Self-Instructional Manual (SIM) For Self-Directed Learning (SDL)

UNIVERSITY OF MINDANAO
College of Arts and Sciences Education

General Education - Mathematics
Physically Distanced but Academically Engaged
Self-Instructional Manual (SIM) for Self-Directed Learning (SDL)
Course/Subject: GE 4 – Mathematics in the Modern World

(Week 6 – 7)
Name of Teacher: Louie Resti S. Rellon
SIM Prepared by: Prof. Ronnie O. Alejan
THIS SIM/SDL MANUAL IS A DRAFT VERSION ONLY.

THIS IS INTENDED ONLY FOR THE USE OF THE
STUDENTS WHO ARE OFFICIALLY ENROLLED
IN THE COURSE/SUBJECT.
THIS IS NOT FOR REPRODUCTION, COMMERCIAL, AND

DISTRIBUTION OUTSIDE OF ITS INTENDED USE.
EXPECT REVISIONS OF THE MANUAL.
2nd Floor, DPT Building, Matina Campus, Davao City
Phone No.: (082)300-5456/305-0647 Local 134
Week 6-7: Unit Learning Outcomes (ULO):

At the end of the unit, you are expected to
a. Apply geometric concepts in describing and creating designs; and
b. Recognize mathematics as a tool in
(1) social choices (for courses under CASE, CHSE, CCJE, & CTE)
(2) finance (for courses under CBAE, CAE, & CHE)
(3) linear programming (for courses under CEE, CCE, & CAFAE).
Big Picture in Focus

ULO-a. Apply geometric concepts in describing and creating designs.
Metalanguage
In this section, the essential terms relevant in the study of geometric designs
and to demonstrate ULO-a will be operationally defined to establish a common frame
of reference as to how the texts work. You will encounter these terms as we go
through the study of geometric designs. Please refer to these definitions in case you
will encounter difficulty in understanding some concepts.
1. Geometry is a branch of mathematics concerned with questions of shape,

size, relative position of figures, and the properties of space.
2. Plane is a flat surface that extends forever in two dimensions, but has no
thickness. It is a bit difficult to visualize a plane because in real life, there is
nothing that we can use as a true example of a geometric plane. However, we
can use the surface of a wall, the floor, or even a piece of paper to represent
a part of a geometric plane. You just have to remember that unlike the real-
world parts of planes, geometric planes have no edge to them.
3. Space is the boundless three-dimensional extent in which objects and events

have relative position and direction. The concept of space is considered to be
of fundamental importance to an understanding of the physical universe.
4. Transformation refers to the movement of objects in the coordinate plane.

Geometric transformations involve taking a pre-image and transforming it in
some way to produce an image. There are two different categories of
transformations: The rigid transformation, which does not change the shape
or size of the pre-image; and non-rigid transformation, which will change the
size but not the shape of the pre-image.
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Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes) for the sixth and
seventh weeks of the course, you need to fully understand the following essential
knowledge that will be laid down in the succeeding pages. Please note that you are
not limited to refer to these resources exclusively. Thus, you are expected to utilize
other books, research articles, and other resources that are available in the
university’s library e.g., ebrary, search.proquest.com, etc.
1. Recognizing and Analyzing Geometric Shapes

Geometric shapes have fascinated many people throughout history
whether it could be in the field of art, science, engineering, interior designing
and other professions. Mathematicians constructed ideal representation of
these shapes and have developed methods in obtaining the measurement of
lengths (one-dimension), areas (two-dimension), and volumes (three-
dimension).
1.1 Polygons
A polygon is a two-dimensional shape with straight sides. It can be
classified according to number of its sides such as a three-sided shape is
called a triangle and a four-sided shape is called a quadrilateral. Others are
pentagon, heptagon, hexagon and so on.
Polygons can either be simple or complex. Simple polygon has only
one boundary and never cross over itself while complex polygon intersects
itself.
Polygons can either be concave or convex. A convex polygon has no
angles pointing inwards. More precisely, no internal angles can be more than
180°. If there are any internal angles greater than 180° then it is concave.
Polygons can either be regular or irregular. If all angles are equal and
all sides are equal, then it is regular, otherwise it is irregular.
The interior angles of a polygon are the angles inside the shape. In
general, for a polygon with n sides, the sum of the internal angles is equal to
(n – 2) x 180° and if the polygon is regular, the measurement of each angle is
equal to (n – 2) x 180°/n. The sum of the exterior angles of a polygon is 360°.
The interior and angle of each vertex on a polygon add up to 180°.
Number of Sum of internal Measurement of each

Shape
sides angles angle for regular polygon
Triangle 3 180° 60°
Quadrilateral 4 360° 90°
Pentagon 5 540° 108°
Hexagon 6 720° 120°
⁞ ⁞ ⁞ ⁞
any polygon n (n – 2) × 180° (n – 2) × 180° / n
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1.2 Solids
A solid or form is the geometry of three-dimensional space, the kind of
space we live in. It is called three-dimensional or 3D because there are three
dimensions: width, depth and height.
Solids have properties such as volume (think of how much water it
could hold) and surface area (think of the area you would have to paint).
There are two main types of solids, namely: polyhedra and non-
polyhedra.
A polyhedron is a solid made of flat surfaces; each surface is a polygon

like the platonic solids, prisms and pyramids.
1.2.1 Platonic solid is a convex polyhedron with all its faces are
congruent convex regular polygons, none of its faces intersect except at their
edges, and it has the same number of faces that meet at each of its vertices.
There are five platonic solids, namely:
Tetrahedron Cube Octahedron
 4 faces  6 faces  8 faces

 4 vertices  8 vertices  6 vertices
 6 edges  12 edges  12 edges
Dodecahedron Icosahedron
 12 faces  20 faces
 20 vertices  12 vertices
 30 edges  30 edges
Euler’s Formula deals with shapes called polyhedra. It states that
F+V–E=2
where F is the number of faces,
V is the number of vertices or corners and
E is the number of edges.
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This formula works only on solids that did not have any holes and it did
not intersect itself. It cannot also be made up of two pieces stuck together, such
as two cubes stuck together by one vertex. The Euler’s formula works on the
platonic solids.
Polyhedron Faces Vertices Edges F+V–E=2

Tetrahedron 4 4 6 4+4–6=2
Cube 6 8 12 6 + 8 – 12 = 2
Octahedron 8 6 12 8 + 6 – 12 = 2
Dodecahedron 12 20 30 12 + 20 – 30 = 2
Icosahedron 20 12 30 20 + 12 – 30 = 2
1.2.2 Prism is a polyhedron which means all sides should be flat. It has
the same cross section all along its length and shape is a polygon. Some
examples of a prism are as follows:
Square Prism: Cross- Cube Cross-

Section Section
Triangular Prism Cross- Pentagonal Prism Cross-

Section Section
All the prisms above are classified as regular prisms because the cross
section of each is a regular polygon. An irregular prism is one which has a
cross-section that is an irregular polygon.
Cross-
Irregular Pentagonal Prism
Section
1.2.3 Pyramid is a polyhedron made by connecting a base to an apex.

