + 2ab + b2 = (a + b)(a + b) = (a + b)2
– a2  2ab + b2 = (a  b)(a  b) = (a  b)2
– a2  b2 = (a + b)(a  b)
Denominator Monomial
Equation Numerator
Factorisation Partial fractions
Functions Polynomial
Identity Real numbers
Inequalities
1. Write the quadratic equation with the following roots:

(a) 3 (repeating)
(b) j and k
x 1
2. State the expression as partial fractions.
x  x  5
x3
3. Obtain the partial fractions of .
 x  2 x
4. Solve 2 x 2  x  6  0 without using the quadratic formula.

Aufmann, R. (2005). Algebra: Beginning and intermediate. Boston, MA: Houghton

Mifflin.
Merecek, L. (2017, March 14). Intermediate algebra. Retrieved from

https://openstax.org/details/books/intermediate-algebra

Gruyter. eBook Academic Collection (EBSCOhost).
Ratti, J. S., & McWaters, M. (2008). College algebra. Boston, MA: Pearson
Addison-Wesley.

Topic  Linear and
Quadratic
2 Functions
LEARNING OUTCOMES
1. Identify linear and quadratic functions;
2. Find the slope of a line;
3. Determine whether two lines are parallel or perpendicular;
4. Sketch the graphs for linear and quadratic functions; and
5. Find the intersection point between two functions.
 INTRODUCTION
At the beginning of the 17th century, Gottfried Wilhelm Leibniz introduced the
term “function” to the mathematical vocabulary. The concept turned out to be one
of the most fundamental mathematical concepts. In general, a function is a special
type of input-output relation that expresses how the amount of one quantity (the
output) depends on another quantity (the input). A function is a rule that assigns
each value of x (input) to only one value of y (output) which is denoted by the
symbol f (other symbols such as g and h are also used). Usually, the symbol x is
used to represent an independent variable as it is free to take on any value while the
symbol y is used to denote a dependent variable as its value depends on the value
taken by x.
y = f  x 

or  read as “y is a function of x”
y = g  x  

28  TOPIC 2 LINEAR AND QUADRATIC FUNCTIONS
2.1 LINEAR EQUATIONS AND GRAPH

SKETCHING
A linear function graph is a straight line.
SELF-CHECK 2.1
Is linear equation a function? Explain.
2.1.1 Linear Equations

A linear equation is an equation where the highest power of x is equal to 1.
General form: y = mx + c, where m is the slope and c is the y-intercept.
Example 2.1
Obtain the slope and the y-intercept for each of the following linear equations:
(a) y = 6 – 3x (b) 2y + 6x = 9
Solution
Express the following equations in the general form, i.e. y = mx + c. Then, calculate
the value for m (scalar for x) and the y-intercept, i.e. the value of c.
(a) y  6  3x
(General form)
y  3x  6
Therefore, m = –3 and c = 6.
(b) 2 y  6x  9
2 y  6 x  9
(General form)
9
y   3x 
2
9
Therefore, m = –3 and c  .
2

TOPIC 2 LINEAR AND QUADRATIC FUNCTIONS  29
2.1.2 Slope
If two points A (x1, y1) and B (x2, y2) are given, a slope can be derived by using the
following formula:
y2  y1
m
x2  x1
Example 2.2
Find the slope for each line that connects the two given points:
(a) A (1, 4) and B (–2, 5)
(b) C (0, –3) and D (7, –1)
(c) E (–6, 6) and F (1, 6)
Solution
54
(a) m
2  1
1

3
1   3
(b) m
70
1  3

7
2

7
66
(c) m
1   6 
0

7
0

ACTIVITY 2.1
What is the significance of a linear equation? Discuss your findings with

your coursemates in the myINSPIRE forum.
2.1.3 Types of Straight Lines

There are various types of straight lines as illustrated in Figures 2.1, 2.2, 2.3 and
2.4. Let us look at each type of straight line.
(a) Horizontal Line

 y=a
 Parallel to the x-axis
 Its slope is zero
Figure 2.1: Horizontal line
(b) Vertical Line

 x=b
 Parallel to the y-axis
 Its slope is undefined
Figure 2.2: Vertical line

(c) Ascending-slant Line

 y = mx + c
 Ascending line from left to right
 Its slope is positive
Figure 2.3: Ascending-slant line
(d) Descending-slant Line

 y = mx + c
 Descending line from left to right
 Its slope is negative
Figure 2.4: Descending-slant line
2.1.4 Graph Sketching

The following are the steps for sketching a linear function graph:
(a) Find two different points that are on the line and plot them.
(In general, these are the y-intercept and x-intercept.)
The y-intercept can be obtained by substituting x = 0 into the equation and

calculating the corresponding value for y. The x-intercept can be obtained by
substituting y = 0 into the equation and calculating the corresponding value
for x.
(b) Connect the two points to form a straight line.

Example 2.3
Sketch the graph for each of the following linear functions:
(a) y = 2x 1
(b) y = 4x
Solution
(a) y = 2x  1
(i) The first point: Find the y-intercept
Let x = 0, y  2(0)  1
y  1
Hence, the first point is (0, 1).
(ii) The second point: Find the x-intercept
Let y = 0, 2 x  1  0
2x  1
1

2
1 
Hence, the second point is  ,0  .
2 
Figure 2.5 illustrates the graph of y = 2x – 1.
Figure 2.5: The graph of y = 2x – 1

(b) y = 4x
(i) The first point: Find the y-intercept
Let x = 0, y  4(0)
y0
Hence, the first point is (0, 0).
(ii) The second point: Find any other point besides the x-intercept (as it is
the same as the y-intercept)
Let x = 2, y  4(2)
y  8
Hence, the second point is (2, 8).
Figure 2.6 shows us the graph of y = –4x.
Figure 2.6: The graph of y = –4x

2.2 PARALLEL AND PERPENDICULAR LINES

Parallel lines are two lines that are always the same distance apart, lying on the
same plane, having the same slope and never intersecting each other. Figure 2.7
shows two lines, L1 and L2, are parallel.
Two lines are said to be parallel if and only if they have the same slope.
Figure 2.7: Parallel lines
Example 2.4
Is line 2y – 3x + 6 = 0 parallel to line 4y = 6x + 3?
Solution
Find the slope for each line:
2 y  3x  6  0 4 y  6x  3
2 y  3x  6 6 3
y x
3x 4 4
y 3
2 3 3
y x
3 2 4
 m1 
2 3
 m2 
2
Since they have the same slope, these two lines are parallel.

Example 2.5
Find an equation of a straight line that passes through point (–2, 10) and parallel to
another straight line 5x – y = 0.
Solution
Determine the slope for line 5x – y = 0
5x  y  0
 y  5 x
y  5x
 m5
The equation of a straight line is y = mx + c (The slope for this equation is also 5
since the slope of the two lines is the same).
Now, substitute m = 5 into equation y = mx + c, i.e. y = 5x + c
Since this line passes through point (–2, 10), substitute x = –2 and y = 10 into
y = 5x + c and you will get:
10  10  c
10  10  c
 c  20
The equation of a straight line that we are looking for is y = 5x + 20
Now we know when two lines are said to be parallel. But how about perpendicular
lines? Let us find out.

Perpendicular lines are two or more lines that intersect at a 90-degree angle, like
the two lines, L1and L2, shown in Figure 2.8.
Two lines are said to be perpendicular if and only if the product of the two slopes
is –1.
Figure 2.8: Perpendicular lines
Example 2.6
Determine whether the straight line y – 2x = 1 is perpendicular to 2y + x = 2.
Solution
Calculate the slope for each line and multiply them.
y  2x  1 2y  x  2
y  2x 1 2 y  x  2
 m1  2 x
y 1
2
1
 m2 
2
Since the multiplication of the two slopes is equal to –1, therefore, the two lines are
perpendicular to each other.

Example 2.7
Find an equation of a straight line that passes through point (1, 2) and perpendicular
to a straight line x + 5y = 2.
Solution
Determine the slope for line x + 5y = 2
x  5y  2
5y  x  2
x 2
y 
5 5
1
 m1 
5
Find the slope of the required line, which is m2 .
 1
    m2   1 (The multiplication of the two slopes is –1 since the two lines
 5
are perpendicular.)
m2  5
Now, substitute m = 5 into equation y = mx + c, i.e. y = 5x + c
This line passes through point (1, 2). So, we substitute x = 1 and y = 2 into y = 5x + c
2  5(1)  c
2  5c
25  c
3  c
Therefore, the equation of the straight line that we are looking for is y = 5x – 3.
ACTIVITY 2.2
If the product of two slopes is equal to 1, are the lines perpendicular?

Explain.

EXERCISE 2.1
1. For each of the following equations, determine the slope and the
y-intercept:
x
(a) y 1 (b) y = –5 – 5x
2
(c) y = –3x (d) 3y = 5 – 2x
2. Find the equation of a straight line with slope –1 that passes through
point (3, 2).
3. Given two points A (2, 4) and B (5, 12), determine the equation of a
straight line that passes through them.
4. Find an equation of a straight line that passes through point

(2, 1) and is parallel to line 2y + x = 5.
5. Obtain the equation for a straight line that passes through point
(3, –2) and is perpendicular to line 3x – y + 3 = 0.
EXERCISE 2.2
Sketch a graph for each of the linear functions below:

x
(a) y = 3x + 2 (b) y
2
(c) 3y + 2x = 2

2.3 QUADRATIC EQUATIONS AND GRAPH

SKETCHING
The general form of a quadratic equation is y = ax2 + bx + c where a, b and c are
real numbers and a  0. The highest degree for x in a quadratic equation is 2.
The graph of a quadratic function is a parabola. The direction in which the parabola
opens depends on the value of a. If a is positive, the parabola opens upward and the
function has a minimum value. Take a look at Figure 2.9.
Figure 2.9: Positive quadratic function graph
On the other hand, if a is negative, the parabola opens downward and the function
has a maximum value as shown in Figure 2.10.
Figure 2.10: Negative quadratic function graph

The following are steps for sketching the graph for the quadratic function
f (x) = ax 2 + bx + c:
(a) Determine the direction in which the parabola opens by observing the value
of a.
(b) Find the vertex (x, y) using this formula:
b 4 ac  b 2
x , y
2a 4a
(c) Find the y-intercept at which x = 0.
Substitute x = 0 into the quadratic function.
f ( x)  ax 2  bx  c
f (0)  a(0) 2  b(0)  c

c
Hence, (0, c) is the y-intercept.
(d) Find the x-intercept (if it exists).
The graph crosses the x-axis when y = 0, i.e. when ax2 + bx + c = 0.
This equation can be solved by factoring or using the following quadratic
formula:
b  b 2  4ac
Quadratic Formula: x 
2a
Whether the graph crosses the x-axis or not depends on the value of b 2  4ac.
(i) When b 2  4ac > 0, the graph crosses the x-axis at two points;
(ii) When b 2  4ac = 0, the graph crosses the x-axis at only one point; and
(iii) When b 2  4ac < 0, the graph does not cross the x-axis.
(e) Plot all the predetermined points from steps (a) to (d). Draw a smooth curve
as it passes through the various points.

Example 2.8
Sketch the graph for each of the following quadratic functions:
(a) f ( x) = x 2 ă 4 x
(b) f ( x) = 3 – 2 x – x 2
(c) f ( x) = 2 x 2 + 2 x + 1
Solution
(a) Determine the values of a, b and c from the function f ( x ) = x 2 – 4 x,
where a = 1, b = 4, c = 0
(i) The value of a is positive, hence the parabola opens upward.
(ii) The vertex (x, y)
b 4ac  b 2
x , y
2a 4a
2
  4  4 1 0    4 
 , 
2 1 4 1
4 0  16
 , 
2 4
2 ,  4
Therefore, the vertex is (2, 4).
(iii) The y-intercept is the value of c.
c=0
Therefore, the y-intercept is (0, 0).

(iv) The x-intercept is when f (x) = 0
x (x – 4) = 0
Based on the factored method,
x (x – 4) = 0
x = 0, x=4
or based on the quadratic formula:
b  b2  4ac
x
2a
b 2  4ac   4    4 1 0 
2
 16  0
 16
  4   16
x
2 1
44
x
2
44 44
x , x
2 2
x  4, x  0

(v) Thus, there are two x-intercepts, i.e. (0, 0) and (4, 0).
Therefore, Figure 2.11 is the graph of f (x) = x2 − 4:
Figure 2.11: The graph of f (x) = x2 − 4
(b) f (x) = 3  2x  x2, where a = –1, b = –2, c = 3
(i) The value of a is negative, thus the parabola opens downward.
b 4ac  b 2
x , y
2a 4a
  2  4  1 3   2 
2
x , y
2  1 4  1
2 12  4
x , y
2 4
16
x  1 , y
4
y4
Hence, the vertex is (–1, 4).

(iii) The y-intercept is the value of c.
c=3
(iv) The x-intercept is when f (x) = 0.
3 – 2x – x2 = 0
Based on the factored method,

(3 + x)(1 – x) = 0
3 + x = 0, 1 – x = 4
x = –3, x = 1
(v) Therefore, Figure 2.12 show us the graph of f (x) = 3 – 2x – x2
Figure 2.12: The graph of f (x) = 3 – 2x – x2

(c) f (x) = 2x 2 + 2x + 1, where a = 2, b = 2, c = 1
(i) The value of a is positive, thus the parabola opens upward.
b  b 
x , y f 
2a  2a 
2 1
x , Substitute x   into the function
2  2 2
2  1
x y  f  
4  2
2
1  1  1
x , y  2    2   1
2  2  2
1
y  2   1 1
4
1
y
2
 1 1
Hence, the vertex is   , 
 2 2
The y-intercept is the value of c.
c=1
(iii) Therefore, the y-intercept is (0, 1)
The x-intercept is when f (x) = 0
2 x2 + 2x + 1 = 0

(iv) Use the quadratic formula method,
b  b 2  4ac
x
2a
b 2  4ac  2 2  4  2 1
 48
 4
b2 – 4ac < 0 This means, the graph has no x-intercept.
(v) The graph of f (x) = 2x2 + 2x + 1 is illustrated in Figure 2.13:
Figure 2.13: The graph of f (x) = 2x2 + 2x + 1
ACTIVITY 2.3
Why do you think that the quadratic equation has the shape of a parabola?
Share your answer in the myINSPIRE forum.

EXERCISE 2.3
Sketch a graph for each of the following quadratic functions:

(a) f (x) = x2 – 6x + 5
(b) f (x) = x2 + 4
(c) f (x) = – x2 – 2x – 3
(d) f (x) = x2 – 16
(e) f (x) = (x – 1)(3 – x)
2.4 INTERSECTION POINT

The point of intersection between two functions can be obtained by solving the
equations simultaneously.
Example 2.9
Find the intersection point for the lines 2x + y = 4 and x – y = 2.
Solution
Solve the two equations simultaneously. Add the two equations together to
eliminate y.
2x  y  4
() x y 2
3x  6
x2
Now substitute x = 2 into equation x – y = 2
2 y  2
y0
Therefore, the point of intersection is (2, 0).

Example 2.10
Find the intersection point for the lines 2x + 4y = 6 and 6x + 3y = 18.
Solution
Equate the scalar of x in both equations by multiplying each term in equation
2x + 4y = 6 by 3.
Thus, we have 6x + 12y = 18
Then subtract this equation from the other to eliminate the variable x.
6 x  12 y  18
( ) 6 x  3 y  18
9y  0
y0
Substituting y = 0 into equation 2x + 4y = 6
2 x  4(0)  6
2x  6
x3
Hence, the point of intersection is (3, 0).
Example 2.11
Find the intersection point(s) for the curves y = 4 x ă x 2 and y = x 2 ă 6.
Solution
Solve the equations y = 4 x ă x 2 and y = x 2 ă 6.
4x  x2  x2  6
4 x  x2  x2  6  0
4x  2 x2  6  0 (Divide each term by 2)
2 x  x2  3  0

a = –1, b = 2, c = 3 (Apply the quadratic formula)
2  4  4  1 3
x
2  1
2  16
x
2
2  4
x
2
2  4 2  4
x , x 
2 2
2 6
x , x 
2 2
x  1 , x 3
Hence, the intersection points are (–1, –5) and (3, 3).
Example 2.12
Find the intersection point(s) for the curve x2 + y – 3 = 0 and the line 2x + y = 0.
Solution
Solve the equations x2 + y – 3 = 0 and 2x + y = 0
Substitute 2x + y = 0 i.e. y = –2x into x2 + y – 3 = 0
x2  y  3  0
x2  2 x  3  0
(Factorise the equation)
( x  3)( x  1)  0
x  3, x  1
Insert x = 3 and x = –1 into y = –2x
When x = 3, y = –2(3)
y = –6

When x = –1, y = –2(–1)
y=2
Thus, the intersection points are (3, –6) and (–1, 2).
ACTIVITY 2.4
1. When two graphs cross each other, what can we say about their
respective values of x and y at the intersection point? Discuss.
2. For further discussions on function, refer to the following website

and share your findings in the myINSPIRE forum:
http://mathworld.wolfram.com/Function.html
EXERCISE 2.4
Find the intersection points for each of the following equations:

(a) 2x + y = 10 and 6x + y = 14
(b) 3x + y – 2 = 0 and 3x – 4y + 8 = 0
(c) 2x – 3y = 7 and 3x + 2y = 4
(d) y = 8 – x2 and 4x – y + 11 = 0
(e) y = 2x2 – 3x and y = x2 – 2
(f) y = x2 + 6x + 2 and y = 2x2 + 2x + 5

MULTIPLE CHOICE QUESTIONS 2.1
1. Form the linear equation for a line that passes through point 3,  1
and having slope –7.
A. y = –7x + 21 B. y = 7x – 22
C. y = –7x + 20 D. y = 3x + 7
2. Which pair of lines are parallel?

A. L1 : 2 y  3 x  13 , L 2 : 3 y  2 x  3
B. L1 : 2 x  2 y  1 , L2 : y  x  9
C. L1 : y  3x  7 , L2 : y  3x  7
D. L1 : 3x  y  7  0 , L2 : x  y  1  0
3. Determine the graph that represents a line having slope –3.

4. Let y = f (x) be a quadratic function.
Which of the following statements is false?

A. The parabola opens downward when the scalar of x is negative.
B. The y-intercept is obtained by evaluating f (0).
C. The vertex is maximum when the parabola opens downward.
D. The highest power of an independent variable for a quadratic
function is two.
5. Which graph represents f (x) = 6 + 5x + x2?
A. B.
C. D.

 If y is a function of x and is written as y = f (x), then there exists a unique value

for y for every value of x.
 A linear function is classified as a degree 1 polynomial function. Hence, it is

also known as a polynomial linear.
 A quadratic function is classified as a degree 2 polynomial function.
Function Parabola
Intersection point Quadratic function
Linear function

Mifflin.
Larson, R. (2004). College algebra: Graphing approach. Boston, MA: Houghton

Mifflin.


Gruyter. eBook Academic Collection (EBSCOhost)
Addison-Wesley.

Topic  Application of
Linear and
3 Quadratic
Functions
LEARNING OUTCOMES
1. Identify demand and supply functions;
2. Calculate the market equilibrium point;
3. Identify cost, revenue and profit functions;
4. Analyse break-even point; and
5. Find the maximum or minimum value of a function.
 INTRODUCTION
There are many applications of linear and quadratic functions in our daily lives.
However, in this topic, only their economic applications will be discussed. The
discussion of market equilibrium point involves the demand and supply functions
and their intersection point. Likewise, the discussion of break-even point analysis
involves the cost, revenue and profit functions. The shape of the quadratic function
graph is a parabola. So, the maximum or minimum value of a quadratic function
can be obtained from its turning point.

TOPIC 3 APPLICATION OF LINEAR AND QUADRATIC FUNCTIONS  55
3.1 DEMAND AND SUPPLY FUNCTIONS

For every price level of a product, there exists a matching quantity of the product
that is demanded by consumers over a period of time. In general, the higher the
price is, the lower the quantity desired and when the price falls, the quantity
demanded will rise up again. Suppose the price for a unit of a product is p and the
matching demanded quantity is q, then the equation that links p and q is called a
demand equation. This demand function has a negative slope. Take a look at
Figure 3.1.
Figure 3.1: Demand function
Generally, the higher the unit price of a product is, the more quantity will be offered
by the producer. When the price falls, the supplied quantity will also be reduced. If
the price for a unit of a product is p and the matching supplied quantity is q, then
the equation which links p and q is known as a supply equation. This supply
function has a positive slope as shown in Figure 3.2.
Figure 3.2: Supply function

56  TOPIC 3 APPLICATION OF LINEAR AND QUADRATIC FUNCTIONS
3.1.1 Market Equilibrium Point

The market reaches its equilibrium point when both supply and demand are equal
as illustrated in Figure 3.3. The equilibrium point can be derived by obtaining the
intersection point between the demand and supply equations.
Figure 3.3: Market equilibrium point
Example 3.1
Determine which of the following equation is demand equation and which is supply
equation. Then, obtain the market equilibrium point.
(a) p + 2q = 100
(b) 3p = q + 125
Solution:
Determine the slope for each equation.
(a) p  2q  100
p  – 2q  100
The slope is –2 (negative).
Thus, the equation p + 2q = 100 is a demand equation.

(b) 3 p  q  125
q 125
p 
3 3
1
The slope is (positive).
3
Thus, the equation 3p = q + 125 is a supply equation.
Solve both equations to obtain the market equilibrium point.
p  2q  100 (multiply each term by 3)

3 p  6q  300
( ) 3 p  q  125
(subtract this equation from the other to eliminate p)
7 q  175
q  25
Insert q = 25 into equation p + 2q = 100
p  2(25)  100
p  50  100
p  50
 The market equilibrium point is (25, 50).
Example 3.2
Given a demand function, qd = p2  100p + 2500 and a supply function
qs = 0.5p2 – 50.
(a) Determine the price at market equilibrium point if the price domain is
5  p  50.
(b) Find the quantity for such a price.

Solution:
(a) Equate the demand and supply functions to find the value for p.
p 2 – 100p + 2500 = 0.5p 2 – 50

p 2 – 0.5p 2 – 100p + 2500 + 50 = 0
0.5p 2 – 100p + 2550 = 0
a = 0.5, b = –100, c = 2550
b  b2  4ac
p
2a
b 2 – 4ac = (–100)2 – 4(0.5)(2550)

= 10000 – 5100
= 4900
  100   4900
p
2  0.5 
100  70
p
1
p  100  70 , p  100  70
p  170 , p  30
p = 170 does not lie in the given price domain, hence it is not the solution.
Therefore, the price at the market equilibrium point is RM30.
(b) Substitute p = 30 into the supply function.
q  0.5 p 2  50
 0.5(30) 2  50
 0.5(900)  50
 450  50
 400
The corresponding supply quantity is 400 units.

ACTIVITY 3.1
If you are an entrepreneur, would you be satisfied if the equilibrium point

is met? Elaborate your reason(s) and share them in the myINSPIRE
forum.
EXERCISE 3.1
1. Find the equilibrium point if the supply and demand equations of a

1 1
product are p  q  8 and p  q  12 , respectively.
300 180
2. Suppose the demand function is p2 – 400 and the supply function is

p2  40p + 2600. Determine the price and quantity at which the
market reaches its equilibrium point.
3.2 COST AND REVENUE FUNCTIONS

Fixed costs are costs that are independent of the production level such as insurance
cost. Variable costs are costs that vary with the production level, for example, raw
materials.
Total Cost = Fixed Costs + Variable Costs
Total revenue is the money received from the products sold.
Total Revenue = Unit Price  Total Quantity Sold
Profit is the difference between total revenue and total cost.
Profit = Total Revenue  Total Cost

Example 3.3
A factory produces a certain type of product worth RM200. The costs of its raw
materials and labour are RM30 and RM15 per unit, respectively. Fixed costs are
RM100,000.
(a) Obtain the function for profit.
(b) Find the profit if 10,000 units are sold.
Solution:
(a) Suppose q is the quantity of products sold.
= 200q
Total Cost = Variable Costs + Fixed Costs
= 30q +15q + 100,000
Hence, Profit = Total Revenue – Total Cost
= 200q – (30q +15q + 100,000)
= 200q – 30q – 15q – 100,000
= 155q – 100,000
(b) Substitute q = 10,000 into 155q – 100,000

Profit = 155(10,000) – 100,000
= 1,550,000 – 100,000
= 1,450,000
Hence, if 10,000 units are sold, the profit earned will be RM1,450,000.

Example 3.4
Assume that the cost of producing 10 units of a given product is RM40, while that
of 20 units is RM70. If the cost C is linearly related to production quantity q, find:
(a) The linear equation that links C to q.
(b) The costs required to produce 35 units of the product.
Solution:
Linear equation: C = mq + k … (1)
Substitute q = 10, C = 40 and q = 20, C = 70 into equation (1) to form two equations,
i.e.
40 = 10m + k and 70 = 20m + k
Subtract one equation from the other to eliminate k and then obtain the value for m.
70  20m  k
( ) 40  10m  k
30  10m
3m
(a) Substitute m = 3 into 40 = 10m + k to derive the value of k.
40  10(3)  k
40  30  k
10  k
So, the linear equation becomes C = 3q + 10
(b) Substitute q = 35 into C = 3q + 10.
C  3q  10
 105  10
 115
Hence, it cost RM115 to produce 35 units of the product.

3.2.1 Break-even Point Analysis

Break-even point of a product is the level of production at which there is no profit
made or loss incurred. It is the point where total revenue equals total cost (see
Figure 3.4).
Figure 3.4: The graph for break-even point
TR = TC : Break-even point
TR < TC : Business suffering loss
TR > TC : Business generating profit
Example 3.5
A company is selling a product at the price of RM45 per unit. The variable cost per
unit is RM33, while fixed cost are RM450,000. How many units have to be sold to
break even?
Solution:
Break-even Point: Total Revenue = Total Cost
= 45q
Total Cost = Variable Costs + Fixed Costs
= 33q + 450,000

Therefore, 45q = 33q + 450,000

45q  33q = 450,000
12q = 450,000
q = 37,500
Hence, 37,500 units have to be sold to reach the break-even point.
SELF-CHECK 3.1
Which part of the graph in Figure 3.4 should be avoided by an

entrepreneur? Explain.
EXERCISE 3.2
1. Identify whether each of the following equations is a demand

equation or a supply equation. Then, find the corresponding price
and quantity at which the company breaks even.
(a) 2p = 100q  600
(b) p = 50q + 600
2. A company is producing a type of product with a selling price of

RM50 per unit. To produce one unit of the product, the company has
to use raw materials at a cost of RM40. The fixed costs are RM5,000.
If q represents the quantity of products sold, determine the:
(a) Revenue function
(b) Cost function
(c) Profit function
(d) Quantity to be sold to obtain the break-even point

3.3 MAXIMUM AND MINIMUM VALUES

The maximum value can be obtained from the turning point on the parabola which
opens downward and the minimum value can be obtained from the turning point on
the parabola which opens upward.
Example 3.6
A company learnt that the demand function for its product is p = 48 – 3q, where p
represents the unit price and q is the quantity demanded the product.
(a) Derive the revenue function.
(b) Determine the quantity in which the revenue is maximised.
(c) What is the maximum value of the generated revenue?
Solution:
(a) Total Revenue = Unit Price  Total Quantity Sold
R  pq
R  (48  3q)q
R  48q  3q 2
(b) The revenue function is quadratic, therefore its turning point (x,y) will be used
as it provides the maximum point. The x-coordinate is the quantity in which
the revenue is maximised.
R = 48q  3q2
where a = –3, b = 48, c = 0
Therefore:
b
q
2a
48

2  3
48

6
8
The quantity that will maximise the revenue is 8.
(c) Substitute q = 8 into the revenue function.
R  48q  3q 2
 48(8)  3(64)
 384  192
 192
Thus, the maximum revenue is RM192.
Example 3.7
Given a cost function, C = q2 – 6q + 16
(a) Determine the quantity for which the cost is minimised.
(b) What is the minimum value of the cost?
Solution:
(a) The cost function is quadratic, therefore its turning point (x, y) will be used as
it provides the minimum point. The x-coordinate is the quantity in which the
cost is minimised.
C  q   q 2  6q  16 where a  1, b  6, c  16
b
q
2a
  6 
q
2 1
q3
The quantity in which the cost is minimised is 3.

(b) Substitute q = 3 into the cost function.
C (q)  q 2  6q  16
 32  6(3)  16
 9  18  16
7
Hence, the minimum cost is RM7.
ACTIVITY 3.2
Is it possible for a quadratic function to have both minimum and

maximum values? Explain and share your answer in the myINSPIRE
forum.
EXERCISE 3.3
Company AB manufactures a product. Its demand function is given as

q = 1,850 – 5p, where p represents the unit price and q is the quantity
demanded for the product.
(b) Find the revenue, given that the unit price is RM5.
(c) Determine the price for which the revenue is maximised.
(d) What is the maximum value of the revenue?

MULTIPLE CHOICE QUESTIONS 3.1
1. A manufacturer sells a product at RM200 per unit. The labour cost

is RM15 per unit and the material cost is RM50 per unit. The rent of
the building is RM10,800 per month. Find the break-even quantity.
A. 5 B. 8 C. 46 D. 80
2. Given that the demand function is p2 – 200 and the supply function
is p2 – 20p + 1,400. What is the equilibrium price?
A. RM80 B. RM100 C. RM800 D. RM6,200
3. The demand equation for a certain product is given as p = 2,750 – 5q.
(a) Find the total revenue function.
A. 2,750q – 5 B. 2,750p – 5pq
C. 2,750q – 5q2 D. 2,750p – 5p2
(b) Determine the quantity that will maximise the total revenue.
A. 0 B. 25 C. 50 D. 275
(c) What is the maximum total revenue?
A. 0 B. RM2,750
C. RM378,125 D. RM753,500

 The two applications of the intersection point discussed in this topic are
determining market equilibrium point and break-even point.
 The market equilibrium point is obtained by solving the demand and supply
equations simultaneously.
 The break-even point is obtained by solving the revenue and cost equations
simultaneously.
 In this topic, we have covered the maximum value for the revenue function as
well as the minimum value for the cost function by using the turning point
method.
Break-even point Minimum value

Cost function Profit function
Demand function Revenue function
Equilibrium point Supply function
Maximum value
Kindsfather, W. L., & Parish, W. A. (2003). Business mathematics. Upper Saddle

River, NJ: Prentice Hall.
Miller, C. D., Salzman, S. A., & Clendenen, C. (2003). Business mathematics.

Boston, MA: Pearson Addison Wesley.

Topic  Matrices
4
LEARNING OUTCOMES
1. Explain the concept of matrix and the classification of matrices;
2. Define matrix addition, scalar multiplication and multiplication of
matrices and the properties related to these operations;
3. Calculate the determinant for square matrix using the cross
multiplication method and the cofactor expansion method;
4. Determine the inverse of an invertible matrix and use inverses to
solve the linear equation system; and
5. Apply Cramer’s rule to find the solution for a two-linear equation
system.
 INTRODUCTION
Data is an important source of information. Therefore, it is necessary for the data
to be arranged in an easily understood and straightforward manner. Matrix is one
method which is frequently used.
In economics, the matrix is used to formulate problems and displaying data. For
example, a manufacturer who produces products D, E and F could represent the
units of labour and materials required for one week’s production as shown in
Table 4.1.

70  TOPIC 4 MATRICES
Table 4.1: Manufacture of Products D, E and F

Product
D E F
Labour 10 12 16
Materials 5 9 7
10 12 16 
More simply, the data can be represented by the matrix A   
5 9 7
A matrix can be categorised into several classes or types. Later on, this topic will
discuss matrix operations, each with its own properties which differ from the
operations of real numbers. The application of a matrix is to solve simultaneous
equation systems. Two methods will be employed to solve the simultaneous
equation systems, which is the inverse matrix method and the Cramer’s rule. The
knowledge of finding the determinant of a given matrix is essential in order to apply
these methods.
A matrix is a rectangular array of numbers consisting of m horizontal rows and n

vertical columns, as shown here:
 a11 a12 ... a1n 

a a22 ... a2 n 
 21
 . . ... . 
 
 . . ... . 
 . . ... . 
 
 am1 am 2 ... amn 
This matrix is called an m  n (read as “m by n”) matrix or a matrix of order m  n.
For any matrices, the data has to be placed in a rectangular table form, as shown
here:
2 0 1 
 0 1 3
 

TOPIC 4 MATRICES  71
The above matrix consists of two rows and three columns. Hence, the dimension,
order, size or degree of the above matrix is 2  3. The dimension of a matrix is the
number of rows first, followed by the number of columns. The elements or entries
of the above matrix in the first row are 2, 0 and 1 while the elements for the second
row are 0, –1 and 3.
Generally, a matrix is denoted by a capital letter. Let us consider the following

matrix:
 a11 a12 a13 

A   a21 a22 a23 
 a31 a32 a33 
Based on matrix A above, we can conclude that A is a matrix with the dimension of
3  3 since there are 3 horizontal rows and 3 vertical columns. Each element of
matrix A is denoted by a variable with two subscripts. For example:
(a) a11 lies in the first row and the first column;
(b) a21 lies in the second row and the first column; and
(c) a32 lies in the third row and the second column.
The dimension of the matrix A can be written at the lower right side of the letter, in
the form of a subscript, i.e. A33.
In general, a matrix A with the dimension of m  n (matrix A with m rows and n

columns) is often written as Amn. The elements of matrix A are denoted by aij
where i = 1, 2, …, m and j = 1, 2, …, n.
SELF-CHECK 4.1
If numbers are arranged in a non-rectangular form, can that still be called

a matrix? Explain.

4.1 CLASSIFICATIONS OR TYPES OF MATRICES

Matrices can be categorised into several types based on its dimensions and
elements. Let us find out more about the types of matrices.
4.1.1 Row Matrix (Row Vector)

Row matrix or row vector is a matrix with only one row, as illustrated by the
following matrices:
(a) B13  1 0 1 (b) B14  1 3 2 1
4.1.2 Column Matrix (Column Vector)

A matrix with only one column is called a column matrix or column vector. The
following are samples of column matrices:
3
1  2
(a) L31   0  (b) L41   
1 
 3   
0 
4.1.3 Square Matrix

A matrix with equal numbers of rows and columns is called a square matrix. The
m × n matrix is square, if and only if, m = n. Examples of square matrices are as
follows:
3 2 1
 1 2 
(a) S 2 2   (b) S 33   3 1 0 
 4 0   2 1 4 
The elements on the main diagonal of any given square matrix are all the elements
which lie from the upper left corner to the lower right corner. The main diagonal
elements for matrix S22 above are 1 and 0 while the main diagonal of matrix S33
are 3, 1 and 4.

4.1.4 Diagonal Matrix

If a square matrix has at least one non-zero element on its main diagonal and all the
other elements are 0’s, the matrix is known as a diagonal matrix or aij = 0 for i ≠
j.
The following are examples of such matrices:
1 0 0 
1 0 
(a) P22    (b) P33  0 0 0 
0 1  
0 0 3 
4.1.5 Special Matrix

An identity matrix, denoted by I is the diagonal matrix whose main diagonal
entries are 1’s. Let us look at some examples of identity matrices:
1 0 0 
1 0 
(a) I 22   (b) I 33   0 1 0 
0 1 
 0 0 1 
A zero matrix or null matrix, denoted by 0 is the matrix when all the elements of
a matrix are set to 0. Examples as shown:
0 0
0 0 0 
(a) 032   0 0  (b) 023   
 0 0  0 0 0 
SELF-CHECK 4.2
If there exists only one element in a matrix, can the matrix be called a
square matrix? Explain.

EXERCISE 4.1
1. Given:
 3 1 6
(a) B   6 2  (b) C   1 5 8 (c) D  9 
 1 0   4 
State the order of each matrix.
a 0 0
2. Find the value(s) of a, that makes  0 0 0  a diagonal matrix.
 
 0 0 0 
1 0 0 
3. Is the matrix   an identity matrix? Clarify your answer.
0 1 0
4. Determine the classes for each of the matrices below:
0 0 0
0 0
0 0
(a) 
0 0 0
(b) 0
 
(c)  1 2 1 0
   2 
0 0 0
4.2 MATRIX OPERATIONS

In this subtopic, you will learn about the following matrix operations:
(a) Equality of matrix;
(b) Transpose;
(c) Matrix addition;

(d) Matrix subtraction;

(e) Scalar multiplication; and
(f) Matrix multiplication.
4.2.1 Equality of Matrix

Matrices A = [aij] and B = [bij] are equal if and only if they have the same order and
aij = bij for each i and j. Thus,
 1
5 2  5 0.5
  3 
1
0 1   0
 2
 2 
but [1 2] ≠ [1 2 0]
A matrix equation can be defined as a system of equation. For example, suppose

that
 3 q q  1  3 q 5 
 q  1 2r 
 p  1  r 2r q  4

By equating corresponding entries, we must have
a13 = q + 1, b13 = 5. Therefore a13 = b13, then
q 1  5
q  5 1
q4
a21  q 1, b21  r . Therefore b21 = a21, then
r  q 1
r  4 1
r 3

a 23  p  1, b23  q  4 . Therefore a 23  b23 , then
p 1  q  4
p  q  4 1
p  q 5
p  4  5  1
4.2.2 Transpose
Given a matrix Amn with elements aij where i = 1, 2, …, m and j = 1, 2, …, n. The
transpose matrix for Amn, which is denoted by AT nm is a matrix with elements aij
where i = 1, 2, …, n and j = 1, 2, …, m. In other words, we just reverse the order of
the row and column elements of matrix Amn so that the rows turn into columns and
columns into rows.
Example 4.1
2 3 1 2 1 0
(a) If A = 1 2 0 , then A =  3 2 1 
  T
   
 0 1 3   1 0 3 
 1 3
1 0 1
(b) If B =   , then B =  0 2 
T
3 2 0   1 0 
T
The transpose operation has the property of  AT  = A

4.2.3 Matrix Addition

Adding two or more matrices is only feasible if all the matrices are of the same
dimensions. The sum is obtained by adding the corresponding elements (i.e. the
elements that lie on the same position). The addition operation cannot be done if
the matrices have different dimensions.
Example 4.2
1 0   2 4   1 4 
(a)  2 2  +  1 3  =  1 5 
     
 2 2 0  1 2 0  3 4 0
(b)  4 1 3 +  3 2 0  =  7 1 3
     
2 3 7 1 3
(c) 1 5 + 3 1 3 , cannot be performed because the two matrices have
   
different dimensions.
4.2.4 Matrix Subtraction

Two or more matrices can be deducted from another, as long as they have the same
dimension. To perform the subtraction operation, the corresponding elements that
lie on the same position of the respective matrices are subtracted from the other.
This subtraction operation also cannot be performed if the dimensions of the
matrices are different.
Example 4.3
 3 0 1   0  2 5   3 2 4 
(a)  2 1 3    1 3 2    1 4 1 
     
 1 4 1  2 1 2   1 3 3
 2 3   7 1 3
(b)    , the subtraction cannot be carried out because the two
 1 5   3 1 3
matrices have different dimensions.

The properties of matrix addition and matrix subtraction are:
A B  B  A
A B  B  A
 A  B  C  A   B  C 
 A  B  C  A   B  C 
AO  O  A  A
AO  O  A
4.2.5 Scalar Multiplication

Scalar multiplication is obtained by multiplying each entry of the matrix by a scalar.
Example 4.4
1 0 
(a) If A   
 2 3
1 0 5(1) 5(0)   5 0 
5A  5  = = 
 2 3 5(2) 5(3)  10 15
3 0 1 
(b) If B =  2 1 3 
 1 4 1
 3 0 1   1(3) 1(0) 1(1)   3 0 1

 B  ( 1)  2 1 5  =  1(2) 1( 1) 1(5)  =  2 1 5 
  
 6 4 7   1(6) 1(4) 1( 7)   6 4 7 

4.2.6 Matrix Multiplication

Multiplication of two matrices is possible only if the number of columns in the first
matrix is the same as the number of the rows in the second matrix. Suppose the first
matrix is denoted by Amn and the second matrix is Bst. The multiplication of
Amn  Bst can be done if and only if n = s. The product of this multiplication is
another matrix (say C) with m rows and t columns. If AB exists, then
AB = Amn  Bst= Cmt
Generally, suppose that
b b12 b13 
a a12 a13   11
AB   11 b b22 b23 
 a21 a22 a23   21
 b31 b32 b33 
c c12 c13 
  11
 c21 c22 c23 
where:
c11  a11 b11  a12 b21  a13 b31

c12  a11 b12  a12 b22  a13 b32
c13  a11 b13  a12 b23  a13 b33
c21  a21 b11  a22 b21  a23 b31
c23  a21 b12  a22 b22  a23 b32
c12  a21 b13  a22 b23  a23 b33

Example 4.5
 1 1
 1 1  1 0 2 
Given A32   0 2  , B2 2  

 , and C 23   
 1 0   1 0   0 1 1
 (1)(1)  ( 1)( 1) (1)(1)  ( 1)(0) 

(a) AB  A32  B22   (0)(1)  (2)( 1) (0)(1)  (2)(0) 
 (1)(1)  (0)( 1) (1)(1)  (0)(0) 
 2 1
  2 0 
 
 1 1  3×2
(b) BA= B22  A32 is not possible because the number of columns in matrix B22
is not the same as the number of rows in matrix A32.
 (1)(1)  ( 1)(0) (1)(0)  ( 1)(1) (1)( 2)  ( 1)( 1) 

(c) AC33  A32  C23   (0)(1)  (2)(0) (0)(0)  (2)(1) (0)( 2)  (2)( 1) 
 (1)(1)  (0)(0) (1)(0)  (0)(1) (1)( 2)  (0)( 1) 
 1 1 1
  0 2 2 
 1 0 2 
Properties of matrix multiplication are:
A  BC    AB  C
A  B  C   AB  AC and  A  B  C  AC  BC
AB  BA
AI  IA  A
There are cases where the multiplication of two matrices is the matrix itself, i.e.
A  A = A. This matrix A is known as idempotent matrix.