There are many types of pyramids and they are named after the shape of their
base. Some of these are as follows:
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Triangular Square Pentagonal

Pyramid Pyramid Pyramid
base
Non-polyhedra are solids with curved surfaces, or a mix of curved and

flat surfaces such as spheres, cylinders, cones and torus.
Sphere is a perfectly round object in three-

dimensional space. It is non-polyhedron because the
surface of a completely round. It is perfectly symmetrical
with no edges or vertices. All points on the surface are
the same distance from the center.
Cylinder is a three-dimensional solid object

bounded by a curved surface and two parallel circles of
equal size at the ends. The curved surface is formed by
all the line segments joining corresponding points of the
two parallel circles. Because it has a curved surface it is
not a polyhedron.
Torus is a solid formed by revolving a small circle

along a line made by another circle. It has no edges or
vertices and therefore, it is not a polyhedron.
Cone is made by rotating a triangle. The triangle

has to be a right-angled triangle, and it gets rotated
around one of its two short sides. The side it rotates
around is the axis of the cone. It has a flat base and has
one curved side. Because it has a curved surface it is
not a polyhedron.
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2. Transformations
Geometric transformation of shapes is a change of its size, orientation or
position following certain techniques in mathematics. The original shape is
called the object and the new shape is called its image. Many objects around
us are said to be symmetrical and this symmetry resulted from geometric
transformation. Some of the basic geometric transformations are as follows:
Translation is a transformation of an object where Rotation is a transformation of an object by

every point of it moves a fixed distance and a given rotating about a given through a given angle.
direction.
Reflection is a transformation of an object where Glide Reflection is a composition of

every point of it and its image are of the same translation and reflection in a line parallel to
distance from the line of symmetry. the direction of translation.
Reduction Enlargement
Dilation is a transformation of an object by resizing to either reduce it or enlarge it about a point with
a given factor. The value of factor (r) determines whether the dilation is enlargement or reduction.
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3. PATTERNS and DIAGRAMS

Patterns are one aspect in geometry which are usually found and utilized.
There are patterns around us; in our home, we see patterns on wallpapers, on
floor mats, on bed sheets, window pane and on pieces of furniture. Patterns
are also profusion in nature: on flowers, in leaves, on animals and on other
places. Patterns can be simple or more complex and sometimes the same
object or color is used more than once.
3.1 Symmetry
Symmetry is one idea by which man through the ages has tried to
comprehend and create order, beauty, and perfection.
- Herman Weyl
Symmetries are an integral part of nature and the arts of cultures

worldwide. It can be found in architecture, crafts, poetry, music, dance,
chemistry, painting, physics, sculpture, biology, and mathematics. Because
symmetric designs are so naturally pleasing, symmetric symbols are very
popular.
When a figure undergoes an isometry and the resulting image coincides

with the original, then the figure is symmetrical. Different isometries yield
different types of symmetry.
Translation Rotation Reflection
If a figure can be reflected over a line in such a way that the resulting
image coincides with the original, then the figure has reflection symmetry.
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Reflection symmetry is also called bilateral symmetry. The reflection

line is called the line of symmetry.
You can test a figure for reflection symmetry by tracing and folding it. If
you can fold it so that one half exactly coincides with the other half, the figure
has reflection symmetry.
How many lines of symmetry do the leaves and chess board have?
If a figure can be rotated about a point in such a way that it is rotated

image coincides with the original figure, then the figure has rotational
symmetry. You can trace a figure and test it for rotational symmetry. Place the
copy over the original and rotate the copy about the suspected symmetry point.
Count the number of times the copy and the original coincide with the copy until
it is back in the position it started in.
The angle of rotation of a symmetric figure is the smallest angle of
rotation that preserves the figure. However, using degrees to describe the
amount of rotation is sometimes inconvenient because the precise angle is not
obvious from looking at the figure. Instead, the order of rotation to describe
rotational symmetry is always used.
A figure has order n rotational symmetry if 1/n of a complete revolution
leaves the figure unchanged.
This design has 6-fold

rotational symmetry.
3.2 Rosette Pattern

A symmetry group is the collection of all symmetries of a plane figure.
The symmetry groups have all been one of two types:
3.2.1 Cyclic symmetry group has rotation symmetry only around a center
point. If the rotation has n order, the group is called Cn.
3.2.2 Dihedral symmetry group has rotation symmetry around a center point
with reflection lines through the center point. If the rotation has n order,
there will be n reflection lines and the group is called Dn.
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Triskelion logo with cyclic Oval frame with dihedral

(C3) symmetry. (D2) symmetry.
The cyclic and dihedral symmetry groups are known as rosette

symmetry groups, and a pattern with rosette symmetry is known as a rosette
pattern. Rosette patterns have been used as architectural and sculptural
decoration of the new century.
You can create your own rosette pattern using a pattern generator. Visit
the site http://math.hws.edu/eck/jsdemo/rosette.html
3.3 Frieze Pattern