Example 4.6
      
1 0 0 1 0 0  1 0 0  1 0 0
      
1 1 0 1 1  1 1  1 1
Given A =  0 , then AA = 0  0 A
 2 2  2 2  2 2  2 2
 1 1  1 1   1 1  1 1
0  0  0  0 
 2 2  2 2  2 2  2 2
Hence, A is an idempotent matrix.
SELF-CHECK 4.3
List several examples of idempotent matrices.
EXERCISE 4.2
1. Suppose:
 2 1  4 2 
 2 1 3  4 1 2     
A=  , B =  , C =  0 6  and D   3 5 
4 0 1  5 1 3   3 2   1 3 
   
Find:
(a) 3A (b) A+B (c) CD
(d) AB (e) (2A)(5C) (f) (2A  B)D
(g) (AT )A
2. Determine matrix A that satisfies the following equation:
 1 0   1 3
A  
 1 3  3 6 

4.3 DETERMINANT
The determinant is defined only for square matrices. The determinant of matrix A
is denoted by Aand has a scalar value. This subtopic will only emphasise on
obtaining the determinants for square matrices with the dimensions until 3  3.
Determinants are used to find the invertible matrices which are then used to
explicitly describe the solution to the linear equation system.
If A =  a11  is a square matrix of order 1, then A  a11.
a a 
Given matrix A22 =  11 12  . The determinant of a matrix can be obtained by
 a21 a22 
taking the difference between the multiplication of elements on the main diagonal
(a11 and a22) and that of the opposite diagonal ( a12 and a21 ). The determinant of the
matrix A22 is given by:
A22   a11  a22    a12  a21 
Example 4.7
 0 1 1 2 
If A =   and B =  0 1  , determine
2 4   
(a) |A| (b) |B| (c) |AB|
(d) |BA| (e) |A| |B| (f) |B| |A|
Solutions:
(a) |A| = 0(4) – (–1)(2) = 2
(b) |B| = 1(1) – 2(0) = 1
 0 1
(c) AB =   . Therefore, AB = (0)(8) – (–1)(2) = 2
2 8 

4 7
(d) BA =   . Therefore, BA= (4)(4) – (7)(2)
 2 4
= 16 –14
=2
(e) | A| | B| = (2)(1) = 2
(f) | B| | A| = (1) (2) = 2
 a11 a12 a13 

The determinant of matrix A33   a21 a22 a23  is obtained as follows:
 
 a31 a32 a33 
For entry a11, we delete the entries in row 1 and column 1, as shown next:
 a11 a12 a13 

a a23 
 21 a22
 a31 a32 a33 
a a23 
This leaves the matrix  22 of order 2. The determinant of this matrix is
 a32 a33 
called the minor of a11.
a21 a23 a a 22
Similarly, the minor of a12 is , and for a13 is 21 .
a31 a33 a31 a32
So, the determinant of any square matrix A of order 3 is given by:
a22 a23 a21 a23 a21 a22

A  a11  a12  a13
a32 a33 a31 a33 a31 a32
 a11  a22 a33  a23 a32   a12  a21a33  a23a31   a13  a21a32  a22 a31 

4.3.1 Minor of Element aij
The minor of the element aij is the determinant of the sub-matrix left after omitting
the i th row and j th column. For instance, suppose
1 4 1 
A   0 2 0 
 2 3 3 
Then, the element of minor is:
1 4 1
2 0
m11 (i.e. 1) = 0 2 0  = (2)(3) – (0)( –3) = 6
3 3
2 3 3
1 4 1
0 0
m12 (i.e. 4) = 0 2 0  = (0)(3) – (0)(2) = 0
2 3
2 3 3
1 4 1
0 2
m13 (i.e. 1) = 0 2 0  = (0)(3) – (2)(2) = – 4
2 3
2 3 3
1 4 1
4 1
m21 (i.e. 0) = 0 2 0  = (4)(3) – (1)( –3) = 15
3 3
2 3 3

1 4 1
1 1
m22 (i.e. 2) = 0 2 0  = (1)(3) – (1)(2) = 1
2 3
2 3 3
1 4 1
1 4
m23 (i.e. 0) = 0 2 0  = (1)( –3) – (4)(2) = –11
2 3
2 3 3
1 4 1
4 1
m31 (i.e. 2) = 0 2 0  = (4)(0) – (1)(2) = –2
2 0
2 3 3
1 4 1
1 1
m32 (i.e. –3) = 0 2 0  = (1)(0) – (1)(0) = 0
0 0
2 3 3
1 4 1
1 4
m33 (i.e. ) = 0 2 0 = (1)(2) – (4)(0) = 2
0 2
2 3 3
 6 0 4 
The minor matrix A is Minor A =  15 
1 11 .
 2 0 2 


4.3.2 Cofactor of Element aij
The cofactor of element cij is the minor of element mij multiplied by (–1)i+j. Hence,
the cofactor of element:
c11 = (–1)1+1  m11 = 1  6 = 6

c12 = (–1)1+2  m12 = –1  0 = 0
c13 = (–1)1+3  m13 = 1  (– 4) = – 4
c21 = (–1)2+1  m21 = –1  15 = –15
c22 = (–1)2+2  m22 = 1  1 = 1
c23 = (–1)2+3  m23 = –1  (–11) = 11
c31 = (–1)3+1  m31 = 1  (–2) = –2
c32 = (–1)3+2  m32 = –1  0 = 0
c33 = (–1)3+3  m33 = 1  2 = 2
 6 0  4
The cofactor matrix is cofactor A =  15 1 11 
 
 2 0 2 
The following steps are required to compute the determinant of a matrix using the
cofactor expansion method:
(a) Step 1: Select one row or column to perform cofactor expansion. In general,
we choose the row or column with many zeroes. In matrix A, the second row
has many zeroes. Therefore, choose the second row of matrix A to perform
the cofactor expansion.
(b) Step 2: Perform cofactor expansion by multiplying each element in the

selected row or column with its corresponding cofactor. Hence,
Determinant A = |A| = a21 c21 + a22 c22 + a23 c23

= 0(15) + 2(1) + 0(11)
= 0 + 2(1) + 0
=2

Note: The same value of the determinant will be obtained even though cofactor
expansion is performed on a different row or column.
The transpose of a cofactor matrix is an adjoint matrix.
Adjoint A  [Cofactor A]T

T
 6 0  4
  15 1 11 
 2 0 2 
 6 15 2
  0 1 0 
  4 11 2 
EXERCISE 4.3
1. Find the determinant for the following matrices:
 2 5  a b
(a) 1 3  (b) b a 
   
1 2 3 3 2 1 
(c) 2 3 0 (d) 0 3 2 
   
 3 0 0  0 0 3 
2. (a) Calculate the value for a, given that the determinant for
 1 a
 2 4  is 6.
 
a b
(b) Find the determinant for  1 0  .

 2 4 

4.4 INVERSE MATRIX

Inverse matrix is only defined for square matrix. However, not all square matrices
have an inverse. If the determinant of a square matrix is equal to zero, then the
matrix has no inverse. A matrix without an inverse is known as a singular matrix.
The inverse matrix of A is denoted by A1.
a a  1 a  a12 
Let A   11 12  and A  a11a22  a12a21 . Therefore, A1   22 
 a21 a22  A   a21 a11 
1
If A is a square matrix of order 3, then A1  × Adjoint A
A
 6 15 2
 
Let us now calculate the inverse matrix for  0 1 0
 4 11 2 

 15 
3 1
 6 15 2  2
 
1   1
1
A   0 1 0    0 0 
2   4 11
2
 2   
 2 11
 1 
2 
When matrix A is multiplied by its inverse A-1, the following properties are then
true:
(a) A  A1 = I (b) A 1  A = I

EXERCISE 4.4
1. Find the inverse (if there exist any) for the following matrices. Then,
prove that your answers are correct.
2 3 4 
 3 4  
(a)   (b) 0 0  1
 2 2 1
 2 1 
4 2 2 1 4 1
   
(c)   1 3 4  (d) 2 3 2 
 3 1 6   1 2 3 
  
2. Given:
2 3 1 1 1
A  . Find A and show that (A ) = A.
 4 5 
3. Suppose:
a b
B 
c d
(a) Determine B1 and state the properties required for the
existence of B1 .
(b) Verify BB 1 = B1 B = I.

4.5 SOLVING LINEAR EQUATION SYSTEM

USING MATRICES
In this subtopic, we shall illustrate methods by which matrices can be used to solve
a system of linear equations. The two methods are the inverse matrix method and
Cramer’s rule.
4.5.1 Matrix Equation

Systems of linear equations can be represented by using matrix multiplication. For
example, consider the matrix equation:
x
 1 4 2     4 
 2 3 1   y    3 
  z  
 
x  4 y  2z  4 
 2 x  3 y  z    3 
   
By applying the concept of equality of matrices, the corresponding entries must be

equal, so we obtain the following system:
x  4 y  2z  4
2 x  3 y  z  3
Hence, this system of linear equations can be expressed in the form of matrix
equation system AX = B. Where A is the matrix obtained from the coefficients of
the variables, X is a column matrix obtained from the variables and B is a column
matrix obtained from the constants.
Example 4.8
Given a two-linear equation system:
x  2y  0
2x  y  5

1 2   x  0 
It can be expressed as     
 2 1  y  5 
1 2  x 0 
where A    , X    and B    as a matrix equation system.
 2 1  y 5 
Example 4.9
Given a three-linear equation system:
2 x  y  3z  3
x  2y  z  4
2x  2z  0
2 1 3   x   3 
The matrix form is  1    
2 1  y    4  , where
2 0 2   z   0 

 2 1 3  x 3
A   1 2 1 , X   y  and B   4 
   
 2 0 2   z   0 
4.5.2 Inverse Matrix Method

A system of linear equations can be written in a matrix form, AX = B, where A is
the coefficient matrix. If we can determine the values of the entries in the unknown
matrix X, we have a solution to the system. An inverse of matrix A, A1 is used to
solve an equation of AX = B. Multiply both sides of the equation AX=B by A1,
A1  AX   A1B
 A A X  A
1 1
B
IX  A1B where I is an identity matrix. Then,
X  A1B is called the method of inverse to solve a system of linear equations.

Example 4.10
Solve x  2 y  3
2x  y  5
using the inverse matrix method.
Solution:
Step 1: Convert the equation into a matrix equation form, which is
1 2   x  0 1 2  x 0 
 2 1  y   5 where A   2 1 , X   y  and B  5
          
Step 2: Determine the inverse of matrix A, that is, A1
A  1 1   2  2   5
1 2
1  1 2  5 5
A1       
5  2 1  2 
1
 5 5 
Step 3: Use the formula X = A1B to obtain the solution:
1 2 
 x  5 5  0 
 y    
   2  1  5 
 5 5 
2
  
 1
Hence, solutions for the above simultaneous linear equations are x = 2,

y = 1.

Example 4.11
Solve 2 x  y  3 z  3
x  2y  z  4
2x  2z  0
using the inverse matrix method.
Solution:
Step 1: Firstly, we have to convert the equation into a matrix equation form, which
is
2 1 3   x   3 
1 2 1  y    4  , where

 2 0 2   z   0 
 2 1 3  x 3
A   1 2 1 , X   y  and B   4 
   
 2 0 2   z   0 
Step 2: Determine the inverse of matrix A i.e. A1. To do this we need to compute
its determinant, i.e.
1 2 1 1 2 2 2 3 3 2 2 3
A   1 1   2  1   0  1
2 2 2 2 1 1
A  1 1 2    1 2    2  2  2    3 2    0
A  1 0   2  10 
A  20

The minor elements are:
n11  – 4, n12 = 0, n13 = – 4, n21 = 2 and n22 = –10, n23  2
n31 = –5, n32 = –5, n33 = 5.
Therefore,
 4 0 4   4 0 4 
Minor A   2  10 2  , Cofactor A    2
  10 2 
 5 5 5   5 5 5 
 4 2 5 
Adjoint A   0  10 5 
  4 2 5 
Using the formula:
1
A 1   Adjoint A
A
 4 2 5 
1 
  0
 10 5 
20
 4 2 5 
1 1 1 
5 10 4 
 
1 1
 0 
 2 4
1 1 1
  
 5 10 4 

Step 3: Use the formula X = A1B to obtain the solution for:
1 1 1 
 4   3  1 
 x   5 10 
 y  0 1 1    
 4  2
   2 4
 z    0  1 
 1 1 1    
 
 5 10 4 
Thus, the solution for the given simultaneous equations are x = 1, y = 2 and z = 1.
4.5.3 Cramer’s Rule

Another method which can be applied to solve the simultaneous equation AX = B
is Cramer’s rule. The following steps have to be taken to solve a system of n linear
equations in n unknowns.
Step 1: Determine the determinant for coefficient matrix A, that is,A. If A=
0, Cramer’s rule is no longer applicable.
Step 2: Find Aiwhere Ai is the matrix formed when ith column in matrix A is
substituted by matrix B as shown:
 a11   b1  a1n 
a   b2  a2 n 
 21 
      
Ai  
      
 
       
 a1n   bn  a2 n 

ith column

Step 3: To obtain xi, use the following formula:
Ai
xi 
A
Example 4.12
Solve x  2 y  0
2x  y  5
using Cramer’s rule.
Solution:
1 2   x   0
Step 1: Determine A for      
 2 1  y   5
A = (1)(1) – (2)(2) = 5
Step 2: Find A1and A2.
0 2 
A1    . Therefore, A1= (0)( 1) – (2)(5) = 10
 5 1
1 0 
A2    . Thus, A2= (1)(5) – (0)(2) = 5
2 5

Step 3: Obtain the value for x and y.
A 1 10
x  2
A 5
A2 5
y   1
A 5
Example 4.13
Solve 2 x  y  3 z  3
x  2y  z  4
2x  2z  0
using Cramer’s rule method.
Solution:
2 1 3   x   3 
Step 1: Determine A for  1 2 1  y    4 

 2 0 2   z   0 
by using the cofactor expansion on the third row:
31 1 3 33 2 1
A  2  1   2  1
2 1 1 2
 2  1 1   2  3   2  2  2   1 1 
 2  5  2  5 
 20

Step 2: Find A1,A2 and A3.
3 1 3  2 3 3  2 1 3
A1   4 2  1  , A2   1 4  1  , A3   1 2 4 
 0 0  2   2 0  2   2 0 0 
3 3 3 1
A1  2   1    2   3  2     1  4     20
4 2
3 1 3 3 3 1 2 3
A2  2   1     2   1 
4 1 1 4
 2   3   1    3  4      2    2  4    3 1  
 2   15   2  5 
  40
3 1 1 3
A3  2   1   2    1   4    3  2     20
2 4
Step 3: Obtain the value for x, y and z.
A1 20
x  1
A 20
A2 40
y  2
A 20
A3 20
z  1
A 20

ACTIVITY 4.1
What are the advantages of using matrices to solve linear equation systems
compared to algebraic techniques (substitution/elimination)? Compile
your answer and share it with your course mates in myINSPIRE forum.
EXERCISE 4.5
1. Express the following linear equation systems in the form of matrix

equations. Subsequently, solve the equations by using the inverse
matrix method.
(a) x  2 y  14
2x  y  5
(b) x  2y  z  7
x y z  4
3x  y  z  2
2. Solve (1) using Cramer’s rule.
3. Solve the following equation system by using the appropriate

method:
3x  2 y  z  b1
3x  2 y  z  b2
x  y  z  b3
where:
(a) b1 = 2, b2 = 2, b3 = 4
(b) b1 = 8, b2 = 3, b3 = 6

MULTIPLE-CHOICE QUESTIONS 4.1
1 2  4 7
1. Given A    and B  3 1 . Find:
3 2.5  
(a) A + 2B
8 9 9 7 
A. 6 2 B. 3 0.5
   
6 3 9 11 
C.  3 4 D. 9 4.5
   
(b) B
4 3
A. 7 1 B. –25 C. –17 D. 17
 
T
3 1 2  4 
2. 2 0 4   
  2
8 
A. 4 B. Does not exist
 
 0 
16 
4
C. 16 4 0 D.  
 0 

 3 1 1
3. Given |A| = 6 and its cofactor is  3 
1 1 . Find the inverse
 6 4 2 

of A.
 3 3 6  3 1 1
 1 1 4 1
A.   B.   3 1 1
6
 1 1 2   6 4 2 
3 3 6  3 1 1

1
C.   1 1 4 D. 6  3 1 1
6
 1 1 2   6 4 2 
 1 1 1  x 1
4.
     
Given A  3 2 1 , X  y , B  2 , and A  1
     
2 5 3  z   1
Calculate the value of z.
A. ă18 B. ă10 C. ă7 D. 18

 A matrix is an m by n, or simply, an mn set of quantities arranged in a

rectangular form where m is the number of rows and n is the number of columns.
These quantities are normally written inside a big bracket and the matrix is
normally denoted by a capital letter like A such that
First nth
column column
 a11 a12  a1n  First row

 
a a22  a2 n 
A   21
   
 
 am1 am 2  amn  mth row
 The quantity aij is called the element of the matrix. For example, a11 is the
first element of the matrix.
 The element aij represents the element at row-i and column-j of the matrix,
that is,
aij
ith row jth column
 A matrix is said to be of the order m  n if it has m rows and n columns. If the

number of rows and columns are identical ( m  n ), the matrix is then called a
square matrix. For a square matrix, the diagonal that contains the elements of
a11, a22 ,, ann is called the principal, main or leading diagonal.

 The types of matrices are as follows:
 Zero Matrices
A matrix of any size (or order) with every element equal to zero is called
the zero or null matrix. It is normally written as O.
 Diagonal Matrices
A square matrix with the elements of aii  0 and aij  0 for all i  j is
called a diagonal matrix.
 Identity Matrices
A square matrix of order n  n with every element of its principal diagonal
equal to 1 and all the others equal to 0 is called the identity or unit matrix.
It is often denoted by the notation I.
– Triangular Matrices
A square matrix A is called an upper-triangular matrix if aij  0 for every
i  j and a lower-triangular matrix if aij  0 for every i  j.
 Equality of Matrices
Two matrices A and B of the same order is said to be equal if and only if
aij  bij for all i and j.
 The operations of matrices are as follows:
 Addition of Matrices
The sum of two equal size matrices A   aij  and B  bij  is the matrix
C  cij  such that c ij  a ij  b ij for all i and j.
 Subtraction of Matrices
The difference of two equal size matrices, A   aij  and B  bij  , is
defined as A  B  A  (1) B   aij  bij  for all i and j.

– Matrix Multiplication by a Scalar

If A   aij  and k is a scalar, then the multiplication of k and the matrix A
is the matrix B  bij  such that b i j  k a ij for all i and j.
 Matrix Multiplication
c
The product of a row vector  a b  and a column vector   is defined as
d 
c
 a b     ac  bd .
d 
 If A is a matrix of order m  p and B is a matrix of order p  n, then the

product AB is possible and is a matrix of order m  n.
Order of matrix A Order of matrix B

23 3 2
number of column of A  number of row of B
 Generally, matrix multiplication has the following properties:

– AB  BA : non-commutative law
– A( BC )  ( AB )C : associative law
A( B  C )  AB  AC 
–  : distributive law
( A  B)C  AC  BC 
 If there are two matrices, A and B, that satisfy AB  BA  I , then the matrix B
is called the inverse of A and is written as B  A 1 . On the other hand, the matrix
A is the inverse of B and is written as A  B 1 . The matrix A and its inverse
satisfy the multiplicative commutative law where AA 1  A 1 A  I . So does
matrix B where BB 1  B 1 B  I .
 Finding the inverse of 2  2 matrices.
a b 1 1  d b 
If A    and   ad  bc  0 then A   .
c d   c a 

 Elementary Row Operations (ERO) are operations performed on the rows of

matrices as follows:
 Interchange any two rows (row i and row j) and it is denoted as:
Ri  R j
 Multiply row i by a scalar k (k  0) and it is denoted as:

Ri  kRi
 Add multiple of row j to row i and it is denoted as:

Ri  Ri  kR j
Cramer’s rule Matrix multiplication

Determinant Matrix subtraction
Equality of matrix Scalar multiplication
Inverse matrix Transpose
Matrix Types or classifications of matrices
Matrix addition

Mifflin.

Addison-Wesley.

Topic  Exponential
and
5 Logarithmic
Functions
LEARNING OUTCOMES
1. Identify exponential and logarithmic functions;
2. Identify the graph of an exponential and a logarithmic function;
3. Calculate equations using properties of exponentials;
4. Calculate equations using properties of logarithms; and
5. Solve application problems.
 INTRODUCTION
Logarithmic functions are related to exponential functions. Each logarithmic
function is the inverse of its corresponding exponential function and the exponential
function is the inverse of its corresponding logarithmic function. This topic will
discuss the relationship between these two functions and their applications.

TOPIC 5 EXPONENTIAL AND LOGARITHMIC FUNCTIONS  107
5.1 PROPERTIES OF EXPONENTIALS

A function f is called an exponential function if it has a form f (x) = ax where the
base a is positive, with a  0 and its exponent x is any real number.
1. a xa y  a x  a y 2. a x b x  ( ab) x
x
ax ax  a 
3. y
 a x y 4.  
a bx  b 
5. (a x ) y  a x y 1
6. a x 
ax
7. a0  1 8. a1  a
x
 a
y x
y
9. a 
Example 5.1
Find the values of:
3
(a) 3 32 3
(b) 2 3
(2 ) (c) 42
3 2
2 1 3
(d) 3 (e)   (f)  
2 2
Solutions:
3
2   4
3 3
(a) 3 32 3
(b) 2
2 23
(c) 42 
 3 2  3  26  23
 31  64 8
3

108  TOPIC 5 EXPONENTIAL AND LOGARITHMIC FUNCTIONS
3 2
1 3 32
1
 
3
(d) 32  (e)    2
1
(f)   
32 2 2 22
1  23 1 1
  
9 9 4
8
4

9
Example 5.2
Solve:
1
(a) 82 x = 2 (b) e2 x 1 
e
1 2
(c) 2 x 2 x1  (d) 3x – 94 x = 0
8
Solutions:
82 x  2 1
(a) (b) e 2 x 1 
e
2 
3 2x
 2 (Equate the base) e 2 x 1  e 1
26 x  21 (Compare the exponent) 2 x  1  1
6x  1 2 x  2
1 x  1
x
6

1 2
3 x  94 x  0
(c) 2 x 2 x 1  (d)
8
 
2 4 x
2 x  x 1  23 3x  32
2 x  1  3 x2  8  2 x
2 x  2
x2  2 x  8  0
x  1
 x  2  x  4   0
x  2, x  4
ACTIVITY 5.1
Between linear and exponential functions, which one has the most rapid
change in values? Share your answer in myINSPIRE forum.
EXERCISE 5.1
Find the values of:

1
(a) 33 –4
(b) 2 8
–3
(c) 27 3
2
3
 1 3 1
(d)   (e)   (f) 42  2–1
8 5

EXERCISE 5.2
Solve:
x
1
(a)    16 (b) e x 3  1 (c) 4x – 2x+1 = 0
4
(d) 2 x8 x = 2 (e) 5 x 
1
25
(f)  ex
2
e 
x 2

1
e
5.2 EQUATIONS AND EXPONENTIAL GRAPHS

There are two general shapes of exponential graphs. The shape depends on the base
value of the exponential function.
(a) Figure 5.1 shows the graph of y = ax where a > 1
Figure 5.1: The graph of y = ax where a > 1

(b) Figure 5.2 illustrates the graph of y = ax where 0 < a < 1
Figure 5.2: The graph of y = ax where 0 < a < 1
The following are the properties of the graph of an exponential function

f (x) = ax:
(i) The y-intercept on the exponential graph is (0,1);
(ii) There is no x-intercept;
(iii) If a > 1, the graph is increasing from left to right; and
(iv) If 0 < a < 1, the graph is decreasing from left to right.

Example 5.3
Sketch the graph for y = 2x
Solution:
(a) Construct a table consisting of several values of x and y.
(b) Plot the points on a plane.
(c) Draw a smooth curve through all the plotted points (see Figure 5.3).
(i) x –2 –1 0 1 2 3
1 1
y 1 2 4 8
4 2
(ii)
Figure 5.3: The graph of y = 2x
Example 5.4
x
 1
Sketch the graph for y   
 2
Solution:
(a) x –3 –2 –1 0 1 2
1 1
y 8 4 2 1
2 4

(b)
x
1
Figure 5.4: The graph of y   
2
5.3 LOGARITHMIC FUNCTIONS

A logarithmic function with base a is written as loga where a > 0, a  1. y is the
logarithm for x with base a, denoted by y = loga x.
y = loga x ay = x
Logarithmic Form  Exponential Form
Example 5.5
Convert the following equations from logarithmic to exponential forms:
(a) log3 9 = 2
(b) log10 y = 4
(c) log2 8 = 3
Solution:
(a) 32 = 9
(b) 104 = y
(c) 23 = 8

Example 5.6
Convert the following equations from exponential to logarithmic forms:
(a) 25 = 32
(b) 100 = 1
(c) 53 = y
Solution:
(a) log2 32 = 5
(b) log10 1 = 0
(c) log5 y = 3
Logarithm with base 10 is known as common logarithm and is written as

log10 x = log x = lg x.
Meanwhile, logarithm with base e is called natural logarithm and is denoted by

loge x = ln x.
ACTIVITY 5.2
Is a logarithmic function a reciprocal operation for an exponential

function? Why? Share your answer in myINSPIRE forum.

5.4 PROPERTIES OF LOGARITHMS
1. loga a = 1
2. loga mx = xlog a m
logb m
3. loga m = (Logarithm-based interchangeable formula)
logb a
4. loga M + loga N = loga MN

M
5. log a M  log a N  log a
N
6. If loga M = loga N then M = N
Example 5.7
Using the properties highlighted in Subtopic 5.4, find the value for:
1
(a) log3 81 (b) ln (c) log a1
e
(d) log 4 2 (e) log 4 2  log 4 8 (f) log6 54  log6 9
Solutions:
4 1 1
(a) log 3 81 = log 3 3 (b) ln  log e
e e
= 4 log 3 3
 log e e 1
= 4 1  1log e e
=4  11
 1

(c) log a 1  log a a 0 (d) log 4 2  log 4 4

 0  log a a  1
 log 4 42
0
1
 log 4 4
2
1

2
54
(e) log 4 2  log 4 8  log 416 (f) log 6 54  log 6 9  log 6
9
 log 4 42  log 6 6
 2 log 4 4 1
 2 1
2
Example 5.8
Find the value of x.
(a) log (2x + 1) = log (x + 6) (b) logx (6 – x) = 2
(c) log3 x = 2 (d) log x = –1
(e) log2 x4 + log2 4x = 12 (f) log x – log (x – 1) = log 4
Solution:
(a) log  2 x  1  log  x  6 

2x 1  x  6
2x  x  6 1
x5

(b) log x  6  x   2
x2  6  x
x2  x  6  0
 x  3 x  2   0
x  3, x  2
x  3 will be ignored as the base x  0
So, x  2
(c) log3 x  2 (d) log x  1

x  32 log10 x  1
x9
x  101
(e) log 2 x 4  log 2 4 x  12 (f) log x  log  x  1  log 4
log 2 x 4  4 x   12  x 
log    log 4
 x 1 
log 2 4 x5  12
x
4
4 x5  212 x 1
212 x  4x  4
x5 
22 3x  4
x5  210 4
x
1 3
 
x  210 5
x
4
3
x  22
x4

EXERCISE 5.3
1. Convert the following equations from logarithmic to exponential

forms:
(a) log5 25 = 2 (b) log2 y = x (c) log10 0.1 = 1
2. Convert the following equations from exponential to logarithmic

forms:
1
(a) 102 = 100 (b) a0 = 1 (c) 23 =
8
3. Using the properties of logarithms, find the following values:
(a) log2 16 (b) log8 2 (c) ln e
1 1
(d) log4 (e) ln 1 + 1g 100 (f) log2  log2 4
4 4
4. Find the value of x.
1
(a) log2 x = 0 (b) logx  1
3
(c) log8 64 = x  1 (d) logx (2x + 8) = 2
(e) log x + log (x – 15) = 2 (f) log3 (x + 1) = log3 (x – 1) + 1
ACTIVITY 5.3
1. What is the value of e? What is the significance of e?

2. How does a logarithmic function simplify the calculations involving
exponential function? Post your answers in myINSPIRE forum for
sharing and comparison.

5.5 EQUATIONS AND LOGARITHMIC GRAPHS

There are two general shapes of logarithmic graphs. The shapes depend on the base
value of the logarithmic functions (refer to Figure 5.5 and 5.6).
(a) y = loga x, where a > 1
Figure 5.5: The graph of y = loga x, where a > 1
(b) y = loga x, where 0 < a < 1
Figure 5.6: The graph of y = loga x, where 0 < a < 1

The following are the properties of the graph of logarithmic function f (x) = log a x:
(a) There is no y-intercept;
(b) The x-intercept on the logarithm graph is (1,0);
(c) If a > 1, the graph is increasing from left to right; and
(d) If 0 < a < 1, the graph is decreasing from left to right.
Example 5.9
Sketch the graph for y = log2 x.
Solution:
(a) Convert the equation from logarithmic to exponential form.
(b) Construct a table consisting of several values of x and y.
(c) Draw a smooth curve through all the points (see Figure 5.7).
(i) y  log 2 x
2y  x
(ii) x –2 –1 0 1 2 3
1 1
y 1 2 4 8
4 2
(iii)
Figure 5.7: The graph of y = log2 x

Example 5.10
Sketch the graph for y = log1/2 x
Solution:
y
1
(a)   x
2
(b) x –3 –2 –1 0 1 2
1 1
y 8 4 2 1
2 4
(c)
Figure 5.8: The graph of y = log1/2 x

5.5.1 Application on Growth and Decay Processes

Exponential functions can be applied in growth and decay processes. The formula
for total growth is:
P = P0 ert
where
P = Number of residents after t years
P0 = Number of original residents
r = Percentage (rate) of growth
t = Time period
Example 5.11
Suppose the total number of residents in a given town is 20,000 and the rate of
growth of the residents is 5% per year.
(a) Determine the total number of residents in this town six years from now.
(b) How many years will it take for the number of residents to double?
Solution:
(a) Substitute all the given values into the formula to find the value of P.
P = Po ert , where Po = 20,000, r = 5% and t = 6.
= 5/100
= 0.05
P = 20,000e0.05(6)
= 20,000e0.3
= 26,997
Hence, the number of residents in this town six years from now will be 26,997.

(b) Doubling the number of residents implies P = 2Po.
Substitute P with 2Po and r = 0.05 into the formula to find the value for t.
P  Po ert
2 Po  Po e0.05t
2 Po
 e0.05t
Po
2  e0.05t
log e 2  0.05t
ln 2  0.05t
ln 2
t
0.05
t  13.863
The town’s population will double in about 14 years.
The formula for decay process is
P = P0 e –rt
Example 5.12
Suppose a radioactive element is going through power decay after t days based on
an exponential function, P = 100 e 0.075t. How much of the quantity is left after
20 days?
Solution:
Substitute t = 20 into the formula to find the value for P.
P = 100e 0.075(20)
= 100e1.5
= 100(0.22313)
= 22.313

5.5.2 Investment with Compound Interest

The total amount of money, denoted by S, is the compound amount for a sum of
money P compounding after the n th year, where the interest is payable k times at
the rate of r% per annum, is given by the formula as follows:
nk
 r
S  P 1  
 k
where:
S = Compound amount or the prospective value
P = Initial investment or the principal value
r = Interest rate per annum
k = Number of interest paid (compound) in a year
n = Number of year(s)
Example 5.13
If RM1,000 is invested at the rate of 6% per annum, compounding (payable) on a
quarterly basis, what would the total amount be after 10 years?
Solution:
S = ?, P = 1000, r = 6% = 0.06, k = Every quarter = 4  a year, n = 10
Then
nk
 r
S  P 1  
 k
10  4 
 0.06 
S  1, 000  1  
 4 
S  1, 000 1.015 
40
S  1, 000 1.81402 
S  1,814.02

Example 5.14
Determine the principal amount of a loan, given that the prospective amount
payable after 10 years is RM21,589.20 and the compound rate of 8 per cent per
annum, compounding (payable) on a yearly basis.
Solution:
S = 21,589.20, P = ?, r = 8% = 0.08, k = Every year = 1  a year, n = 10
Then
nk
 r
S  P 1  
 k
10 1
 0.08 
21,589.20  P 1  
 1 
21,589.20  P 1.08 
10
21,589.20  P  2.15892 
21,589.20
P
2.15892
P  10, 000
ACTIVITY 5.4
Visit the following websites to have a better understanding of logarithms
(a) https://openstax.org/details/books/intermediate-algebra
(b) https://www.khanacademy.org/math/algebra2/exponential-and-
logarithmic-functions

EXERCISE 5.4
1. (a) Given that the price of one-acre land is increasing at a rate of

2% per year, how long will it take for the price to increase to
RM30,000, if its current value is RM10,000?
(b) Due to the economic downfall, the total number of residents in a

township dropped at the rate of 1% per year. If the initial
population was 100,000 residents, what is the population after
three years?
2. Determine the compounded amount, given the following principal

values, compound interest rates and time period:
(a) RM5,500; 6% per annum compounding on a monthly basis;

18 months.
(b) RM10,000; 8% per annum compounding yearly; five years.
(c) RM7,600; 7.26% per annum compounding on a quarterly

basis; five years and eight months.
(d) RM2,300; 5.75% per annum compounding daily; 150 days.

(assume 1 year = 365 days)
3. Determine the principal amount, given the following compound

values, compound interest rates and time period:
(a) RM16,084.82; 6% per annum compounding monthly;

14 months.
(b) RM10,197.02; 5.3% per annum compounding daily; 135 days.

(assume 1 year = 365 days)
(c) RM6,657.02; 12.6% per annum compounding every two

months; ten months.
(d) RM36,361.63; 7.2% per annum compounding every three

months; five years and three months.

1
1
1. Is x 2  ?
2
x
A. Yes B. No
2. Given 2x 8x = 4. Solve x.
1 1 1
A. B. 0 C. D.
2 4 2
1
3. Calculate 1  lg .
10
A. 10 B. 1 C. 1 D. 10
4. Suppose RM5,000 is invested for 10 years at 6% per annum,

compounded every four months. Calculate the compounded amount.
A. 5,000(1.02)30 B. 5,000(1.02)40
C. 5,000(1.015)30 D. 5,000(1.015)40
5. The population of a city, P, after two years starting from year 1990
is given as P = 100,000e0.06. What is the growth rate?
A. 1% B. 2% C. 3% D. 6%
 The natural exponential function is a function that is defined as

f ( x ) = ex, e  2.7183 y = f ( x ) = ex is defined for all real numbers and its range
is all positive numbers.
 The inverse of the function f ( x ) = ex is the function g(x) = loge x. This function
is known as the natural logarithmic function and is normally denoted
only as ln x.

Compound interest Growth

Decay Logarithm
Exponential function

Mifflin.

Addison-Wesley.

Topic  Compound
Interest:
6 Present Value
and Future
Value
LEARNING OUTCOMES
1. Calculate compound interest;
2. Differentiate between effective and nominal rates;
3. Compute present value using compound interest formula; and
4. Construct the equation of value.
 INTRODUCTION
This topic introduces compound interest which is commonly applied in finance and
economics. The compound interest formula and some relevant examples are also
provided. In addition, this topic discusses the difference between effective rate and
nominal rate, followed by the computation of present value and the set-up of the
equation of value.

130  TOPIC 6 COMPOUND INTEREST: PRESENT VALUE AND FUTURE VALUE
6.1 COMPOUND INTEREST

Firstly, how do we calculate compound interest? Compound interest is calculated
based on the original principal plus the interest accumulated from the previous
period. It usually makes a deposit grow at a faster rate than simple interest. This is
because simple interest is always calculated based on the original principal. Let us
look at an example.
Example 6.1
RM1,000.00 is invested over three years. Find the interest earned if the interest rate is:
(a) 9 per cent per annum simple interest; and
(b) 9 per cent compounded annually.
Solution:
The calculation for Example 6.1 can be simplified into Table 6.1.
Table 6.1: Calculation for Example 6.1
Compound
Year Simple Interest Amount Amount
Interest
1 1,000  0.09  1 1,000 + 90 1,000  0.09  1 1,000 + 90 = 1,090
= 90 = 1,090 = 90
2 1,000  0.09  1 1,090 + 90 1,090  0.09  1 1,090 + 98.1
= 90 = 1,180 = 98.1 = 1,188.10
3 1,000  0.09  1 1,180 + 90 1,188.1  0.09  1 1,188.10 + 106.93
= 90 = 1,270 = 106.93 = 1,295.03
(a) Total interest earned = 90  3 = RM270.00

(b) Total interest earned = 90 + 98.1 + 106.93 = RM295.03
The results indicate that the amount generated by compound interest is more
than simple interest.

TOPIC 6 COMPOUND INTEREST: PRESENT VALUE AND FUTURE VALUE  131
There are some important terms which are commonly used in relation to compound
interest. They are listed in Table 6.2.
Table 6.2: Important Terms Commonly Used in Relation to Compound Interest
Term Description
Original principal, P The original amount deposited.
Annual interest rate, k The interest for a year together with the frequency in
which the interest is calculated in a year.
Interest period or The length of time in which the interest is calculated.
conversion period
Frequency of conversion, Number of times the interest is calculated in a year.
m
Periodic interest rate, Interest rate for each interest period.
i = k/m
Number of interest periods n with n = mt (t is time in years).
in the investment period
Example 6.2
RM7,500.00 is invested at 12 per cent compound quarterly for two years and three
months. Find the:
(a) Original principal, P
(b) Annual interest rate, k
(c) Interest period
(d) Frequency of conversion, m
(e) Periodic interest rate, i
(f) Number of interest periods in the investment period, n

Solution:
(a) P = RM7,500.00
(b) k = 12 per cent compounded quarterly
(c) The interest period is three months
(d) m=4
(e) i = k/m
= 0.12/4
(f) n = mt
= 4  2¼
= 9 interest periods
ACTIVITY 6.1
RM4,500.00 is invested at 8 per cent compounded semi-annually for

three years and six months. Find the:
(a) Original principal
(b) Annual interest rate
(c) Interest period
(d) Frequency of conversion
(e) Periodic interest rate
(f) Number of interest periods in the investment period
Share your answers in the myINSPIRE forum.

6.1.1 Compound Interest Formula

Let the original principal = RM P
Periodic interest rate = i per cent
Number of interest periods in the investment period = n
Future value (accumulated value) after n interest periods = S
Then
Original principal = P
Interest earned after one interest period = Pi
Amount after one interest period = P + Pi = P(1 + i)
Interest earned after two interest periods = P(1 + i)i
Amount after two interest periods = P(1 + i) + P(1 + i)i = P(1 + i)2
Interest earned after three interest periods = P(1 + i)2i
Amount after three interest periods = P(1 + i)2 + P(1 + i)2i = P(1 + i)3
Continuing the previous process, we get
S = P(1 + i)n
Subtracting P from S gives us the compound interest, I.
I=S–P
Let us look at Example 6.3.