An infinite strip with a repeating pattern is called a frieze pattern, or
sometimes a border pattern or an infinite strip pattern. The term "frieze" is
from architecture, where a frieze refers to a decorative carving or pattern that
runs horizontally just below a roofline or ceiling. Here are some examples of
frieze patterns:
The patterns repeat and extend infinitely in both directions.
A frieze group is the set of symmetries of a frieze pattern, that is

geometric transformations built from rigid motions and reflections that preserve
the pattern. This group contains translations and may contain glide reflections,
reflections along the long axis of the strip, reflections along the narrow axis of
the strip, and 180° rotations.
Many authors present the frieze groups in a different order. Using the
International Union of Crystallography (IUC) notation, the names of
symmetry groups are listed in the table below. These names all begin with "p"
followed by three characters. The first is "m" if there is a vertical reflection and
"1" if it has none. The second is "m" if there is a horizontal reflection or "g" if
there is a glide reflection, otherwise use "1". The third is "2" if there is a 180°
rotation and "1" if there is none.
Mathematician John H. Conway also created nicknames for each frieze

group that relate to footsteps.
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IUC Example / nickname Description
p111
Translations only
Hop
p1g1 Glide-reflections and

Translations
Step
pm11 Vertical reflection

lines and Translations
Sidle
p112 Translations and 180°

Rotations
Spinning Hop
Vertical reflection
pmg2 lines, Glide
reflections,
Translations and 180°
Spinning Sidle Rotations
p1m1 Translations and

Horizontal reflections
Jump
Horizontal and
pmm2 Vertical reflection
lines, Translations
and 180° Rotations
Spinning Jump
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3.4 Tessellation
A tessellation is defined as a pattern of shapes that covers a plane
without any gaps or overlaps. Tessellations can be found on pavements, patios
and wallpapers. Tiled surface of flooring and walls is an example of tessellation
where there are no tiles which overlap and there are no gaps between shapes.
In most cases, tessellations are formed by repeated pattern, however, some
utilize pictures or designs which in no way repeats.
Geometric transformation of polygons such as translation, reflection and
rotation can be used to create patterns. Such patterns that cover a plane
constitute tessellation.
Examples of tessellation of regular polygons are shown below.
tessellation of
triangles
tessellation of
squares
tessellation of
hexagons
Looking at these three samples of tessellations, the squares can easily

lined up with each other while the triangles and hexagons involved translations.
The vertex point is the point where the shapes come together. The sum
of all the angles of each shape that come together at vertex point is 360º. The
shapes will overlap if the sum is greater than 360º; otherwise, there will be gaps
if the sum is less than 360º.
Naming tessellation can be done by looking at one vertex point. Looking
around a vertex point, start with a shape with the least number of sides, count
the number of sides of each shape at each vertex point. The name of
tessellation then becomes these numbers.
Example in tessellation of triangles, the number of sides is 3 and there
are 6 shapes, therefore it can be named as 3, 3, 3, 3, 3, 3.
For the squares, it can be labeled as 4, 4, 4, 4 and for the hexagon, we
can call it 6, 6, 6.
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Semi-regular tessellations can be formed using a variety of regular

polygons and the arrangement of these polygons at every vertex is identical.
Some examples of semi-regular tessellations are follows.
3, 3, 3, 4, 4 3, 3, 3, 4, 4 3, 4, 4, 6
Tessellations can be used to create

art, puzzles, patterns and designs. Some
famous mathematicians and artists based
their works on the concept of tessellation.
One of them was Maurits Cornelis Escher
who was a Dutch graphic artist who made
mathematically inspired woodcuts,
lithographs, and mezzotints.
Hexagonal tessellation with animals: Study of

Regular Division of the Plane with Reptiles
(1939). Escher reused the design in his 1943
lithograph Reptiles.
Photo credit:
https://en.wikipedia.org/wiki/M._C._Escher
Mindanao Designs, Arts and Culture

There are more than 40 different ethnic groups in the Philippines.
Each group has a distinct culture and language. Several of these ethnic groups
can be distinguished as "tribal groups". They are 'indigenous groups' who
still live in a rather traditional way. Each group lives in a specific region on one
of the islands. You can meet them in parts of Luzon, on some of the Visayas
islands and on Mindanao.
On Mindanao live 18 tribal Filipino groups. The most well-known are the
T’boli and the B'laan (or "Bla-an"). The other groups are the Ata Bagobo,
Banwaon, Bukidnon, Dibabawon, Higaunon, Kalagan, Mamanwa, Mandaya,
Mangguwangan, Manobo, Mansaka, Subanen, Tagakaolo, Teduray and the
Ubo. Most characteristic of these 'indigenous groups' is that they live in a
traditional way, comparable with how the ancestors lived centuries ago.
Weaving is the identity, culture and way of life of these tribal groups. For
these indigenous communities, woven textile conveys their creativity, beliefs
and ideologies and there are some very interesting geometrical themes
imbedded in this art culture. Some of their crafts are as follows:
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The Mandaya people of Davao Oriental

are known for their masterful weaving pattern
ikat in abaca. One of their most popular
textiles is called dagmay. It is distinguished
from other tribal weaving by the intricate
figures and patterns depicting the folklores and
religion of the tribe.
The Mandaya have carried the human
and crocodile motifs to their highest
expression. The crocodile is held sacred as
shown by the frequency with which it appears https://mandayanblood.blogspot.com/2
in their decorative design. 008/08/mandaya-dagmay-weaving.html
The Maranao are famous for their

sophisticated weaving with designs and
colors. Their textiles weaving involves
traditional Southeast Asian backstrap loom
weaving using native decorative
ornamentation. A versatile garb malong is a
hand-woven fabric with beautifully patterned
designs. It can be worn by all genders and
classes, with dominant hues of gold and
purple. Malong made of high-quality silk or
cotton are intended for special occasions and
http://www.ethnicgroupsphilippines.com a yellow malong is considered to be royal or
high class.
The Yakan are indigenous Muslim tribe native to the tropical island of
Basilan in Sulu Archipelago. Yakan people are recognized for their
remarkable techni-color geometric weaves and the distinctive face decorations
used in their traditional ceremonies.
The Yakan are kind and loving people that embody a non-materialistic
culture and live in close-knit communities.
Yakan weaving uses bright, bold and often contrasting colors in big
symmetrical patterns. Inspiration for designs comes from island living and
Islamic sacred geometry.
http://hauteculturefashion.com/yakan-tribe- textiles-mindinao-philippines/
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No other tribe in Davao is more recognized by their colorful clothing than