Example 6.3
Find the future value of RM8,500.00 which was invested for:
(a) Four years at 5 per cent compounded annually
(b) Three years at 4.5 per cent compounded semi-annually
(c) Three and a half years at 5.5 per cent compounded quarterly
(d) One and a half years at 3.5 per cent compounded every two months
(e) Two years at 6 per cent compounded monthly
Solution:
(a) Given P = RM8,500.00

i = k/m = 0.05/1
n = mt = 1  4 = 4
Using S = P(1 + i)n, we will get

S = 8,500(1 + 0.05)4
= RM10,331.80
(b) Given P = RM8,500.00

i = k/m = 0.045/2
n = mt = 2  3 = 6

S = 8,500(1 + 0.045/2)6
= RM9,714.02
(c) Given P = RM8,500.00

i = k/m = 0.055/4
n = mt = 4  3½ = 14

S = 8,500(1 + 0.055/4)14
= RM10,290.85

(d) Given P = RM8,500

i = k/m = 0.035/6
n = mt = 6  1½ = 9

S = 8,500(1 + 0.035/6)9
= RM8,956.81
(e) Given P = RM8,500

i = k/m = 0.06/12
n = mt = 12  2 = 24

S = 8,500(1 + 0.06/12)24
= RM9,580.86
Example 6.4
Find the future value and interest earned if RM4,440.00 is invested for four years
and four months at 4 per cent compounded monthly.
Solution:
Given: P = RM4,440.00
i = 0.04/12
n = 12  4⅓ = 52
Using the formula S = P(1 + i)n, we will get

S = 4,440(1 + 0.04/12)52
= RM5,278.80
Interest earned, I = S – P
= 5,278.80 – 4,440.00
= RM838.80

Example 6.5
Let us say that RM7,550.00 is invested for five years and three months. If the
investment offer 6 per cent compounded quarterly interest for the first three years
and 7 per cent compounded monthly interest for the rest of the period, calculate the:
(a) Future value of the investment
(b) Total interest earned
Solution:
Draw a time diagram (see Figure 6.1).
Figure 6.1: Time diagram for Example 6.5
(a) Amount of investment at the end of three years:

S3 = P(1 + i)n
= 7,550(1 + 0.06/4)12
= RM9,026.92
Let P = RM9,026.92
Amount of investment at the end of five years and three months:

S5¼ = P(1 + i)
= 90,26.92(1 + 0.07/12)27
= RM10,561.90
(b) Total interest earned:

I = S–P
= 10,561.90 – 7,550
= RM3,011.90

ACTIVITY 6.2
1. Suraya invested RM3,600.00 in an account for six years at 6.4 per

cent compounded quarterly. Find the interest earned.
2. RM50,000.00 is invested for three years and nine months. The

investment offers interest at 10 per cent compounded quarterly for
the first two years and 12 per cent compounded monthly for the rest
of the period. Find the future value of this investment.
6.2 EFFECTIVE AND NOMINAL RATE

What does nominal rate mean?
Nominal rate is when interest is calculated more than once a year.
For example, 7 per cent compounded monthly. When interest is computed

annually or only once a year, it is called an effective rate. The effective rate is used
as a common basis for comparing an investment with different compounding
periods. Let us look at an example.
Example 6.6
RM1,000.00 is invested for one year. Find the amount after one year if the interest
rate is:
(a) 12.55 per cent compounded annually; and
(b) 12 per cent compounded quarterly.
Solutions:
(a) Given P = RM1,000.00

i = 0.1255
n = 1

Using formula S = P(1 + i)n, we will get

S = 1,000(1 + 0.1255)1
= RM1,125.50
(b) Given P = RM1,000.00

i = 0.12/4
n = 41
Using formula S = P(1 + i)n, we will get

S = 1,000(1 + 0.12/4)4
= RM1,125.50
Note that 12.55 per cent compounded annually is an effective rate and 12 per cent
compounded quarterly is a nominal rate. Here, the effective rate of 12.55 per cent
compounded annually is equivalent to 12 per cent compounded quarterly.
The relationship between the effective rate and nominal rate can be expressed in the
form of:
r = (1 + i)m – 1
where r = Effective rate

i = k/m = Nominal rate
Example 6.7
Find the effective rate which is equivalent to 14.5 per cent compounded monthly.
Solution:
Given i = 0.145/12, m = 12
r = (1 + i)m – 1
= (1 + 0.145/12)12 – 1
= 0.1550
= 15.5%

ACTIVITY 6.3
1. Find the effective rate which is equivalent to 13 per cent

compounded semi-annually.
2. Which yields more interest, 7 per cent compounded monthly or

7.1 per cent compounded annually?
Share your answers with your coursemates in the myINSPIRE forum.
6.3 FUTURE AND PRESENT VALUE

Do you know what future value means?
Future value in compound interest refers to the accumulated amount over

time inclusive of principal and interest earned.
How about present value?
Present value is the reverse of future value. It is the value of money now and
is used to calculate the current value of a future amount.
From S = P (1 + i)n, we get present value, P = S (1 + i)–n.
Let us look at some examples.
Example 6.8
You would like to have an accumulated amount of RM20,000.00 in a savings
account that offers interest at 12.5 per cent compounded quarterly in five years.
How much would you have to invest today?
Solution:
Given S = RM20,000.00
i = 0.125/4
n = 4  5 = 20
Using formula P = S(1 + i)–n, we will get

P = 20,000(1 + 0.125/4)–20
= RM10,808.14
Example 6.9
Find the interest earned for investment if the accumulated amount at the end of five
years is RM3,734.97 and the interest rate is 7.5 per cent compounded monthly.
Solution:
Given S = RM2,734.97
i = 0.075/12
n = 12  5 = 60
Using formula S = P (1 + i)n, we will get

3,734.97 = P (1 + 0.075/12)60
P = RM2,570.00
Interest earned, I = S – P
= 3,734.97 – 2,570
= RM1,164.97
Example 6.10:
A debt of RM2,500.00 is due at the end of the third year. If money is worth 10 per
cent compounded semi-annually, find the value of this debt at the end of the first
year.
Solution:
Draw a diagram (see Figure 6.2).
Figure 6.2: Time diagram for Example 6.10

Using formula P = S(1 + i)–n, we get

P = 2,500(1 + 0.10/2)–4
= RM2,056.76
ACTIVITY 6.4
1. Calculate the amount of money needed now to purchase a laptop

valued at RM3,500.00 in a year if you invest the money at 6.2 per
cent compounded quarterly.
2. Mariana wishes to accumulate RM6,000.00 at the end of five years.

She makes a deposit today. Find the total interest earned if the
interest rate is 7.2 per cent compounded monthly.
6.4 EQUATION OF VALUE

Before we end this topic, let us look at the equation of value. What does it mean?
The equation of value is an equation that describes the equivalence of two

sets of obligations, debts and repayments at a comparison date which is also
called the focal date.
We can describe the relationship as follows:
Amount paid = Amount owed at the focal date

or
Amount given = Amount received at the focal date
There are four procedures that can be applied to solve the equation of value. The
procedures are:
(a) Draw a time diagram with all the dated values;
(b) Choose a focal date (also known as comparison date);

(c) Bring all dated values to the focal date using the formula S = P(1 + i)n or
P = S(1 + i)–n; and
(d) Apply the concept where the Amount paid = Amount owed at the focal date,
set up an equation of value and then find the solution to the question.
Example 6.11
Halim has two debts. The first debt amounting to RM1,500.00 is due at the end of
the first year and another debt of RM6,500.00 is due at the end of the fifth year. Let
us say that:
(a) Halim wishes to settle all his debts by making a single repayment at the end
of the second year. What is this single repayment if the money is worth 5 per
cent compounded quarterly?
(b) Halim wishes to settle all his debts by making two equal repayments, one at
the end of the second year and another at the end of the fourth year. What is
this payment if the money is worth 5 per cent compounded quarterly?
Solution:
(a) Step 1: Draw a time diagram with all the dated values (Figure 6.3).
Figure 6.3: Time diagram for Example 6.11(a)
Let the single repayment be X.
Step 2: Fix the focal date.
The focal date is at the end of the second year.

Step 3: Bring all dated values to the focal date.

(i) Amount of the debt of RM1,500 at the focal date is:
S = P(1 + i)n with
P = RM1,500.00; i = 0.05/4 and n = 4.
Therefore,
S = P(1 + i)n
= 1,500(1 + 0.05/4)4
= RM1,576.42
(ii) Amount of debt of RM6,500 at the focal date is:
P = S(1 + i)–n with
S = RM6,500.00; i = 0.05/4 and n = 3  4 = 12. Therefore,
P = S(1 + i)–n
= 6,500(1 + 0.05/4)–12
= RM5,599.81
(iii) Amount of repayment, X, at the focal date is RMX.
Step 4: Formulate the equation of value.
X = RM1,576.42 + RM5,599.81
= RM7,176.23
(b) Step 1: Draw a time diagram with all the dated values (Figure 6.4).
Figure 6.4: Time diagram for Example 6.11(b)
Let the single repayment be X.

Step 2: Fix the focal date.
The focal date is at the end of the fourth year.
Step 3: Bring all dated values to the focal date.
(i) Amount of debt of RM1,500.00 at the focal date is S = P(1 + i)n with:
P = RM1,500.00; i = 0.05/4 and n = 3  4 = 12. Therefore,
S = P(1 + i)n
= 1,500(1 + 0.05/4)12
= RM1,741.13
(ii) Amount of debt of RM6,500 at the focal date is:

S = P(1 + i)–n with
S = RM6,500.00; i = 0.05/4 and n = 4. Therefore,
P = S(1 + i)–n
= 6,500(1 + 0.05/4)–4
= RM6,184.91
(iii) Amount of repayment, X (of Year Two) at the focal date is:
S = P(1 + i)n with P = RMX; i = 0.05/4 and n = 8. Therefore,
S = X (1 + 0.05/4)8
= 1.1045X
(iv) Amount of repayment X at the focal date is RMX.
Step 4: Formulate the equation of value.

1.104 X  X  RM1, 741.13  RM6,184.91
2.1045 X  RM7,926.04
7,926.04
X
2.1045
 RM3,766.23

ACTIVITY 6.5
Sheila has two debts. A debt of RM1,200.00 that will mature at the end
of the first year and another debt of RM2,400.00 at the end of the sixth
year.
(a) Sheila wants to settle both debts by making a single payment at the
end of the second year. Find this payment if the money is worth
6 per cent compounded monthly.
(b) Sheila wants to settle the debts by making two equal payments at the
end of the third and fifth years. Find this repayment if the money is
worth 6 per cent compounded monthly.
EXERCISE 6.1
1. Gina invests RM4000 in an investment fund for three years. At the

end of the investment period, her investment will be worth RM5000.
Find the simple interest rate that is offered?
2. Zaharah invests RM250 in a building society account. At the end of
the year, her account is credited with 2% interest. How much interest
had her RM250 earned in the year?
3. Azlan invests RM140 in an account that pays r % interest. After the
first year he receives RM4.20 interest. What is the value of r, the
rate of interest?
4. Alisa deposit RM250 in a high-earning account paying 9%
compound interest and leave it for three years. What will be the
balance on the account at the end of that time?
5. Azila saves RM5000 in a saving account that pays 5% compounded
annually. Calculate the amount in her account at the end of 5 years.

6. RM15,200 is invested for 3 years in a bank earning a simple interest

rate of 4.8% per annum. Calculate the simple amount at the end of
the investment period?
7. Alif invests RM3000 in an investment fund for 5 years. At the end
of the investment period, his investment will be worth of RM3850.
Obtain the simple interest rate that is offered.
8. Calculate the present value at 10% simple interest of a debt

RM10,200 due in six months.
9. Obtain the future value of RM2000 which was invested for 3 years
and 6.8% compounded quarterly.
10. Judika invests RM1200 in a bank account which pays interest at the
end of 4% per annum. Calculate the value of her investment after
4 years.
11. Dave borrow RM500 for four years and agree to pay 6.5%
compound interest for this period. What amount will he need to
pay back?
12. How much must Samson deposit in a 6% savings account if he

wants it to amount to RM120 after two years?
13. What rate of interest will allow RM350 to grow to RM500 in five
years?
14. For how long must a sum be deposited in an account paying 14%
compound interest in order to double in value?
15. Find the effective rate which is equivalent to 12% compounded

quarterly.
16. Hatta is planning a trip to Europe to visit his friend in two yearsÊ
time. He makes an itinerary for his holiday and he expects that the
trip will cost RM15,000. How much he saves at the end of every
month if his savings account earns an interest rate of 8% per
annum?

 Compound interest is calculated based on the principal plus the interest.
 Future value is the accumulated amount calculated based on a given interest rate
after a certain period.
 The effective rate is the interest rate calculated once a year.
 The nominal rate is the interest rate calculated more than once a year.
 The present value of an amount S at i per cent per interest period due in n interest
period is P = S(1 + i)–n.
 The equation of value is set up based on the following relationship:

or
Amount given = Amount received at the focal date
Compound interest Future value

Effective rate Nominal rate
Equation of value Present value


Topic  Differentiation
7
LEARNING OUTCOMES
1. Find the derivative by applying the basic differentiation rules,
product rule and quotient rule;
2. Apply the chain rule; and
3. Derive the power rule as a special case of the chain rule.
 INTRODUCTION
In this topic, you will be exposed to the process of obtaining derivatives for
functions, which can be differentiated. The process of finding the derivative is
called differentiation. Differentiating a function by direct use of the definition of
a derivative can be tedious, that is, applying the limit definition. Thus, a set of
differentiation rules has been derived from the limit method to simplify the
process. The rules are completely mechanical and are efficient procedures for
differentiation. Nevertheless, for those who are interested in the evidences of these
rules, they may refer to Calculus books for verification.
The common notation used to denote differentiation of a function, with respect to

dy
a variable x, is f (x) and is pronounced as f prime x and (pronounced “dee y,
dx
dee x”).
If f (x) can be found, f is said to be differentiable and f (x) is called the derivative
of the function f with respect to variable x or differentiation of f over x.

150  TOPIC 7 DIFFERENTIATION
There are eight rules in differentiation as shown in Figure 7.1.
Figure 7.1: Eight rules in differentiation
7.1 CONSTANT RULE

The formula for constant rule is:
If f (x) = c, where c is a constant, then f (x) = 0.
Let us now look at the examples given.
Example 7.1
(a) If f (x) = 15, then f (x) = 0.

(b) If g(x) = 1.4, then g(x) = 0.
dy
(c) If y = 3x0, then y    0 , as x0 = 1.
dx
(d) If y = e5, then y = 0, when e5 is a constant.
(e) If y = log 7, then y = 0.

TOPIC 7 DIFFERENTIATION  151
7.2 POWER RULE

The formula for power rule is:
If f (x) = xn where n is a constant, then f (x) = nxn–1
Let us take a look at the examples given.
Example 7.2
(a) If f  x   x6 , then
dy
 6 x 61
dx
 6 x5
1
(b) If h  w   3
, then
w 5
3

h  w  w 5
3
3  1
Hence, h  w    w 5
5
8
3 
 w 5
5
d  
4
(c)
3 4
If y  x , then y   x 3 
dx  
 
4
4 1
 x 3
3
1
4 3
 x
3

7.3 CONSTANT TIMES A FUNCTION RULE

The formula for constant times a function rule is:
If f (x) = c(g(x)), where c is a constant and g(x) exists, then f (x) = c(g(x))
Example 7.3
Suppose y = 9x4 then d y  9  d x 4 

dx  dx 
 
 
 9 4 x 4 1
 9 4 x  3
 36 x 3
Example 7.4
Given f  x   4 x3 . Find f (x).
Solution:
Convert f (x) into exponential form or power form.

1
f  x  4  
x 3 2
3
 4x 2

Therefore;
d  2
3
f  x  4
  x 
dx  
 
 3 3 1 
 4 x2 
2 
 
3 1
 4 x2 
2 
 
1
 6x 2 or 6 x
7.4 RULES OF SUMS AND DIFFERENCES OF

FUNCTIONS
To calculate the rules of sums and differences of functions, the formulas are:
(a) If f (x) = g(x) + h(x), where g(x) and h(x) exist, then f (x) = g(x) + h(x)
(b) If f (x) = g(x)  h ( x ) , where g(x) and h(x) exist, then f (x) = g(x)  h(x)
Example 7.5
(a) Suppose f (x) = 3x2 + 5. According to Rule IV, f (x) = g(x) + h(x), where
g(x) = 3x2 and h(x) = 5, then:
 
f ( x)  3 2 x 21  0
 6x

(b) Suppose f (x) = 10x5 – 6x. According to Rule IV, f (x) = g(x) – h(x), where
g(x) = 10x5 and h(x) = 6x, then:
   
f ( x)  10 5 x51  6 1x11
 10  5 x   6  x 
4 0
 50 x 4  6
(c) Suppose f (x) = 5x4 – 8x3 + 3x2 – x + 12
Differentiation is performed on each expression of f (x).
    
f ( x)  5 4 x 41  8 3x31  3 2 x 21  1  0
 20 x3  24 x 2  6 x  1
Example 7.6
Given f ( x ) 

5 x4  3  . Find f (x).
2
Solution:
Simplify f (x):
5 x 4  15
f ( x) 
2
5 x 4 15
 
2 2
5 4 15
 x 
2 2

d  5 x 4  d  15 
Therefore, f   x      
dx  2  dx  2 

5
2
 
4 x 41  0
20 x3

2
 10 x3
Example 7.7
7 x3  x
Given f ( x )  . Find f (x).
2 x
Solution:
Convert f (x) by writing it in exponential form or power form.
7 x3  x
f ( x)  1
2x 2
7 x3 x
 1
 1
2x 2 2x 2
1 1
7 3 1 1
 x 2 x 2
2 2
5 1
7 1 2
 x2  x
2 2
7  5 2  1  1  1 
5 1
1

Therefore, f ( x )   x  x
2

22  22 
   
3 1
35 2 1 
 x  x 2
4 4

Example 7.8
3
Suppose f ( x)  x 5
x 2

 7 x  1 . Find f (x).
Solution:
Expand f (x) by applying the exponential rule.
13 8 3
f ( x)  x5  7x5  x 5
13
13 5 1 8 8 1 3
3
1
f  ( x)  x  7  x5   x5
5 5  5
 
8 3 2
13 56 3 
 x5  x5  x 5
5 5 5
8 3 2

13 x 5  56 x 5  3x 5

5
7.5 PRODUCT RULE

The formula for product rule is:
If f (x) = g(x)h(x), where g(x) g' ( x ) and h(x) exist, then f (x) = h(x)g(x) +
g(x)h(x)
Let us take a look at the examples given.
Example 7.9
If f (x) = 2x(3x2 – 2). Determine the derivative for f (x).
Solution:
Let g(x) = 2x and h(x) = (3x2 – 2).
Then g(x) = 2 and h(x) = 6x

Therefore, f ( x)  (3x 2 – 2)(2) + 2x(6x)
 6x2 – 4 + 12x 2
 18x 2 – 4
Example 7.10
If f (x) = (x + 3)(4x2 + 2x). Determine the derivative for f (x).
Solution:
Let g(x) = x + 3 and h(x) = 4x2 + 2x, then

g(x) = 1 and h(x) = 8x + 2
Therefore, f (x) = (4x2 + 2x)(1) + (x + 3)(8x + 2)

= 4x2 + 2x + 8x2 + 24x + 2x + 6
= 12x2 + 28x + 6
Example 7.11
Given s(t) = (8 – 7t)(t2 – 2). Determine s′(t).
Solution:
s (t )   8  7t 
dx

d 2
  
t  2  t2  2
d
dx
 8  7t 
  8  7t  2t    t  2   7 
2
 16t  14t 2  7t 2  14
 21t 2  16t  14

Example 7.12
dy
Given y = (x2 + 3x – 2)( 2x2 – x – 3). Determine .
dx
Solution:
dy
dx

 x 2  3x  2
d
dx
   
2 x2  x  3  2x2  x  3
d 2
dx
x  3x  2   
  x  3 x  2   4 x  1   2 x  x  3  2 x  3
2 2
  4 x  x  12 x  3 x  8 x  2    4 x  6 x  2 x
3 2 2 3 2 2
 3x  6 x  9 
  4 x  11x  11x  2    4 x  4 x  9 x  9 
3 2 3 2
 8 x3  15 x 2  20 x  7
7.6 QUOTIENT RULE

The formula for quotient rule is:
g  x
If y  f  x  , where g ( x) and h( x) exist, then
h  x
h  x  g   x   g  x  h  x 
f   x  2
 h  x  

Example 7.13
x
Given f ( x)  . Determine the first derivative for f ( x).
x 1
Solution:
d d
 x  1  x    x   x  1
f  ( x)  dx dx
 x  1 2

 x  11   x 1
 x  12

 x  1  x
 x  12
1

 x  12
Example 7.14
2x  3 dy
Given y  . Determine .
4x 1 dx
Solution:
d d
dy 
4 x  1  2 x  3   2 x  3  4 x  1
 dx dx
dx  4 x  1 2

 4 x  1 2    2 x  3 4 
 4 x  12
8 x  2  8 x  12

 4 x  12
14

 4 x  12

Example 7.15
8x2  2 x  1 dy
Given y  2
. Determine .
x  5x dx
Solution:
dy 8 x 2  2 x  1

dx x2  5x
x 2
 5x  dxd 8x 2
 
 2 x  1  8x2  2 x  1  dxd  x 2
 5x 

x 
2 2
 5x

x 2
 
 5 x 16 x  2   8 x 2  2 x  1  2 x  5  
x 
2 2
 5x

16 x 3
 2 x 2  80 x 2  10 x   16 x  40 x 3 2
 4 x 2  10 x  2 x  5 
 x  5x 2 2
16 x 3  82 x 2  10 x  16 x 3  44 x 2  12 x  5

x 
2
2
 5x
38 x 2  2 x  5

x 
2
2
 5x
7.7 CHAIN RULE

The formula for chain rule is:
dy  dy   du 
If y = f (u), where u = g(x), then y  x   
dx  du   dx 

Example 7.16
dy
Given y = (1 + x)4 . Determine .
dx
Solution:
dy du
Step 1: Introduce one new variable, u, so that and are easy to calculate.
du dx
Let u = 1 + x, then y = u4
dy du
Step 2: Calculate and .
du dx
When u = 1 + x, and y = u4,
du dy
Then =1 and = 4u3
dx du
dy
Step 3: Use the chain rule to calculate .
dx
dy  dy  du 
y  x      
dx  du  dx 
 4u 3 1
 4u 3
dy
Step 4: Calculate into expressions of x.
dx
dy
Substitute u = 1 + x into , gives
dx
dy
= 4(1 + x)3.
dx

Example 7.17
dy
Determine , given y = (3 + x3)4.
dx
Solution:
(a) Let u = (3 + x3), hence y = u4
du dy
(b) Then = 3x2 and = 4u3
dx du
dy  dy   du 
(c) By using the chain rule:    
dx  du   dx 
 
 4u 3 3x 2
dy
(d) Substitute u = (3 + x3) into .
dx
dy
   3x 
3
 4 3  x3 2
dx
 12 x 2 3  x  3 3
Example 7.18
3

Given y  2 x  1 2
 2, determine y(x).
Solution:
3
(a) Let u = (2x + 1), hence y 
2
(u ) 2
1
du dy 3 2
(b) Then  4 x and  u
dx du 2

dy  dy   du 
(c) By using the chain rule:    
dx  du   dx 
1
3
 u 2 4x
2
dy
(d) Substitute u = ( 2x 2 + 1) into .
dx
1
dy 3

 2 x2  1
dx 2
 2  4x
1

 6x 2x 1 2
 2
7.8 POWER RULE (A SPECIAL CASE OF THE

CHAIN RULE)
The formula for power rule (a special case of chain rule) is:
n n 1
If y   g  x   , then y  n  g  x   g  x  .
Example 7.19
Given y = (3x + 4)7. Find y(x).
Solution:
Let g(x) = 3x + 4, then g(x) = 3 and n = 7.
Therefore, y(x) = 7(3x + 4)7–1(3)