that of the Bagobos. Whether they are of the giangan, obo or tagabawa tribe,
they are usually spotted wearing head kerchiefs especially during celebrations
or tribal festivities.
Though, Davao has become a “little cosmopolite” in social stature these
days, tribal people still cling to whatever is proudly left of their ancient culture.
Among them is on the way they dress that makes them culturally distinct from
the others. These people also weave abacca cloths of earth tones and make
baskets that are trimmed with beads, fibers and horse’s hair. They have ornate
traditions in weaponry and other metal arts.
You can refer to the source below to help

you further understand the lesson:
Ondaro et al. (2018). Mathematics in the modern world, e-book. Mutya Publishing
House, Inc.
Chapter 3 Lesson 1 - Geometric Designs

http://124.105.95.237/index.php/s/DfWYQc22XZFL6dN
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Activity 1. Now that you know the most essential concepts in the study of
geometry, let us try to check your understanding of these concepts.
You are directed to answer exercises from
MMW Practice Set 5 – A, B, C, D, E, & F

on pages 43 to 48.
Activity 1. Getting acquainted with the essential concepts in the study of

geometry, what also matters is you should also be able to apply
these concepts. You are directed to do the exercise from
MMW Practice Set 5 – G

on page 49.
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Activity 1. Based from the most essential concepts in the study of geometry and
the learning exercises that you have done, please feel free to write
your arguments or lessons learned below.
1.
2.
3.
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Do you have any question for clarification?
Questions / Issues Answers
1.
2.
3.
4.
5.
Polygon Solids Platonic solids
Polyhedra Non-polyhedron Prism
Euler’s formula Symmetry Transformation
Rosette pattern Frieze pattern Tessellation
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ULO-b. Recognize mathematics as a tool in social choices.
(This part is for CASE, CHSE, CCJE, & CTE students only)
Metalanguage
In this section, the essential terms relevant to the study of the methods of voting
and to demonstrate ULO-b will be operationally defined to establish a common frame
of reference as to how the texts work.
1. Social Choice is a theoretical framework for analysis of combining individual

opinions, preferences, interests, or welfares to reach a collective
decision or social welfare in some sense. A non-theoretical example of a
collective decision is enacting a law or set of laws under a constitution.
2. Voting is a method for a group, such as a meeting or an electorate, in order to

make a collective decision or express an opinion usually following discussions,
debates or election campaigns. Democracies elect holders of high office by
voting. Residents of a place represented by an elected official are called
"constituents", and those constituents who cast a ballot for their chosen
candidate are called "voters".
3. A plurality vote or relative majority describes the circumstance when a

candidate or proposition polls more votes than any other but does not receive
more than half of all votes cast.
4. Voting System is a set of rules that determine how elections and referendums
are conducted and how their results are determined. Political electoral systems
are organized by governments, while non-political elections may take place in
business, non-profit organizations and informal organizations. These rules
govern all aspects of the voting process: when elections occur, who is allowed
to vote, who can stand as a candidate, how ballots are marked and cast, how
the ballots are counted (electoral method), limits on campaign spending, and
other factors that can affect the outcome. Political electoral systems are defined
by constitutions and electoral laws, are typically conducted by election
commissions, and can use multiple types of elections for different offices.
5. Banzhaf Power Index, named after John F. Banzhaf III, is a power index
defined by the probability of changing an outcome of a vote where voting rights
are not necessarily equally divided among the voters or shareholders. To
calculate the power of a voter using the Banzhaf index, list all the winning
coalitions, then count the critical voters. A critical voter is a voter who, if he
changed his vote from yes to no, would cause the measure to fail. A voter's
power is measured as the fraction of all swing votes that he could cast.
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Essential Knowledge
1. Introduction to Voting
Voting is a process of choosing someone or something in an election.
When we vote to elect our leaders, the result depends on the number of votes
received by the candidates; when we vote to pass laws, the numbers of support
and against the proposal determine its outcome. In determining the result of
voting is not as simple as it is.
There are different voting systems that have been used in many
democratic forms of government nowadays.
1.1 Plurality Method of Voting. The basis of this method of voting is to

declare winner the candidate with the most number of votes. The winner does
not necessarily have a majority of the votes.
Example.
Five friends are planning to buy pizza from MnR Shopping. There are
three choices of pizza available. They vote for their choice of pizza and the
results are tabulated below. Using the plurality method of voting, which pizza
they will buy?
Name Choice of pizza

Ruben Combo
Louie Pepperoni
Angel Combo
Bong Cheese
Lito Combo
Solution.
Combo pizza received three votes, pepperoni received one vote and
cheese also one vote. The combo pizza received the most number of votes,
therefore combo is the winner. Likewise, combo also received a majority of the
votes (more than 50%), that is three out of five votes or equivalent to 60%.
Example.
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A survey was conducted to 50 students in the campus. They were

asked to rank their preferences of five fast food chains in the city. They mark
1 for their favorite and 5 for the least favorite. The results are shown in the
table below. Based on this preference schedule, which fast food chain is
mostly favored by the students using the plurality method of voting? Which fast
food chain is second place?
Fast Food Chain Rankings

Chow Fung 2 4 4 4 4 5
McRonald 5 5 5 5 5 1
Queen Burger 3 3 1 2 3 2
Jolly Cee 4 2 3 1 1 4
KPC 1 1 2 3 2 3
Number of 3 2 8 9 10 18
voters
Solution.
Count the first-place votes for each fast food chain.
Fast Food Chain First-place votes

Chow Fung 0
McRonald 18
Queen Burger 8
Jolly Cee 9 + 10 = 19
KPC 3+2=5
Since Jolly Cee received the most number of first-place votes; that is,
20 votes, then Jolly Cee is the most favored fast food chain by the students by
plurality voting.
To determine the second choice, count the second-place votes for each
fast food chain.
Fast Food Chain Second-place votes
Chow Fung 3
McRonald 0
Queen Burger 9 + 18 = 27
Jolly Cee 2
KPC 8 + 10 = 18
The most number of second-place votes received by Queen Burger,

therefore Queen Burger win the second place by plurality voting.
1.2 Plurality with Elimination. This is a variation of the plurality method of

voting where it considers a voter’s alternate choices. Using this method, the
first to be eliminated is the alternative with the least number of first-place votes.
If there are two or more of the alternatives with the least number of first-place
votes, all are eliminated unless that would eliminate all alternatives. In that
case, a different method of voting must be used. The process is repeated until
a candidate obtains a majority of the votes.
Example.
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A local TV network sponsors a film festival on which all entries are

produced by local universities in Mindanao. Four entries vie for the Popular
Choice Award which shall be chosen based on votes by the moviegoers. The
preference table is shown below. Using plurality with elimination, what film shall
be declared the winner?
Film Title Rankings