= 21(3x + 4)6

Example 7.20
Given y = (13 – x4)5. Find y(x).
Solution:
Let g(x) = (13 – x4), then g(x) = –4x3 and n = 5.
Therefore, y(x) = 5(13 – x4)5–1 (–4x3)

= –20x3 (13 – x4)4
Example 7.21
1
2
Differentiate the function y = (3x – 2x + 1) 2 .
Solution:
1
dy 1
  d
 
1
 3x 2  2 x  1 2 3x2  2 x  1
dx 2 dx
1
1
 

 3x2  2 x  1 2  6x  2
2
1
 

2
 3x  2 x  1 2  3x  1

Example 7.22
3
 2x  2 
Differentiate the function f ( x )  3  
 x3 
Solution:
31
 2x  2  d  2x  2 
f  ( x)  3    
 x3  dx  x  3 
 d d 
 2x  2    x  3  2 x  2    2 x  2   x  3 
2
 3 dx dx
  
 x3    x  32 
 
2
 2x  2 
 3 
 x  3 2    2 x  2 1 
  
 x3    x  32 
2
 2x  2  2x  6  2x  2 
 3   
 x3    x  32 
 
2
 2x  2   4 
 3  
 x  3    x  32 
ACTIVITY 7.1
For more details on the rules of differentiation, visit the following website
https://www.intmath.com/differentiation/differentiation-intro.php

EXERCISE 7.1
Find the first degree differentiation for the following functions:

(a) f (x) = 15 (b) f (x) = 5x0
(c) y = 6e3 (d) y = 8 ln2

(e) y = x3(x4) (f) h(s) = x5
2
 1
(g) p(r) = r 3 (h) s(t) = 3
t 5
4
(i) y= x5 (j) y= x5
3
(k) y = 4 8 x2 (l) f (x) = 5 x 2  4
x
x
(m) f (x) = 3x + 7 (n) f (x) = 2 
4
2 5( x4  3)
(o) y = x + 4x + 8 (p) f (x) =
2
4 x3  7 x  4
(q) f (x) = (r) y = (1 + x) (1 – 2x)4
x
x 1
(s) y = (2x – 1) (x + 1)4 (t) y=
x2  2
4 x3  1
(u) y= 2 (v) y = (2x – 1)2
x 1
(w) y = (x2 + 4)5 (x) y= 3x 2  2 x  1

3
2  2x  2 
(y) f (x) = x  5x (z) f (x) =  
 x3 

1. If f (x) = x4 +5x, then f (1) is
A. 0 B. 4 C. 5 D. 9
2
2. If g ( x)  3x 4  , then g ( x ) 
x
3

3
A. 3+ x B. 3x  x 2
3

3
C. 12x  x D. 12x  x 2
8(9  3x)5
3. If y  , then y  =
5
4 8(9  3x)5
A. 24(9  3x) B. 
25
8(9  3x)5
C. D. 24(9  3x)4
25
3  2x 2
4. If y  , then y  =
x2
3 6 4 3  4x
A. 2 B.  C.  D.
x2 x3 x3 x4
5. Given y  5 x3  x  8, then y(2)  y(1) =
A. 14 B. 34 C. 46 D. 60

This topic explains the eight rules of differentiation:
 Constant rule
– If f (x) = c, where c is a constant, then f (x) = 0
 Power rule
– If f (x) = xn where n is a constant, then f (x) = nx n ă1
 Constant times a function rule

– If f (x) = c (g (x )) , where c is a constant and g(x) exists, then
f (x) = c(g(x))
 Rules of sums and differences of functions

– If f (x) = g(x)  h(x), where g(x) and h(x) exist, then
f (x) = g(x)  h(x)
– If f (x) = g(x) h(x), where g(x) and h(x) exist, then

f (x) = h(x) g(x) + g(x) h(x)
 Product rule
– If f ( x )  g ( x ) h ( x ), where g' ( x ) and h' ( x ) exist, then
f  ( x )  h ( x ) g  ( x )  g ( x ) h ( x )
 Quotient rule
g  x
– If y  f  x   , where g(x) and h(x) exist, then
h x
h  x  g   x   g  x  h  x 
f   x  2
 h  x  

 Chain rule
dy  dy   du 
– If y = f (u), where u = g(x), then y  x   
dx  du   dx 
 Power rule (a special case of the chain rule)

n 1
– If y   g  x   , then y  n  g  x   g   x 
n
Chain rule Power rule (a special case of the chain rule)

Constant rule Quotient rule
Constant times a function rule Rules of Sums and differences of functions
Product rule
Power rule
Ayres, F. Jr., & Mendelson, E. (2013). Calculus. New York, NY: McGraw Hill.
Barnett, R. A., Ziegler, M. R., & Byleen, K. E. (2002). Calculus for business,
economics, life sciences, and social sciences. Upper Saddle River, NJ:
Prentice Hall.
Calculus: Volume 1. (2016, March 30). Retrieved from

https://openstax.org/details/books/calculus-volume-1
Weisstein, E. (2019, April 18). Differential calculus. Retrieved from

http://mathworld.wolfram.com/topics/DifferentialCalculus.html

Topic  Applications of
Differentiation
8
LEARNING OUTCOMES
1. Apply the rules of differentiation when deriving higher degree
derivatives of various functions;
2. Solve the functions of total cost, total revenue and total profit in the
economic and business world;
3. Calculate the average functions of total cost, total revenue and total
profit in the economic and business world;
4. Derive the marginal or ultimate function of total cost, total revenue
and total profit in the economic and business world; and
5. Minimise the total cost function while maximising the total revenue
and total profit functions by using differentiation.
 INTRODUCTION
The derivative or differentiation of function y = f (x) is denoted by:
dy
y’ = f '(x) = is the first degree differentiation function with respect to x.
dx
When differentiation is performed on y', then:
d (2) y
y  f ( x)  is the second derivative of a function with respect to x. It is read
dx (2)
as “f double prime of x”.

TOPIC 8 APPLICATIONS OF DIFFERENTIATION  171
Similarly, when differentiation is performed on y″, the third derivative is denoted

by:
d (3) y
y  f ( x)  is the third-degree differentiation function with respect to x.
dx (3)
Subsequently, the higher-order derivative is as follows:
d (n) y
y n  f n ( x)  is the n-th degree differentiation function with respect to x.
dx ( n )
A comprehensive understanding and ability in applying the rules of differentiation

together with the knowledge of demand and supply functions will assist learners in
realising the applications of differentiation.
Learners are expected to appreciate the applications of differentiation in economic

and business fields, which involve calculating the functions of total cost, total
revenue and total profit. The differentiation method will determine how to minimise
the total cost function while maximising the total revenue function and the total
profit function.
8.1 SECOND AND THIRD-DEGREE

DIFFERENTIATION
This topic will cover differentiation up to only the third degree. Application of the
rules of differentiation repeatedly will support the process of obtaining the required
level or degree of differentiation.
Example 8.1
Given y = 4x3  12x2 + 6x + 2. Derive y″
Solution:
 
y  4 3 x 2  12  2 x   6
 12 x 2  24 x  6
y  12  2 x   24 1
 24 x  24

172  TOPIC 8 APPLICATIONS OF DIFFERENTIATION
Example 8.2
d (3) y
Determine (3)
given that y  2 x 1  x 2  1
dx
Solution:
dy
dx

 2 1x 2  2 x
 2 x 2  2 x
d (2) y
dx (2) 
 2 2 x 3  2 
 4 x 3  2
d (3) y
dx (3) 
 4 3 x 4 
 12 x 4
EXERCISE 8.1
1. Find the second-degree differentiation for the given functions:

2
(a) y  4 x 3  12 x 2  6 x  2 (b) y
x2
2. Find the third-degree differentiation for the following functions:
(a) y  4x2 (b) y  4 x 3  12 x 2  6 x  24
(c) y  2 x 1  x 2  1

8.2 TOTAL COST FUNCTION (C )

The total cost function is the total cost required to produce x units of a product. In
short, it is the cost required to conduct business.
There are two types of costs, which are:
(a) Fixed Cost

Unchanged or unvaried cost although the number of units of a product being
produced varies. For example, monthly rental of the building.
(b) Variable Cost

The cost which depends on the number of units of a product produced. For
example, raw materials and part-time workers.
In general, the function of cost can be written as:
C(x) = Fixed Cost + Variable Cost

= Fixed Cost + (Number of units)  (Cost per unit)
Example 8.3
The production cost for one unit of a child’s toy is RM5 while its fixed cost is
RM7,000.
(a) Determine the cost function.
(b) What is the total cost for producing 100 units of the above toy?
Solution:
(a) The cost function, C(x) = Fixed Cost + x(Per Unit Cost)
= 7000 + 5x
(b) When x = 100, C(x) = 7000 + 5(100)

= 7000 + 500
= 7500
Therefore, the total cost of producing 100 units is RM7,500.

8.2.1 Average Total Cost Function (C )

The average total cost function C ( x ) is the total cost for producing one unit of a
product.
C  x
C  x 
x
Example 8.4
Given the total cost function, C(q) = 2q + 40. What is the average total cost function?
Solution:
C (q)
The average total cost function, C (q) 
q
2q  40

q
40
 2
q
8.2.2 Marginal or Ultimate Total Cost Function (C ')

In business, the rate of change for a function is known as a marginal function. The
marginal or ultimate total cost function, denoted by C(x) is the rate of change for
the total cost function over quantity.
Example 8.5
1 3
Given the average cost function, C ( x)  x .
10 x
(a) What is the total cost function?
(b) What is the ultimate total cost function?
(c) Calculate the rate of change for the cost (assuming the cost is in RM) when
four units of the product are produced.

Solution:
(a) Total cost function, C ( x )  C ( x )( x )

 1 3
 x   ( x)
 10 x
1 2
 x 3
10
1
(b) Ultimate cost, C ( x)   2x   0
10
1
 x
5
(c) The rate of change for the cost is the ultimate cost, C(x).
If four units of the product are produced, i.e. x = 4, then
1
C (4)  (4)
5
4

5
Hence, the rate of change for the cost when four units of the product are
produced is RM0.80 per unit.
8.2.3 Minimising Total Cost

In business and economics, the cost is usually reduced (or minimised) to obtain the
highest (or maximum) production revenue and total profit.
Steps to minimise the cost function, C(x):

1. Find C(x) and C  ( x )
2. Let C(x) = 0 and solve for x. Suppose x = a and a has to be positive.

3. If C ( a )  0 , then x = a is the quantity or level of production which
minimises the cost.

Example 8.6
Given C (q ) = 0.01q 2 + 5q + 100 is the cost function.
(a) Obtain the average cost function.

(b) Determine the production level, q which minimises the average cost.
(c) What is the minimum value for the average cost?
Solution:
C (q)
(a) Average cost function, C (q) 
q
0.01q 2  5q  100

q
100
 0.01q  5 
q
(b) (i) Find C ( q ) and C ( q ) .
dC
C(q)   0.01  100q 2
dq
d 2C
and C (q )  2
 200q 3
dq
200

q3

dC
(ii) When 0
dq
100
0.01  0
q2
100
 0.01
q2
q 2  10 000
q  100
(iii) Will q = 100 minimise the cost?
d 2 C 200 d 2C 200
 , when q = 100,  0
dq 2 q3 dq 2 1003
d 2C
Therefore  0, then C ( x ) will have a minimum value when
dq 2
q = 100.
(c) When q = 100, C ( q )  0.01q  5  100

q
100
C (100)  0.01(100)  5 
100
7

EXERCISE 8.2
1. The production cost for one unit of Product A is RM10 while its
fixed cost is RM5,000.
(a) Find the cost function.
(b) What is the total cost for producing 200 units of the Product
A?
(c) Derive the average cost function.
(d) Determine the ultimate total cost function.
100 000
2. Suppose the average total cost function is C (q)  + 1500 +
q
0.2q.
(a) Obtain the total cost function.
(b) Derive the marginal total cost function.
(c) Determine the rate of change for the cost of producing 10 units
of the product.
q2
3. Given the total cost function is C (q)   3q  400.
4
(a) Find the average cost function.
(b) Derive the ultimate total cost function.
(c) What is the quantity which has to be produced so that the
average total cost is minimised?
4. Elyna Trading supplies sports attire to supermarkets in northern

Peninsular Malaysia. The company's annual cost is given by the
15
function, C   0.15q  200, where q is the quantity (in dozen)
q
and C is the total cost in a year (in thousands of RM).
(a) What is the quantity which minimises the total cost?
(b) What is the minimum total cost?

5. The total production cost of a cosmetic product is C = 2500 + 75q +

0.25q2.
(a) Find the average total cost function.
(b) What is the quantity which has to be produced so that the
average total cost is minimised?
(c) What is total cost at the production level which minimises the
average total cost?
8.3 TOTAL REVENUE FUNCTION (R )

Total revenue function, R(x) is the revenue received from the production and sales
of x units of a product.
If p is the unit price and x is the quantity of the product, then
Total Revenue Function, R(x) = Price  Quantity

= px
8.3.1 Average Total Revenue Function ( R )

The average total revenue function R ( x) is the revenue received from selling one
R( x)
unit of a product, i.e. R ( x )  .
x
8.3.2 Marginal or Ultimate Total Revenue Function

(R' )
Ultimate total revenue function is the rate of change of the total revenue over the
quantity of a product:
Ultimate Total Revenue Function = R(x)

Example 8.7
The demand function of a product is given as p = 200q + 500.
(a) What is the total revenue function?
(b) Determine the ultimate total cost function.
Solution:
(a) Total revenue function, R(x) = Quantity  Price
= qp
= q (200q + 500)
= 200q2 + 500q
(b) Ultimate total revenue function, R′(x) = d/dq (R(x))

= 400q + 500
SELF-CHECK 8.1
What is the definition for “ultimate” or “marginal?” in the context of total

cost or total revenue function? What is the significance of the term?
8.3.3 Maximising Revenue Function

In business and economics, the total revenue is usually maximised to achieve the
maximum profit.
Steps to maximise the revenue function, R(x):

1. Find R′(x) and R″(x).
2. Let R′(x) = 0 and solve for x. Suppose x = b and b has to be positive.
3. If R″(b) < 0, then x = b is the quantity or level of production which
maximises the revenue.

Example 8.8
80  q
The demand function of a product is given as p(q)  .
4
(a) Determine the quantity which maximises the total revenue.
(b) Obtain the price which maximises the total revenue.
Solution:
(a) Total revenue function, R(q)  Quantity  Price

 q( p)
 80  q 
 q 
 4 
q2
 20q 
4
To maximise the total revenue, the ultimate total revenue function has to be
zero and R(q)  0.
q 1
Ultimate total revenue function, R(q)  20  and R(q)  
2 2
q
When R(q) = 0, then 20  0
2
q
  20
2
q  40
Does the value q = 40 maximise the revenue? Substitute q = 40 into R(q).
1 1
Observe that R(q )   , therefore R(40)    0.
2 2
Therefore q = 40 is the quantity which maximises the total revenue.

80  q
(b) Given p ( q )  . At the quantity of q = 40,
4
80  40
p(40) 
4
 10
Hence, the price has to be fixed at RM10 in order to maximise the revenue.
Example 8.9
A research has been conducted to determine the import tax of a unit of an electronic
item made in a foreign country. The demand on that particular item is given by the
function D(t) = 8000 – 20t, where D denotes the demand quantity (in hundred units)
and t represents the import tax (in RM).
(a) Determine the revenue function for tax, R(t).
(b) Calculate the import tax which needs to be imposed to maximise the tax
revenue.
(c) What is the maximum tax revenue?
(d) Obtain the quantity of the required electronic item at the tax level which
maximises its revenue.
Solution:
(a) R (t )  ( D )(t )
 (8000  20t )t
 8000t – 20t 2

(b) R ( t ) = 8000 t – 20 t 2
dR
 8000  40 t
dt
dR
When  0, then 8000  40t  0
dt
40t  8000
t  200
R(t )  40
When t = 200, R″(200) < 0, then the total import tax which needs to be
imposed is RM200 to maximise the tax revenue.
(c) R (a )  8000t  20t 2
 8000(200)  20(200) 2
 1, 600, 000  80, 000
 800, 000
Therefore, the maximum tax revenue is RM800,000.
(d) D (t )  8000 – 20t

= 8000 – 20(200)
 4000
To reach the level of tax which maximises its revenue, 4,000 units of the
electronic item need to be imported.

EXERCISE 8.3
1. The demand function of a health product is given by the function

p = 0.001 q 2 + 840.
(a) Obtain the total revenue function.
(b) Derive the average total revenue function.
(c) Determine the marginal total revenue function.
2. Given the total demand function, p(x) = 2 – 0.01p, where p is the

unit price in RM and x is the quantity of the item.
(a) Find the total revenue function.
(b) Determine the price which maximises the total revenue.
3. Given the total revenue function, p(x) = 2 – 0.01p, where p is the

unit price in RM.
(a) Determine the price which maximises the total revenue.
(b) Calculate the maximum total revenue.
8.4 TOTAL PROFIT FUNCTION ()

The total profit or loss function, (x), is obtained from the production of a single
unit product. In general:
 = Total Revenue Function – Total Cost Function

= R(x) – C (x)

Example 8.10
The demand function for vehicle spare part items at ATSAS Enterprise is given as
p = 400 – 2q and the average total cost per unit to produce the item is given by the
2000
function, C  q   q  160  . Determine the total profit function for ATSAS
q
Enterprise.
Solution:
2000
Given p = 400 – 2q and C  q   q  160 
q
Total cost function, C (q)  C (q)  q
 2000 
  q  160  q
 q 
 q 2  160q  2000
Total Profit  Total Revenue  Total Cost

 R (q ) – C (q )
 pq – C ( q )
 (400 – 2 q ) q – ( q 2  160 q  2000)
=–3q 2 + 240 q – 2000
8.4.1 Average Total Profit Function (  )

The average total profit is the profit obtained from the production of a single unit
product.
( x)
( x) 
x

Example 8.11
Given the demand function for a product is p(x) = 8  0.025x and the total cost
function is C(x) = 500 + 7x. Find the:
(a) Total revenue function
(b) Total profit function
(c) Functions for the average total cost, average total revenue and average total
profit.
Solution:
(a) Total revenue function, R(x) = xp (x)

= x(8  0.025x)
= 8x  0.025x 2
(b) Total profit function, ( x)  R( x)  C ( x)
 
 8 x  0.025 x 2   500  7 x 
 0.025 x 2  x  500
C ( x)
(c) Average total cost function, C ( x) 
x
500  7 x

x
500
 7
x
R ( x)
Average total revenue functon, R ( x) 
x
8 x  0.025 x 2

x
 8  0.025 x
The demand function is also the average total revenue function.

( x)
Average total profit function, ( x) 
x
0.025 x 2  x  500

x
500
 0.025 x  1 
x
8.4.2 Ultimate Total Profit Function (’)

It is the rate of change of the total profit over the quantity of a product.
( x)  R( x)  C( x)
Example 8.12
Suppose the total cost function, C(x) = 0.05x2 – 3x + 500 and the function for the
total revenue is R( x) = 3x – 0.01x2 . Obtain the:
(a) Total profit function

(b) Functions for the average total cost, average total revenue and average total
profit.
Solution:
(a) Total profit function, (x)  R (x ) – C (x )

 (3 x – 0.01 x 2 ) – (0.05 x 2 – 3 x + 500)
 – 0.06 x 2 + 6 x – 500
(b) Ultimate total cost function, C(x) = 0.05(2x) – 3

= 0.10x – 3
Ultimate total revenue function, R(x) = 3 – 0.01(2x)

= 3 – 0.02x

Ultimate total profit function, (x) = – 0.06(2x) + 6

= – 0.12x + 6
Or
(x) = R(x) – C(x)

= (3 – 0.02x) – (0.10x – 3)
= – 0.12x + 6
8.4.3 Maximising Total Profit

As we all know, the purpose of having a business as well as any economy is to
obtain maximum profit.
Steps to maximise profit:

1. Find  ( x ) and  ( x ).
2. Let  ( x ) = 0 and solve for x. Suppose x = c and c has to be positive.
3. If  (c )  0 , then x = c is the quantity or level of production which

maximises the profit.
Example 8.13
The demand equation for a travel agency is p = 40 – 2q and its function for the
100 .
average cost is given as C (q )  4 
q
(a) Determine the total revenue function, R(q).

(b) Determine the total cost function, C (q).
(c) Determine the total profit function, (q).
(d) Calculate the price which will maximise the profit. Show that the profit is
maximised.

Solution:
(a) R(q)  pq
 (40 – 2q ) q
 40q – 2q 2
C  q
(b) C  q  => C (q)  q C (q) 
q
 100 
 q4 
 q 
 4q  100
(c) (q)  R (q ) – C (q )
 40q – 2q 2 – (4q + 100)
 –2q 2 + 36q – 100
d
(d)  4 q  36
dq
d
When 0
dq
4 q  36  0
4 q  36
q9
d2 
When q = 9,  4  0.
dq 2
Substitute q = 9 into p, p(9) = 40 – 2(9)

 22
Therefore, the price of RM22 will maximise the profit.

EXERCISE 8.4
1. A company has an average total cost function of K  4  100 q 1.

The demand equation for the company is given by the function,
p = 54 – q, where p is the unit price (in RM) and q is the quantity (in
units).
(b) Determine the cost function.
(c) Obtain the profit function.
(d) Find the price at which the company will maximise its profit,
by using differentiation method.
2. The demand function of a local product is p = 300 – x and the cost

function is C (x ) = 0.1x 2 + 14x + 100.

(b) Derive the total profit function.
(c) Determine the quantity which maximises the profit.
(d) Calculate the price at which the profit is maximised.
(e) Find the value of the maximum profit.
3. The demand function for a product based on recycle materials is

2
given as p  x 2  5 x  16 and the average total cost function is
3
1 5
C ( x)  x 2  2 x  .
3 x
(b) Derive the total revenue function.
(c) Determine the total profit function.
(d) Calculate the quantity which maximises the profit.
(e) Find the value of the maximum profit.

ACTIVITY 8.1
Can fixed cost be a variable? Why? Share your input by posting your
answer in the myINSPIRE forum.
1. Given that f (x) = 3x2 + 12x  9.

(a) What is the critical point?
A. (6, 189) B. (6, 24)
C. (2,0) D. (2, 3)
(b) Determine the nature of its critical point.

A. Minimum point B. Maximum point
C. Inflection point D. No conclusion
2. Given that C(x) = 0.05x2  3x + 500 and R(x) = 3x  0.01x2.

(a) What is the total profit function?
A. 0.06 x 2  6 x  500 B. 3x  0.01x 2
C. 0.05 x 2  3x  500 D. 0.06 x 2  500

(b) What is the marginal profit function?
A. 0.10 x  3 B. 3  0.02x
C. 0.12 x  6 D.  0.06 x 2  6 x  500
(c) What is the quantity that will maximise the profit?

A. 0.5 B. 6 C. 12 D. 50

 Differentiation can be applied to minimise or maximise a quantity.
 We can minimise cost and maximise revenue and profit.
 Some of the significant differentiation formulas which are often used in

economics and business world are:
Total cost C
 Average cost = ,C  .
Quantity q
dC
 Ultimate or marginal cost = Rate of change for cost, C   .
dq
Total revenue R
 Average revenue = ,R  .
Quantity q
dR
 Ultimate or marginal revenue = Rate of change for revenue, R   .
dq
Total profit 
 Average profit = , .
Quantity q
d
 Ultimate or marginal profit = Rate of change for profit,    .
dq
Average total cost function Marginal/Ultimate total profit function

Average total profit function Marginal/Ultimate total revenue
function
Average total revenue function
Second and third-degree differentiation
Marginal/Ultimate total cost function tests

Prentice Hall.
Kindfather, W. L., & Parish, W. A. (2003). Business mathematics. Upper Saddle

River, NJ: Prentice Hall.
Strang, G., & Herman, E. J. (2016, March 30). Calculus: Volume 1. Retrieved from
Weisstein, E. (2019, April 23). Differential calculus. Retrieved from

http://mathworld.wolfram.com/topics/DifferentialCalculus.html

Topic  Integration
9
LEARNING OUTCOMES
1. Apply the rules of integration to solve integration problems;
2. Calculate definite integrals; and
3. Apply the substitution technique for a complex problem.
 INTRODUCTION
Calculus is divided into two broad areas – differential calculus, which was
discussed in the previous topic and integral calculus, which will be discussed in
this topic. The derivative is a rate of change of a function with respect to an
independent variable. Therefore, if given a derivative of a function, then the
function itself can be determined. The process of obtaining the original function is
an inverse process of differentiation known as integration. Geometrically, a definite
integral refers to the area under a curve.
9.1 ANTI-DERIVATIVES
d
If F ( x)  f ( x), then the integration of a function f (x) is F(x). This is because of
dx
their inverse relationship.

TOPIC 9 INTEGRATION  195
The notation for integration is:
 f ( x)dx  F' ( x)  c
where
 : Integral sign c : The constant of integral

f (x) : Integrand F'(x) : Anti-derivative
dx : With respect to variable x F'(x) = f (x)
Consider the following derivatives:
(a)
d 2
dx
 
x  2x (b)
d 2
dx

x  4  2x  (c)
d 2
dx
 
x  100  2 x
Therefore, 2x is not the only derivative of x2 but also a derivative of x2 + 4 and

x2 – 100. Thus, by having an arbitrary number c to represent all the different
numbers, x2 + c is the anti-derivative of 2x and is written as  2 x dx  x 2  c.
Integration of a function f (x) is therefore F(x) + c and the process of finding F(x)
is called integration.
The following rules are derived from reversing the process and can be applied to
solve integration problems.
9.1.1 Integration Rules

Generally, there are seven integration rules as shown in the following:
Rule 1.  k dx  kx  c, k is a constant
x n1
 x dx 
n
Rule 2.  c, n ≠ 1
n 1
Special case (when n = 1)
1 1
x dx  
x
dx  ln x  c

196  TOPIC 9 INTEGRATION
Rule 3. k f ( x) dx  k  f ( x) dx, k is a constant
Rule 4.   f ( x)  g ( x)  dx   f ( x) dx   g ( x) dx
Rule 5.   f ( x)  g ( x)  dx   f ( x) dx   g ( x) dx
e
x
Rule 6. dx  e x  c
ek x
 e dx 
kx
Rule 7.  c, k is a constant
k
Let us take a look at these rules in the following examples:
Example 9.1: Applying Rule 1
(a) 1dx = x  c
(b)  5dx = 5 x  c
(c) 100 dx = 100x  c
(d)   dx   x  c
(e)  e dx  ex  c
Example 9.2: Applying Rule 2
x2
 x dx   x dx 
1
(a) c
2
x31 x4
 x dx  3  1  c  4  c
3
(b)
3
1 3
x2 2
(c)  x dx   x 2 dx 
3
 x2  c
3
2

1 3 x 2 1
(d)  x3 
dx  x dx 
2
c 
2 x 2
c
1
(e)  x dx  ln x  c
Example 9.3: Applying Rules 3, 4 and 5
 3 x dx  3 x dx (Take the constant out as stated in Rule 3)

3 3
(a)
x31 x4
3 c 3 c
3 1 4
1 1 1 1
(b)  5 x dx  5  x dx  5 ln x  c (Take the constant out as stated in Rule 3)
  3x 
 1 dx   3 x3dx   1dx (Applying Rule 4)
3
(c)
3 4
x  xc
4
 2x 
 x 2 dx   2 x 5 dx   x 2 dx (Applying Rule 5)
5
(d)
2 6 1 3 1 1
x  x  c  x6  x3  c
6 3 3 3
(e)   2 x  x  x  1 dx
 2 x 
2
 x  1 dx (Expand first as there is no rule for product integration)
=  2 x 2 dx   x dx   1 dx (Expand using Rules 3 and 4)
x3 x 2
 2   x  c (Integrate one at a time)
3 2

(f)  
x x 2  1 dx 
1  5 1 
 x2  2

x  1 dx =   x  x 2  (Expand dx first)

2

 
5 1
  x2 dx   x2 dx
5 1
1 1
x2 x2
   c (Integrate one at a time)
5 1
1 1
2 2
7 3 7 3
x2 x 2 2x 2 2x 2
  c   c
7 3 7 3
2 2
x4  x2
(g)  x4
dx
1
 1  dx (Simplify the expression as there is no rule for division
x2
integration)
1
= 1dx   x2 dx (Change 2
as x 2 )
x
x 2 1
 x c
2  1
x 1 1
 x c  x c
1 x

Example 9.4: Applying Rules 6 and 7

x
 e dx  e  c
x
(a)
2x e2 x
(b)  e dx  2
c
100 x e100 x
(c) e dx 
100
c
x
x 2 x
e
(d) e 2 dx 
1
c  2e 2 c
24 x 4e24 x
(e)  4e dx   c  e 2  4 x  c
4
EXERCISE 9.1
Integrate each of the following:
(a)   dx (b)  e dx
 8 p dx  ex
3 2
(c) (d) dx
 1 
 u  du
2 3

3 4  x 2  dx
(e)  3u (f)  x  x  3 x

 
 x5  2 x 2  1 
(g) 
 x 1  x dx
3
 (h)   x 4  dx
 
0.07t 3s  4
(i) e dt (j) e ds
1  x   2  x  dx
2
4 x 
   x  4  e
x
(k) 3
(l)  dx
x 

ACTIVITY 9.1
The inverse of differentiation is integration. Is there a mathematical

process that does not involve an inverse? Share your answer with your
coursemates in the myINSPIRE forum.
9.2 DEFINITE INTEGRALS

Suppose f (x) is a function which is defined between interval [a, b] and F(x) is the
anti-differentiation for f (x). The definite integrals for f (x) between interval [a, b]
is given by:
b
f ( x) dx   F ( x ) a  F (b)  F ( a )
b
a
where a is the lower limit and b is the upper limit of the integration.
Let us now look at the examples below:
Example 9.5
1 x
3 3
dx
Solution:
3
3 3  x4   34 14 
 x dx     
 4 1 4 4
1
 81 1  80
     20
 4 4 4

Example 9.6
1 2x
0 e dx
Solution:
1
1 2x  e2 x  e 2(1) e2(0)
 e dx    
 2 0 2 2
0
e2 e0 e 2 1
   
2 2 2 2
Example 9.7
e1
1 x dx
Solution:
  ln x 1  ln e  ln1  1  0  1
e
9.2.1 Rules of Definite Integrals
Suppose  f dx and  g dx are defined between interval [a, b] where a, b and c are
constants. Hence:
b b
1. a cf ( x) dx  c a f ( x) dx
b b b
2. a  f ( x)  g ( x)  dx  a f ( x ) dx   g ( x) dx
a
b b b
3. a  f ( x)  g ( x)  dx  a f ( x ) dx   g ( x ) dx
a
For further understanding, let us look at the examples given.

Example 9.8
3
1 3x
3
dx
Solution:
3
3  x4   34 1   81 1 
1 3x dx  3  4   3  4  4   3  4  4 
3
 1  
 80 
 3    3  20   60
 4 
Example 9.9
e 1 
1  x  2 x  dx
Solution:
e 1  e 1 e
1  x  2 x  dx 
1 x
dx   2 x dx
1
e
  ln x 1   x 2 
e
1
  ln e  ln1  e2  1
 1  0  e2  1
 2  e2

EXERCISE 9.2
Find the values of the following integrations:
 1 x 1  x  dx
3 3 2
 2 x dx
3
(a) (b)
2 2 1 2 4 
 1 (t 1  x3  x2  x
2
(c)  2t  8) dt (d)  dx
9 4 5
(e)  4  2 y y dy (f) 1
e dx
84 4  x  1
(g)  1  y  dy (h)  1  dx
x 
ACTIVITY 9.2
What is the term given to the values of a and b for the interval [a, b]? Post
your answer in the myINSPIRE forum.
9.3 INTEGRATION BY SUBSTITUTION

Integration by substitution is one of the techniques used to integrate functions that
are more complex. It involves changing the basic variable (usually x) to another
variable (usually u). The relationship between these two variables must be
specified. Once the variable changes, the integration will be easier to handle.

Example 9.10
 2x x 2  1 dx
Solution:
Step 1: Identify u and du
When u = g(x), u is assumed to be without power. Therefore, u = x2 + 1

and hence, du = 2x dx
Step 2: Substitute the integration from x to u

1 1 1
 2x  x  
  x 1  2 x dx  
2 2
1 2 dx 2 u 2 du
Step 3: Integrate with respect to u

1 3
2
 u 2 du  3 u 2  c
Step 4: Substitute back the u to x
3
2

 x2  1
3
 2 c
Example 9.11
x
 2
x 3
dx

Solution:
1
u  x2  3 du  2 x dx  x dx  du
2
1
du 1
x 2 1 2
 x2  3
dx   1   u du
2
u2
1
1 
Step 3: Integrate  u 2 du with respect to u
2
 1  1
1  u2 
   c  u2  c
2 1 
 2 
1
x 3
3  2 c

Example 9.12
ln x
 x
dx
Solution:
dx
u  ln x, du 
x
dx
 ln x x 
 u du
u2
c
2
 ln x 2  c
2
Example 9.13
x
 x2  1 dx

Solution:
du
u  x2  1 du  2 x dx   x dx
2
du
x x dx 1 du
 x2  1 dx   x2  1   u2  2  u
1
ln u  c
2
1
2

ln x 2  1  c 
EXERCISE 9.3
Integrate the following:
 t   3x

3
(a)  2 t 4  8t  2 dx (b) dx
2
4x  5
(c) e
x
 x
e  2 dx  (d) 
x2  x
 4  3x 2
 2x 
3 4
dx
s x 1
(e)  3 1  2s 2 ds (f)  x 2  2 x  1 dx

Choose the correct answer.

x
1.  x
dx
3 1 3
x2 2 2 2 2 3 2
A. 3
c B. x c C. x c D. x 
3 3 2
x2
3
2. e 5x
dx
5 3
A.  e 5 x  c B.  e 5 x 1  c
3 5x  1
3 4
C.  e5 x  c D.  e5 x  c
5 5
3x 2
3.  ( x3  8)2 dx
1 x3
A.  c B.  c
8  x3 (8  x3 )3
1 x3
C. c D.  c
8  x3 3(8  x3 )3

 3x
2
4. ( x3  5)20 dx
( x3  5)21 x3 ( x3  5)21
A. c B. c
21 21
( x3  5)21 x3 ( x 4  5)21
C. c D. c
63 21
3
1
5.  6 x  3dx
1
1 1 1 1
A. B. ln 6 C.  D. ln 5
15 15 2 6
ACTIVITY 9.3
1. What does it take to become an expert in recognising the u and du?

2. Visit http://www.sosmath.com/calculus/calculus.html for more
examples on integration by substitution.

 Integration may be applied in order to determine the function given by its rate
of change.
 Basic integration rules include the following:
–  k dx  kx  c, k is a constant
x n 1
–  x dx 
n
 c, n  1
n 1
Meanwhile, for the special case, when n = 1:
1 1
x dx  
x
dx  ln x  c
– k f ( x) dx  k  f ( x) dx , k is a constant
–   f ( x)  g ( x)  dx   f ( x) dx   g ( x) dx
–   f ( x)  g ( x)  dx   f ( x) dx   g ( x) dx
 e dx  e
x x
– c
ek x
 e dx 
kx
–  c , k is a constant
k
 Integration by substitution is one of the techniques used to integrate functions

that are more complex.
Anti-derivatives Integration rules

Definite integrals Integration by substitution

Prentice Hall.
Hoffmann, L. D., & Bradley, G. L. (2000). Calculus for business, economics, life
sciences, and social sciences. Boston, MA: McGraw-Hill.
Weisstein, E. (2019, April 23). Integrals. Retrieved from

http://mathworld.wolfram.com/topics/Integrals.html

Topic  Applications of
Integration
10
LEARNING OUTCOMES
1. Calculate the area of a region between a graph and the x-axis;
2. Calculate the area between two graphs;
3. Apply integration to determine the producer surplus and the
consumer surplus; and
4. Apply integration to determine the respective cost, revenue and profit
functions from their marginal functions.
 INTRODUCTION
One of the applications of integration is to find the area of a region. This topic will
specifically focus on finding the area between a graph and the x-axis as well as the
area between two graphs. In addition, integration will be used to determine the
consumer surplus and the producer surplus. The applications of integration in
economics and business will enable us to calculate the cost, revenue and profit
functions from their respective marginal functions.

TOPIC 10 APPLICATIONS OF INTEGRATION  213
10.1 CALCULATING THE AREA UNDER A

GRAPH
Suppose f (x) is continuous and that f (x)  0 in the interval [a, b]. As such, the
area under the graph f (x) and above the x-axis from x = a to x = b is
b
A   f ( x) dx. Geometrically, we have the graph as illustrated in Figure 10.1.
a
Figure 10.1: The area under a graph and above x-axis from x = a to x = b
Let us take a look at the following examples:
Example 10.1
Calculate the area under y = 2x from x = 0 to x = 2.
Solution:
Figure 10.2: The graph for the area under y = 2x from x = 0 to x = 2

214  TOPIC 10 APPLICATIONS OF INTEGRATION
Figure 10.2 shows the graph y = 2x is always above the x-axis when x is positive.
Therefore, the area A is:
2 2 2
 0 2 x dx   x
2
 0  4  0  4 unit
Suppose f (x) and g(x) are continuous in the interval [a, b] where f (x)  g(x). In
other words, f (x) is always above g(x). As such, the area between the graphs f (x)
and g(x) in the interval [a, b] as shown in Figure 10.3 is given by:
b
A    f  x   g  x   dx
a
Figure 10.3: The area between the graphs f (x) and g(x) in the interval [a, b]
Example 10.2
Calculate the area between graphs y = x2 and y = x.
Solution:
Step 1: Sketch the graphs to determine which graph is above and which graph is
below (see Figure 10.4).
Figure 10.4: The area between graphs y = x2 and y = x

Step 2: Obtain the intersection points between graphs y = x2 and y = x
x2  x
x2  x  0
x  x  1  0  x  0 and 1
 (0, 0) and (1, 1) are the intersection points.
Step 3: Determine the function above and the function below.

fa = Function above
fb = Function below
Function above minus function below: x – x2
Step 4: Determine the integration and obtain its value.

1
 x 2 x3 
0  x  x 
1 2 1 1 1
dx        unit 2
2 3 0 2 3 6
Example 10.3
Calculate the area between graphs y = 2 – x2 and y = – 2x – 1
Solution:
Step 1: Sketch the two graphs (see Figure 10.5).
Figure 10.5: The area between graphs y = 2 – x2 and y = – 2x – 1

Step 2: Obtain the intersection points between graphs y = 2 – x2 and y = – 2x – 1
2  x 2  2 x  1
x2  2 x  3  0
 x  3 x  1  0  x  3,  1
 (–1, 1) and (3, –7) are the intersection points.
Step 3: Determine the function above and function below. The graph above minus
2 2
the graph below  (2 – x ) – (– 2x – 1) = 3 + 2x – x
Step 4: Determine the integration and obtain its value.

3
 x3 
 1  3  2 x  x 
3 2
dx  3x  x 2  
 3  1
 1 2
 9  9  9   3  1    10
 3 3
EXERCISE 10.1
1. Calculate the area above or below the following graphs:

(a) y = x2 – 1; x = –1 to x = 1
(b) y = 3x2 + 1; x = –1 to x = 2
(c) y = 9 – x2, between [–2, 1]
(d) y = 2x + x2; between [0, 3]
2. Calculate the area between the following two curves:
(a) y = 2x + 4 and y = x2 + 2x + 3
(b) y = 2x – 5 and y = – x2 + 6x – 5
(c) y + x = 6 and y = x2 + 4
(d) y= x and y = x

ACTIVITY 10.1
1. What is the purpose of calculating an area under a graph? Explain.

2. What will you obtain if you integrate the interval [–3, 3] into the
function y = 1? Explain.
10.2 APPLICATIONS OF INTEGRATION IN

ECONOMICS AND BUSINESS
In economics and business, integration may be applied in the following areas:
(a) Consumer surplus and producer surplus; and
(b) Finding the function from its marginal function.
Let us discuss each of these applications of integration in detail.
10.2.1 Consumer Surplus and Producer Surplus

Recall the demand function, p = D (q) and the supply function, p = S (q).
The intersection point of the two equations is called the market equilibrium (qe, pe)
which exists in an ideal competitive market.
(a) Consumer Surplus

Some consumers are willing to pay more than the equilibrium price. The area
A represents the consumer surplus (see Figure 10.6). It is the total profit
gained from the consumers’ willingness to pay more than the market
equilibrium price.