Mindanao Chronicles 3 1 2 3 1 4
Ang Pagbabalik sa
2 3 1 1 4 3
Nakaraan
Marawi: Ang Pagbangon 1 2 4 2 2 1
Ang Probinsya 4 4 3 4 3 2
Number of voters 25 43 38 35 36 23
Solution.
From preference table, “Ang Probinsya” received no first-place votes
and therefore it will be eliminated first. The new preference table is shown
below.
Film Title Rankings
Ang Pagbabalik sa Nakaraan 2 3 1 1 3 2
Marawi: Ang Pagbangon 1 2 3 2 2 1
After the “Ang Probinsya” was deleted, the vote was retaken. The 38
voters in the 3rd column would adjust their vote so that “Marawi: Ang
Pagbangon” becomes their third choice; the 36 voters on the 5th column will
also adjust so that “Ang Pagababalik ng Nakaraan” becomes their 3rd choice;
and the 23 voters on the 6th column will adjust their vote by giving “Marawi: Ang
Pagbangon” remains their first choice, “Ang Pagbabalik ng Nakaraan”
becomes their second choice, and Mindanao Chronicles becomes their third
choice.
Now, take a look on the first-place votes and eliminate the film with the
least number.
Film Title First-place votes

Mindanao Chronicles 43 + 36 = 79
Ang Pagbabalik sa Nakaraan 38 + 35 = 63
Marawi: Ang Pagbangon 25 + 23 = 48
Since the “Marawi: Ang Pagbangon” has the least number of first-place
votes, hence it will be eliminated. After the vote is retaken, below is the new
preference schedule.
Film Title Rankings

Ang Pagbabalik sa 1 2 1 1 2 1
Nakaraan
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Counting the number of first-place votes, Mindanao Chronicles received

79 while “Ang Pagbabalik sa Nakaraan” voted by 121 moviegoers. Therefore,
“Ang Pagbabalik sa Nakaraan” is the winner.
Film Title Rankings

Mindanao Chronicles 43 + 36 = 79
Ang Pagbabalik sa 25 + 38 + 35 + 23 = 121
Nakaraan
1.3 Borda Count Method. This method was named after Jean-Charles de
Borda (1733–1799), who was a member of the French Academy of Sciences.
He devised this method thinking that the plurality method might not give the
best outcome in the election. If there are n candidates in an election, each
voter selects his 1st choice, 2nd choice,…, nth choice. Each candidate receives
n points for each 1st- choice vote, n – 1 points for each 2nd- choice vote, and so
on, with the voter’s least favorite receives 1 point. The candidate with the most
total points is declared the winner.
Example.
Sixty teachers from St. Raphael University would like to hold their R &
R outside the city lights of Davao City. They were asked to rank the three
locations where they could possibly go. Use the Borda Count method to
determine the destination of their trip. The preference schedule is shown
below.
Destination Rankings
Malagos Garden Resort 3 1 2 3 1 1
BlueJaz Water Park 2 3 1 1 2 3
Tamayong Prayer Mountain 1 2 3 2 3 2
Solution.
Using the Borda Count method, each 1st- place vote receives 3 points,
each 2 - place vote receives 2 points and each 3rd- place vote receives 1 point.
nd
Malagos Garden Resort:

1st – place votes 32 x 3 = 96
2 – place votes
nd 15 x 2 = 30
3rd – place votes 13 x 1 = 13
Total 139
BlueJaz Water Park:

2nd – place votes 11 x 2 = 22
Total 109
Tamayong Prayer Mountain:

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2nd – place votes 34 x 2 = 68

Total 112
By Borda count method, the teachers will go to the Malagos Garden

Resort because it received the largest number of points.
1.4 Pairwise Comparison Voting Method. This method is sometimes called

“head-to-head”. Each voter ranks all of the candidates and each candidate is
compared one-on-one with each other candidates. A candidate who won the
match-up receives 1 point, 0.5 points to each of them if they were tie and 0
points for the losing candidate. The candidate who receives the most points is
declared the winner of the election.
Example.
The committee on scholarship had ranked four students vying for a
scholarship sponsored by a certain organization. Use the pairwise comparison
voting method to determine the winner of the grant. The results are shown in
the preference schedule below.
Student Rankings
Juan dela Cruz 3 4 2 1 2
Jose Alonzo 1 2 3 4 3
Bert San Pedro 2 3 1 2 4
Maria Cortes 4 1 4 3 1
Number of voters 10 15 8 9 8
Solution.
Start the matches between each pair of students.
Juan vs Jose
Juan 8 + 9 + 8 = 25
tie
Jose 10 + 15 = 25
Juan vs Bert
Juan 9 + 8 = 17
Bert 10 + 15 + 8 = 33 winner
Juan vs Maria
Juan 10 + 8 + 9 = 27 winner
Maria 15 + 8 = 23
Jose vs Bert
Jose 10 + 15 + 8 = 33 winner
Bert 8 + 9 = 17
Jose vs Maria
Jose 10 + 8 = 18
Maria 15 + 9 + 8 = 32 winner
Bert vs Maria
Bert 10 + 8 + 9 = 27 winner
Maria 15 + 8 = 23
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Construct a table indicating the winner of each match.
vs. Juan Jose Bert Maria

Juan Juan/Jos
Bert Juan
e
Jose Jose Maria
Bert Bert
Maria
By pairwise comparison, Juan received 1.5 points, Jose received 1.5

points, Bert received 2 points and Maria received 1 point. Therefore, Bert San
Pedro will get the scholarship.
2. Flaws of Voting Systems

In 1948, Kenneth J. Arrow outlined various criteria for a fair voting
system and came up with the Arrow’s Impossibility theorem which states that
”it is mathematically impossible to create any system of voting with three or
more candidates that satisfies all four fairness criteria.”
These criteria are as follows:
If candidate receives a majority of the votes, then that

Majority Criterion
candidate should be declared the winner.
If candidate A wins an election and, in a subsequent
Monotonicity election, the only changes are changes in favor of
Criterion candidate A, then candidate A should be declared the
winner.
This is sometimes referred to as Condorcet criterion. If
Head-to-Head candidate A wins when compared head-to-head with
Criterion each of the other candidates, then candidate A should
be declared the winner.
If candidate A wins an election and, in a recount, the
Irrelevant
only changes are that one or more of the losing
Alternatives
candidates withdraw the race, then candidate A should
Criterion
still be declared the winner.
3. Weighted Voting System

A weighted voting is an electoral system in which the voters do not
have the same amount of influence over the result of an election. Some voters
have more weight than the others. This type of voting is usually used in
shareholder meetings where the votes of the shareholders are weighted
according to the number of shares they owned. Another characteristic of
weighted voting system is the quota. It is the required minimum number of
votes to pass a resolution or a measure. Each voting system can be described
using the form
{q: w1, w2, w3, w4,…,wn}
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where q is the quota, w are the weights and n is the number of voters. The
weights are listed in numerical order, starting with the highest weight. Some
examples of the voting systems are as follows:
Voting System Example

In this system, the quota is 4 and there are 7
One person, one
voters where every voter has one vote. To pass
vote
a resolution, it requires 4 votes which is a
{ 4: 1, 1, 1, 1, 1, 1, 1}
majority.
In this system, one of the voters has 11 votes
which is greater than the quota; hence, he
Dictatorship
alone can pass a resolution. The remaining
{ 10: 11, 4, 3, 1, 1}
voters, even if they combine their votes cannot
reach a quota.
Even if all voters in this system combine their
Null System
votes, it cannot reach the quota, thereby, no
{ 15: 5, 4, 2, 2, 1}
resolution can be passed.
The sum of all the votes in this system is equal
to the quota; hence, if anyone withdraws his
Veto Power System
vote, then no resolution can be passed. This is
{ 30: 10, 8, 6, 4, 2}
the case where everyone in the system has a
veto power.
A coalition in a weighted voting system is a set of voters in which they

vote the same way. A winning coalition is a set of voters in which the combine
votes is greater than or equal to the quota. A losing coalition is a set of voters
in which the combine votes is less than the quota. When a voter leaves a
winning coalition and turns it into a losing coalition, then that voter is called a
critical voter. The number of coalitions that can possibly form in a system with
n voters is 2n – 1.
Example.
A corporation has four shareholders, A, B, C, and D, with 49, 48, 2 and
1 shares, respectively. It uses the weighted voting system
{51 : 49, 48, 2, 1}

a. Determine the winning coalitions.
b. For each winning coalition, determine the critical voters.
Solution.
a. The winning coalitions are voters with a total votes equal to or greater
than the quota.
Winning coalition Number of votes

{A, B} 97
{A, C} 51
{A, B, C} 99
{A, B, D} 98
{B, C, D} 51
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{A, B, C, D} 100
b. The critical voter of a winning coalition is a voter that will turn it loser
after leaving the coalition. Table below shows the critical voter for each winning
coalition.
Winning coalition Number of votes Critical voters

{A, B} 97 A, B
{A, C} 51 A, C
{A, B, C} 99 A
{A, B, D} 98 A, B
{B, C, D} 51 B, C, D
{A, B, C, D} 100 none
4. Banzhaf Power Index (BPI).

It is a measure of power of a voter in a weighted voting system which
was derived by John F. Banzhaf III in 1965.
number of times a voter is a critical voter

BPI v  
number of times any voter is a critical power
Example.
Suppose a corporation has four shareholders, A, B, C, and D, with 1, 1,
1 and 1 shares, respectively. It uses the weighted voting system {3 : 1, 1, 1, 1}.
Determine the Banzhaf power index of each voter.
Solution.
Determine the winning coalitions and the critical voters.
Winning coalition Number of votes Critical voter
{A, B, C} 3 A, B, C
{A, B, D} 3 A, B, D
{A, C, D} 3 A, C, D
{B, C, D} 3 B, C, D
{A, B, C, D} 4 none
Calculate the BPI for each voter.

Voter A appears three times as a critical voter and the number of times
any voter is critical voter is 12.
3
BPI  A    0.25
12
Consequently,
3
BPI  B    0.25
12
3
BPI C    0.25
12
3
BPI  D    0.25
12
This is the case that each voter has the same voting power.
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Example.
Suppose a corporation has four shareholders, A, B and C with 4, 1 and
1 shares, respectively. It uses the weighted voting system {4 : 4, 1, 1}.
Determine the Banzhaf power index of each voter.
Solution.
Determine the winning coalitions and the critical voters.
Winning Coalition Number of Votes Critical Voter

A 4 A
A, B 5 A
A, C 5 A
B, C 2 none
A, B, C 6 A
Calculate the BPI for each voter.

Voter A appears four times as a critical voter and the number of times
4
BPI  A   1
4
Voters B and C had never been a critical voter and the number of times
0
BPI  B   0
4
0
BPI C    0
4
This is the case of a dictatorship system where all the powers belong to A only.
You can refer to the source below to help