Figure 10.6: Area A represents the consumer surplus while area B represents the
supplier surplus
From Subtopic 8.1, we studied that consumer surplus can be found by finding
the areas between the two graphs.
qe
Consumer surplus: A    D( q )  Pe  dq
0  
 
The graph above The graph below
qe
Or in simpler form, A   D(q)dq  Pe qe
0 
 

 Area of
Area under the rectangle
curve D ( q )
(b) Producer Surplus

On the other hand, some suppliers would offer the product at a price below
the equilibrium price so that they can gain from the equilibrium price. The
total supplier gain is called producer surplus and is represented by the area B
in Figure 10.6.

qe
Producer surplus: B 0  pe

 S (q )  dq
 
 
Graph above Graph below
the straight line
qe
Or in simpler form, B pq 
ee  S (q)dq

 0 
Area of the rectangle Area under the graph below
Example 10.4
Given that the demand function and the supply function for a company are
p = 200 – q2 and p = 6q + 160 respectively, determine the consumer and producer
surpluses for the company.
Solution:
Sketch the graph in the first quadrant only (see Figure 10.7).
Figure 10.7: The graph in the first quadrant only

To obtain the market equilibrium point, we can equate the two functions as follows:
6q  160  200  q 2 p  200  q 2
q 2  6q  40  0  200  16
 184
 q  10  q  4   0
q  10 and q  4
Hence, the market equilibrium point is (4, 184).
 200  q  dq  (4)(184)
4
Consumer surplus: CS   2
0
4
 q3 
  200 q     736
 3  
0
4
  4 
3
  200 q     736
 3 
0

128

3
4
Producer surplus: PS  (4)(184)  
0
 6q  600  dq
 
4
 736   3q 2  160 q 
 0
 736   48  640 
 48

Example 10.5
The demand and supply functions for a company are pd  49  6 q and ps = 1 + q
respectively. Determine the consumer surplus and the producer surplus for the
company.
Solution:
Obtain the market equilibrium point.
pd  ps
49  6q  1  q
49  6q  1  q 
2
49  6q  1  2q  q 2
0  q 2  2q  1   49  6q 
0  q 2  8q  48
0   q  4  q  12 
We will only consider the point q = 4. Therefore, p = 1 + q = 1 + 4 = 5
Hence, the market equilibrium point is (4,5) as shown in Figure 10.8.
Note: The value q = 4 is the integration limit.
Figure 10.8: The graph for the market equilibrium point at (4, 5)

4
Consumer surplus:  0 D  q  dq  (4)(5)
4
0 49  6q dq  20
u  49  6q u  49  6(4)  25
du  6 dq u  49  0  49
du
 dq
6
49
1 1
 3
49 du 1 49 1 u 2 
 25 u 2 6  20   6  25 u 2 du  20  6  3   20
 
 2  25
12
        1
25   20  73  53   20
3 3
49
6 3  9
218 38
  20 
9 9
Producer surplus: pe qe   S ( q )dq

4
 (4)(5)   1  q  dq
0
4
 q2   16 
 20   q    20   4    20  12  8
 2 0  2

ACTIVITY 10.2
1. What is meant by ideal competition? Does non-ideal competition

exist?
2. Why would a consumer be willing to pay a higher price than the
market equilibrium price?
3. Which is better, a situation where there is consumer surplus or
producer surplus?
10.2.2 Finding the Cost, Revenue and Profit Functions

from its Marginal Function
Previously, when cost, revenue and profit functions are given, we will be asked to
find the marginal functions, namely marginal cost, marginal revenue and marginal
profit functions respectively. However, in this topic, with a given marginal function,
we will be asked to find the cost, the revenue and the profit functions. This can be
done by integrating the corresponding marginal functions.
Example 10.6
Suppose that the marginal cost function of a company which produces x thousand
50
units of books is given as C   x   while its fixed cost is RM25,000.
x
(b) Determine the incremental total cost for an increase in production from 100
to 121 units.

Solution:
(a) Given the marginal cost function, we need to integrate the marginal cost
function to obtain the cost function.
C ( x)   C ( x) dx
1
1 1 1
50  x2
 dx   50 x 2 dx  50  c  50  2  x2 c  100 x 2 c
x 1
2
The fixed cost is given as RM25,000. In other words, the cost is RM25,000
when x  0
Solve C(0) = 25000

1
Therefore, 100x 2 + c = 25000
100(0) + c = 25000
c = 25000
1
Hence, C(x) = 100x 2 + 25000
121
(b) 100 C   x  dx
 C 121  C 100 
 100 121  25000   100 100  25000 
 100 11  25000  100 10   25000 

 100
Thus, the required incremental cost is RM100.

Example 10.7
Suppose that a company’s marginal cost function is given as C (x) = 2x3 + 6x  5
and its fixed cost is RM8,000. Calculate the company’s cost function.
Solution:
Given the marginal cost function C′(x) = 2x3 + 6x  5, we integrate to get its cost
function.
C  x    C '  x  dx
  2 x 3  6 x  5 dx
2 x4 6 x2
   5x  c
4 2
x4
C ( x)   3 x 2  5 x  c since C(0) = 8000
2
C (0)  0  0  0  c
8000  c
x4
Therefore, the cost function is C ( x)   3x 2  5 x  8000
2
Example 10.8
A furniture factory has a marginal cost function of C(x) = 3x – 15 and marginal
revenue function of R(x) = 150 – 3x with x being the quantity produced. The fixed
cost for the factory is RM8,000. Determine the:
(a) Revenue function
(b) Demand function
(c) Total cost function
(d) Profit function

Solution:
(a) Revenue function: R( x)   R( x)dx   (150  3x)dx

3x 2
 150 x – C
2
3x 2
 150 x –  R(0)  0
2
(b) The demand function is p = f (x) and can be obtained from the revenue
function, R = p.x
R
Therefore p
x
3x 2
150 x 
R 2  150  3 x
p 
x x 2
3x
Therefore, the demand function is p  150 
2
(c) Total cost function: C ( x)   C ( x)dx   3 x  15dx
3x 2
  15 x  C
2
3x 2
=  15 x  8000  C (0)  8000
2
(d) Profit function: P ( x )  R ( x)  C ( x)

 3x2  3x2
  150 x    (  15 x  8000)
 2  2
 165 x – 3 x 2  8000

EXERCISE 10.2
1. The marginal cost function of a company which produces school

bags is given as C(q) = 0.003q2 – 0.03q, where q is the number of
school bags produced. The company’s fixed cost is RM176.
(b) Determine the incremental total cost when production
increased from 260 to 400 units.
1000
2. The marginal revenue function of a factory is R = . If R is
100q
the revenue in RM, determine the change or increment in revenue
when sales increased from 400 to 900 units.
3. A furniture factory has a marginal cost function of C(x) = 3x – 15

and a marginal revenue function of R(x) = 150 – 3x with x being the
quantity produced. The fixed cost for the factory is RM8,000.
Determine the:
(a) total cost function; and
(b) profit function.
4. The demand and supply functions of a company are p = 400  q and

p = q + 100 respectively. Determine the consumer surplus and the
producer surplus for the company.
5. The marginal cost function of a company is given as

C(q) = 0.001q2  0.02q where q is the product quantity in units.
The fixed cost is RM1,000. Determine the cost function.
6. The demand and supply functions of a particular product are

p = 100 – 0.05q and p = 10 + 0.1q respectively. Determine the
consumer surplus and the producer surplus of the product.
7. The demand and supply functions of a company are

p = 0.01q2  1.1q + 30 and p = 0.01q2 + 8 respectively. Determine
the consumer surplus and the producer surplus.

Choose the correct answer.
1. Find the area of the region enclosed by y = 4x2, x–axis, x = – 4 and

x = 6.
1
A. 373 B. 370 C. 333 D. 333.3
3
2. If a marginal revenue function is R(x) = 10 – 9x + x2, find the total

revenue function.
A. TR = – 9 + 2x B. TR = – 9 + 2x + c
9 2 x3 9 2 x3
C. TR = 10 x  x  D. TR = 10 x  x  C
2 3 2 3
The following information is for Q3, Q4 and Q5:
The demand function is D(x) = 200 – x2 and the supply function

S(x) = 6x + 160
3. Determine the equilibrium point.

A. x = 4, y = 184 B. x = 184, y = 4
C. x = – 4, y = 184 D. x =184, y = –4
4. Determine the consumer surplus.

A. 872 B. 48 C. 128/3 D. 248
5. Determine the producer surplus.

A. 48 B. 248 C. 148 D. 872

 Integration is the inverse of differentiation.
 The application of integration is not only limited to finding the area of a region
but it can also be applied to many business and economic problems.
Applications of integration Market equilibrium

Consumer surplus Producer surplus
Marginal function
Prentice Hall.
Hoffmann, L. D., & Bradley, G. L. (2000). Calculus for business, economics, life
sciences, and social sciences. Boston, MA: McGraw-Hill.

Answers
TOPIC 1: CONCEPTS IN ALGEBRA
Exercise 1.1
3 1 3 2
1. (a)  (b) 
4( x  2) 4( x  2) x x 1
1 1
(c) 1 
2( x  1) 2( x  1)
3 6 9
2.  
2( x  1) x  2 2( x  3)
x2 1
3. 
2( x  2) 2( x  4)
2
TOPIC 2: LINEAR AND QUADRATIC FUNCTIONS
Exercise 2.1
1
1. (a) m  , c  1 (b) m = 5, c = 5
2
2 5
(c) m = 3, c = 0 (d) m , c
3 3
2. y = x + 5
3. 3y = 8x  4
4. 2y + x = 4
5. 3y + x + 3 = 0

ANSWERS  231
Exercise 2.2
(a) (b)
y = 3x + 2 x
y
2
(c)
3y + 2x = 2
Exercise 2.3
(a) The parabola opens upward.
The turning point is (3, – 4).
The y-intercept is (0, 5).
The x-intercepts are (1, 0) and (5, 0).
(b) The parabola opens upward.

The turning point is (–2, –4).
The y-intercept is (0, 0).
The x-intercepts are (0, 0) and (–4, 0).

232  ANSWERS
(c) The parabola opens downward.

The turning point is (–1, –2).
The y-intercept is (0, –3).
There is no x-intercept.
(d) The parabola opens upward.

The turning point is (0, –16).
The x-intercepts are (4, 0) and (– 4, 0).
(e) The parabola opens downward.

The turning point is (2, 1).
The x-intercepts are (1, 0) and (3, 0).
Exercise 2.4
(a) (1, 8)
(b) (0, 2)
(c) (2, –1)
(d) (–3, –1) and (–1, 7)
(e) (1, –1) and (2, 2)
(f) (1, 9) and (3, 29)
Multiple-choice Questions 2.1

1. C 2. B 3. C 4. A 5. A

ANSWERS  233
TOPIC 3: APPLICATION OF LINEAR AND

QUADRATIC FUNCTIONS
Exercise 3.1
1. (450, 9.50) 2. p = RM75 q = 5,225
Exercise 3.2
1. 2p = 100q – 600 is a supply equation
p = 50q + 600 is a demand equation
p = RM150 q=9
2. (a) 50q
(b) 40q + 5,000
(c) 10q – 5,000
(d) 500
Exercise 3.3
(a) 1,850p – 5p2
(b) RM9,125
(c) RM185
(d) RM171,125

1. D 2. A 3(a). C 3(b). D 3(c). C

234  ANSWERS
TOPIC 4: MATRICES
Exercise 4.1
1. (a) 32 (b) 1 3 (c) 31
2. a0
3. No. Identity matrix only exists for square matrix.
4. (a) Zero Matrix (Null)

(b) Column Matrix
(c) Row Matrix
Exercise 4.2
 6 3 9 2 2 1
1. (a)   (b)  
12 0 3 9 1 4
6 3
 
(c)  3 1 (d) Not possible
 2 5 

 130 140   27 35

(e)   (f)  
 110 60  4 26 
 20 2 2
 
(g)  2 1 3
 2 3 10 
 
 2 1
2. A 
5 2

ANSWERS  235
Exercise 4.3
1. (a) 11
(b) a2 + b2
(c) 27
(d) 27
2. (a) 1
(b) The determinant does not exist.
Exercise 4.4
1 2
7  
7
1. (a)  
1 3 
 7 14 
2 11 3
 
(b) 1 6 2
0 1 0 

(c) Does not exist
 13 7 1
  10 5 2
 
 2 1
(d)  5  0 
5
 
 7 3 1
  10 5 2 

236  ANSWERS
 5 3
  
2. A  2
1
2
 
 2 1 
1  d b
3. (a) B 1   
ad  bc  c a 
(b) ad – bc  0
Exercise 4.5
24 23
1. and 2. (a) x , y
5 5
(b) x  1, y  3, z  2
2 10 60
3. (a) x , y , z
17 17 17
(b) x  1, y  0, z  5

1(a). B 1(b). D 2. D 3. C 4. D
TOPIC 5: EXPONENTIAL AND LOGARITHMIC

FUNCTIONS
Exercise 5.1
1
(a) (b) 1 (c) 3
27
1
(d) (e) 125 (f) 8
4

ANSWERS  237
Exercise 5.2
(a) 2 (b) 3 (c) 1
1
(d) (e) 2 (f) 1
4
Exercise 5.3
1. (a) 52 = 25 (b) 2x = y (c) 101 = 0.1
1
2. (a) log10 100 = 2 (b) 10ga 1 = 0 (c) log2 = 3
8
1
3. (a) 4 (b) (c) 1
3
(d) 1 (e) 2 (f) 4
1
4. (a) (b) 3 (c) 3
2
(d) 4 (e) 20 (f) 2
Exercise 5.4
1. (a) 55 years
(b) 97,045 people
2. (a) RM6,016.61
(b) RM14,693.28
(c) RM11,373.99
(d) RM2,354.99

238  ANSWERS
3. (a) RM15,000
(b) RM10,000
(c) RM6,000
(d) RM25,000

1. B 2. D 3. B 4. A 5. C
TOPIC 6: COMPOUND INTEREST: PRESENT

VALUE AND FUTURE VALUE
Exercise 6.1
1. 8.4% 9. RM2448.40
2. RM5 10. RM1403.83
3. 3% 11. RM643.23
4. RM323.75 12. RM106.643.23
5. RM6381.40 13. 7.4%
6. RM17388.80 14. 5.3 years
7. 5.6% 15. 12.6%
8. RM10710.00 16. RM577.90

ANSWERS  239
TOPIC 7: DIFFERENTIATION
Exercise 7.1
(a) 0 (b) 0
(c) 0 (d) 0
(e) 7x6 (f) 5x4

5 8
2  3 
(g)  r 3 (h)  t 5
3 5
1 3
5 4 5 2
(i) x (j) x
4 2
3
3
(k) x4 (l)  10x
x2
1
(m) 3 (n) 
4
(o) 2x + 4 (p) 10x3
4
(q) 8x  (r) 1  2 x 3  10  7 x 
x2
 x2  2 x  2
(s)  x  13 10 x  2 (t)
x 
2 2
2

240  ANSWERS
(u)

2 x 2 x3  6 x  1  (v) 4(2x – 1)
 x  1
2 2
1
 

(w) 10 x(x 2 + 4)4 (x) 3x 2  2 x  1 2  3x  1
2
2x  5  2x  2  4 
(y) (z) 3   
2 x2  5x  x3    x  3 2 
 

1. D 2. D 3. A 4. B 5. C
TOPIC 8: APPLICATIONS OF DIFFERENTIATION
Exercise 8.1
12
1. (a) 24 x  24 (b)
x4
2. (a) 0 (b) 24 (c) 12x 4
Exercise 8.2
1. (a) 10x + 5,000 (b) RM7,000
5, 000
(c) 10  (d) 10
x
2. (a) 100,000 + 1,500q + 0.2q 2 (b) 1,500+ 0.4q
(c) 1,504

ANSWERS  241
q 400 1 400
3. (a) 3 (b) 
2 q 4 q2
(c) 40 units
4. (a) 10 dozens (b) RM203,000
2,500
5. (a) 75  0.25q (b) 100
q
(c) RM12,500
Exercise 8.3
1. (a) 0.01q 3 + 840 (b) 0.01q 2 + 840
(c) 0.003q 2 + 840
2. (a) 2 x – 0.1x 2 (b) RM1,000
3. (a) RM200 (b) RM400
Exercise 8.4
1. (a) R(q) = 54q – q 2 (b) K(q) = 4q + 100
(c)   q   q 2  50q  100 (d) RM29
2. (a) 300x – x2 (b) –1.1x 2 + 286 x – 100

(c) 130 (d) RM170
(e) RM18,490

242  ANSWERS
1 3 2 3
3. (a) x  2 x2  5 (b) x  5 x 2  16 x
3 3
1 3
(c) x  3 x 2  16 x  5 (d) 8
3
(e) RM101.67

1. (a) D (b) C
2. (a) A (b) C (c) D
TOPIC 9: INTEGRATION
Exercise 9.1
(a) xc (b) ex  c
ex3
(c) 8p3x + c (d) c
3
3 5
u4 3 1 2 2 12 4 x 3
(e)  c (f)  x  x  c
4 u 2 x 2 3 5 3
x 2 x5 x2 2 1
(g)  c (h)   c
2 5 2 x 3 x3
e 0.07t e3 s  4
(i) c (j) c
0.07 3
1 1 x2
(k)   2 ln x  xc (l) 4ln x   ex  c
x2 x 8

ANSWERS  243
Exercise 9.2
65 87
(a) (b)
4 10
22 1
(c) (d) 
3 3
211
(e) (f) 3e5
5
20
(g) 4 ln 8 (h)
3
Exercise 9.3
1
1 4
  3
 
2
(a) t  8t  2 c (b) 4x2  2 2 c
8 4
3
(c)

2 ex  2  2
c (d)
1
c
3
 2
18 4  3 x  2 x 3 3

2
(e) 
3
8

1  2s 2  3 c (f)
1
2

ln x 2  2 x  1  c 
1. B 2. C 3. A 4. A 5. D

244  ANSWERS
TOPIC 10: APPLICATIONS OF INTEGRATION
Exercise 10.1
4
1. (a) (b) 12 (c) 4 (d) 18
3
4 32 9 1
2. (a) (b) (c) (d)
3 3 2 6
Exercise 10.2
1. (a) 0.001q3 – 0.015q2 + 176
(b) RM45,038
2. RM2,000
3x 2
3. (a)  15 x  8,000
2
(b) 165x – 3x2 – 8,000
4. Consumer surplus: 11,250

Producer surplus : 11,250
0.001 3
5. q  0.01q 2  1,000
3
6. Consumer surplus = 9,000 Producer surplus = 18,000
7. Consumer surplus = 166.66 Producer surplus = 53.33

1. A 2. C 3. A 4. C 5. A

MODULE FEEDBACK
MAKLUM BALAS MODUL
If you have any comment or feedback, you are welcome to:
1. E-mail your comment or feedback to modulefeedback@oum.edu.my
OR
2. Fill in the Print Module online evaluation form available on myINSPIRE.
Thank you.
Centre for Instructional Design and Technology

(Pusat Reka Bentuk Pengajaran dan Teknologi )
Tel No.: 03-27732578
Fax No.: 03-26978702


BBMP1103 Mathematics For MGT - Vaug19 (RS & MREP)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BBMP1103 Mathematics For MGT - Vaug19 (RS & MREP)

Uploaded by

Copyright:

Available Formats

BBMP1103

Mathematics for Management

Copyright © Open University Malaysia (OUM)

Copyright © Open University Malaysia (OUM)

Module Writers: Assoc Prof Dr Zurni Omar

Moderators: Fatinah Zainon

Developed by: Centre for Instructional Design and Technology

First Edition, November 2007

Copyright © Open University Malaysia (OUM)

Topic 1 Concepts in Algebra 1

Topic 2 Linear and Quadratic Functions 27

Topic 3 Application of Linear and Quadratic Functions 54

Copyright © Open University Malaysia (OUM)

Topic 5 Exponential and Logarithmic Functions 106

Copyright © Open University Malaysia (OUM)

Topic 6 Compound Interest: Present Value and Future Value 129

Topic 7 Differentiation 149

Topic 8 Applications of Differentiation 170

Copyright © Open University Malaysia (OUM)

Topic 9 Integration 194

Topic 10 Applications of Integration 212

Copyright © Open University Malaysia (OUM)

Copyright © Open University Malaysia (OUM)

COURSE GUIDE DESCRIPTION

As an open and distance learner, you should be acquainted with learning

Copyright © Open University Malaysia (OUM)

Table 1: Estimation of Time Accumulation of Study Hours

COURSE LEARNING OUTCOMES

1. Formulate algebraic concepts and methods to perform mathematical finance

2. Apply mathematical relations and functions in business settings; and

3. Determine the solution to business and economic problems using calculus

Copyright © Open University Malaysia (OUM)

Topic 4 discusses the classifications of matrices, matrix operations and

Topic 6 introduces compound interest, which is commonly applied in finance and

Topic 7 discusses the rules of differentiation, which simplify the process of

Copyright © Open University Malaysia (OUM)

Topic 9 introduces integration as a reverse process of differentiation. Further

Topic 10 discusses the various applications of integration such as finding or

TEXT ARRANGEMENT GUIDE

Self-Check: This component of the module is inserted at strategic locations

Copyright © Open University Malaysia (OUM)

Activity: Like Self-Check, the Activity component is also placed at various

References: The References section is where a list of relevant and useful

Copyright © Open University Malaysia (OUM)

Haeussler, E. F., Richards S. P., & Wood R. J. (2014). Introductory mathematical

Peirce, C. S., & Eisele, C. (2016). Algebra and geometry. Berlin/Boston: De

TAN SRI DR ABDULLAH SANUSI (TSDAS) DIGITAL

Copyright © Open University Malaysia (OUM)

1.1 SETS OF REAL NUMBERS

Copyright © Open University Malaysia (OUM)

Next, we will introduce a set of integers as follows:

Z = {0, ±1, ±2, ±3, …} = {..., –3, –2, –1, 0, 1, 2, 3, ...}

where – N is a set of negative natural number. For convenience, Z+ denotes a set of

Copyright © Open University Malaysia (OUM)

where a is a constant, x is an unknown (or a variable) and k  0 is an integer. a is

A polynomial in a single variable is an algebraic expression in the following form:

where an , an1 , ..., a1 , a0 are constants, n  0 and x is a variable. The constants

Copyright © Open University Malaysia (OUM)

Hence, a polynomial is an algebraic sum of monomials in which no variables appear

Table 1.1: Properties of Some Polynomials

Coefficient of Each of the Monomials

For example, 7y3 – 3y + 4 is a polynomial of degree 3 with y as the variable.

And, 9z4 + 2z3 – 10, is a polynomial of degree 4 with the variable z.