House, Inc.
Chapter 3 Lesson 5 - Apportionment and Voting

http://124.105.95.237/index.php/s/ZzKqQgqRcnsb6yR
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Activity 1. Now that you know the most essential concepts of the methods of
voting, let us try to check your understanding of these concepts. You
are directed to answer at least two (2) exercises from
MMW Practice Set 8 – B

on pages 85 to 86.
Activity 1. Getting acquainted with the essential concepts of the methods of

voting, what also matters is you should also be able to apply these
concepts. You are directed to answer exercises from
MMW Practice Set 8 – C

on pages 87 to 88.
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Activity 1. Based from the most essential concepts of the methods of voting and
1.
2.
3.
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1.
2.
3.
4.
5.
Borda Count
Voting Majority votes
method
Pairwise Comparison
Plurality voting Preference Table
method
Plurality with
Rankings Popular Choice
Elimination
One-person, One-
Null System Critical Voter
vote System
Dictatorship Banzhaf Power Index Veto Power System
Weighted Voting
Quota Winning Coalition
Systems
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ULO-b. Recognize mathematics as a tool in finance.
(This part is for CBAE, CAE & CHE students only)
Metalanguage
In this section, the essential terms relevant to the study of the mathematics of
finance and to demonstrate ULO-b will be operationally defined to establish a
common frame of reference as to how the texts work.
1. Simple Interest is the amount paid by someone who borrows a certain amount
of money. This term used in bans, loans, installments, and investments. It is
associated with percent, rate, and the length of time, for which the amount of
money is borrowed. There are many types of interest that can be applied.
Simple interest is the simplest and most common type of interest. This type of
interest is applicable for a short-term duration, usually in days, weeks, months,
or even a few years with not so large amounts of money.
2. Compound Interest (or compounding interest) is the interest on a loan or

deposit calculated based on both the initial principal and the accumulated
interest from previous periods. Thought to have originated in 17th century
Italy, compound interest can be thought of as "interest on interest," and
will make a sum grow at a faster rate than simple interest, which is
calculated only on the principal amount. The rate at which compound
interest accrues depends on the frequency of compounding, such that the
higher the number of compounding periods, the greater the compound
interest. Thus, the amount of compound interest accrued on P100
compounded at 10% annually will be lower than that on P100
compounded at 5% semi-annually over the same time period. Since the
interest-on-interest effect can generate increasingly positive returns based
on the initial principal amount, it has sometimes been referred to as the
"miracle of compound interest."
3. Interest rate is the amount a lender charges for the use of assets
expressed as a percentage of the principal. The interest rate is typically
noted on an annual basis known as the annual percentage rate (APR).
The assets borrowed could include cash, consumer goods, or large assets
such as a vehicle or building. Interest is essentially a rental or leasing
charge to the borrower for the use of an asset. In the case of a large asset,
such as a vehicle or building, the lease rate may serve as the interest rate.
When the borrower is considered to be low risk by the lender, the borrower
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will usually be charged a lower interest rate. If the borrower is considered

high risk, the interest rate that they are charged will be higher. Risk is
typically assessed when a lender looks at a potential borrower's credit
score, which is why it's important to have an excellent one if you want to
qualify for the best loans. For loans, the interest rate is applied to the
principal, which is the amount of the loan. The interest rate is the cost of
debt for the borrower and the rate of return for the lender.
4. Maturity Value is the amount due and payable to the holder of a financial
obligation as of the maturity date of the obligation. The term usually refers to
the remaining principal balance on a loan or bond. In the case of a security,
maturity value is the same as par value.
5. Inflation refers to the rise in the prices of most goods and services of daily or
common use, such as food, clothing, housing, recreation, transport, consumer
staples, etc. Inflation measures the average price change in a basket of
commodities and services over time. The opposite and rare fall in the price index
of this basket of items is called ‘deflation’. Inflation is indicative of the decrease
in the purchasing power of a unit of a country’s currency. This is measured in
percentage. The purchasing power of a currency unit decreases as the
commodities and services get dearer. This also impacts the cost of living in a
country. When inflation is high, the cost of living gets higher as well, which
ultimately leads to a deceleration in economic growth. A certain level of inflation
is required in the economy to ensure that expenditure is promoted and hoarding
money through savings is demotivated.
6. Loan is the lending of money by one or more individuals, organizations, or other

entities to other individuals, organizations etc. The recipient (i.e., the borrower)
incurs a debt and is usually liable to pay interest on that debt until it is repaid as
well as to repay the principal amount borrowed. The document evidencing the
debt (e.g., a promissory note) will normally specify, among other things, the
principal amount of money borrowed, the interest rate the lender is charging,
and the date of repayment. A loan entails the reallocation of the subject asset(s)
for a period of time, between the lender and the borrower. The interest provides
an incentive for the lender to engage in the loan. In a legal loan, each of these
obligations and restrictions is enforced by contract, which can also place the
borrower under additional restrictions known as loan covenants. Although this
article focuses on monetary loans, in practice, any material object might be lent.
Acting as a provider of loans is one of the main activities of financial
institutions such as banks and credit card companies. For other institutions,
issuing of debt contracts such as bonds is a typical source of funding.
7. Annual Percentage Yield (APY) is the real rate of return earned on a savings
deposit or investment taking into account the effect of compounding interest.
Unlike simple interest, compounding interest is calculated periodically, and the
amount is immediately added to the balance. With each period going forward,
the account balance gets a little bigger, so the interest paid on the balance gets
bigger as well.
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Essential Knowledge
knowledge that will be laid down in the succeeding pages. Please note that you are not
limited to refer to these resources exclusively. Thus, you are expected to utilize other
books, research articles, and other resources that are available in the university’s library
e.g., ebrary, search.proquest.com, etc.
1. Simple Interest
When you deposit money in a bank – for example, in a savings account –
you are permitting the bank to use your money. The bank may lend the
deposited money to customers to buy cars or make renovations on their homes.
The bank pays you for the privilege of using your money. The amount paid to
you is called interest. If you are the one borrowing money from a bank, the
amount you pay for the privilege of using that money is also called interest.
The amount deposited in a bank or borrowed from a bank is called the
principal. The amount of interest paid is usually given as a percent of the
principal. The percent used to determine the amount of interest is called the
interest rate. If you deposit ₱1000 in a savings account paying 5% interest per
year, ₱1000 is the principal and the annual interest rate is 5%.
Interest paid on the original principal is called simple interest. The formula
used to calculate simple interest is given below.
Simple Interest Formula

The simple interest formula is
I = Prt
where I is the interest, P is the principal, r is the interest rate, and t is the time
period.
In the simple interest formula, the time t is expressed in the same period as
the rate. For example, if the rate is given as an annual interest rate, then the
time is measured in years; if the rate is given as a monthly interest rate, then the
time must be expressed in months. Interest rates are most commonly
expressed as annual interest rates. Therefore, unless stated otherwise, we will
assume the interest rate is an annual interest rate. Interest rates are generally
given as percent. Before performing calculations involving an interest rate, write
the interest rate as a decimal.
Example 1.
Calculate the simple interest earned in 1 year on a deposit of $1000 if the
interest rate is 5%.
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Solution.
Use the simple interest formula. Substitute the following values into the
formula:
P = 1000, r = 5% = 0.05, and t = 1.
I = Prt
I = 1000(0.05)(1)
I = 50
The simple interest earned is ₱50.
Example 2.
Calculate the simple interest due on a 3-month loan of ₱2000 if the interest
rate is 6.5%.
Solution.
Use the simple interest formula. Substitute the values P = 2000 and r = 6.5%
= 0.065 into the formula. Because the interest rate is an annual rate, the time
must be measured in years:
3 months 3 months 3
t   .
1 year 12 months 12
I  Pr t
I  2000  0.065   123 
I  32.5
The simple interest due is ₱32.50.
Example 3.
Calculate the simple interest due on a 2-month loan of ₱500 if the interest
rate is 1.5% per month.
Solution.
Use the simple interest formula. Substitute the values P = 500 and r = 1.5%
= 0.015 into the formula. Because the interest rate is per month, the time period
of the loan is expressed as the number of months: t = 2.
I = Prt
I = 500(0.015)(2)
I = 15
The simple interest due is ₱15.
Remember that in the simple interest formula, time t is measured in the

same period as the interest rate. Therefore, if the time period of a loan with an
annual interest rate is given in days, it is necessary to convert the time period of
the loan to a fractional part of a year. There are two methods for converting time
from days to years: the exact method and the ordinary method. Using the exact
method, the number of days of the loan is divided by 365, the number of days in
a year.
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number of days
Exact method: t 
365
The ordinary method is based on there being an average of 30 days in a month

and 12 months in a year (30)(12) = 360). Using this method, the number of days
of the loan is divided by 360.
number of days
Ordinary method: t 
360
The ordinary method is used by most businesses. Therefore, unless otherwise

stated, the ordinary method will be used in this text.
Example 4.
Calculate the simple interest due on a 45-day loan of ₱3500 if the annual
interest rate is 8%.
Solution.
Use the simple interest formula. Substitute the following values into the
number of days 45
formula: P = 3500, r = 8% = 0.08, and t   .
360 360
I  Pr t
I  3500  0.08   360
45

I  35
The simple interest due is ₱35.
Example 5.
The simple interest charged on a 6-month loan of ₱3000 is ₱150. Find the
simple interest rate.
Solution.
Use the simple interest formula. Solve the equation for r.
I  Pr t
150  3000  r   126 
150  1500r
r  0.10
r  10%
The simple interest rate on the loan is 10%.
Future Value and Maturity Value

When you borrow money, the total amount to be repaid to the lender is the
sum of the principal and interest. This sum is calculated using the following
future value or maturity value formula for simple interest.
The future or maturity value formula for simple interest is
A=P+I
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where A is the amount after the interest, I, has been added to the principal, P.
This formula can be used for loans or investments. When used for a loan, A
is the total amount to be repaid to the lender; this sum is called the maturity
value of the loan. In Example 5, the simple interest charged on the loan of ₱3000
was ₱150. The maturity value of the loan is therefore ₱3000 + ₱150 = ₱3150.
For an investment, such as a deposit in a bank savings account, A is the
total amount on deposit after the interest earned has been added to the principal.
This sum is called the future value of the investment.
Example 6.
Calculate the maturity value of a simple interest, 8-month loan of ₱8000 if
the interest rate is 9.75%.
Solution.
Step 1: Find the interest. Use the simple interest formula. Substitute the values
P = 8000, r = 9.75% = 0.0975, and t = 8/12 into the formula.
I  Pr t
I  8000  0.0975   128 
I  520
Step 2: Find the maturity value. Use the maturity value formula for simple
interest. Substitute the values P = 8000 and I = 520 into the formula.
A=P+I
A = 8000 + 520
A = 8520
The maturity value of the loan is ₱8520.
Recall that the simple interest formula states that I = Prt. We can substitute
Prt for I in the future or maturity value formula, as follows.
A=P+I
A = P + Prt
A = P(1 + rt)
In the final equation, A is the future value of an investment or the maturity value
of a loan, P is the principal, r is the interest rate, and t is the time period.
We used the formula A = P + I in Example 6. The formula A = P(1 + rt) is
used in Examples 7 and 8. Note that two steps were required to find the solution
in Example 6, but only one step is required in Examples 7 and 8.
Example 7.
Calculate the maturity value of a simple interest, 3-month loan of ₱3800.
The interest rate is 6%.
Solution.
Substitute the following values into the formula A = P(1 + rt): P = 3800, r
= 6% = 0.06, and t = 3/12.
A = P(1 + rt)
A = 3800[1 + 0.06(3/12)]
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A = 3800(1 + 0.015)
A = 3800(1.015)
A = 3857
The maturity value of the loan is ₱3857.
Example 8.
Find the future value after 1 year of ₱850 in an account earning 8.2% simple
interest.
Solution.
Because t = 1, rt = r(1) = r. Therefore, 1 + rt = 1 + r = 1 + 0.082 = 1.082.
A = P(1 + rt)
A = 850(1.082)
A = 919.7
The future value of the account after 1 year is ₱919.70.
Recall that the formula A = P + I states that A is the amount after the interest
has been added to the principal. Subtracting P from each side of this equation
yields the following formula.
I=A–P
This formula states that the amount of interest paid is equal to the total amount
minus the principal. This formula is used in Example 9.
Example 9.
The maturity value of a 3-month loan of ₱4000 is ₱4085. What is the simple
interest rate?
Solution.
First find the amount of interest paid. Subtract the principal from the maturity
value.
I=A–P
I = 4085 – 4000
I = 85
Find the simple interest rate by solving the simple interest formula for r.
I = Prt
85 = 4000(r)(3/12)
85 = 1000r
0.085 = r
r = 8.5%
The simple interest rate on the loan is 8.5%.
2. Compound Interest
Simple interest is generally used for loans of 1 year or less. For loans of
more than 1 year, the interest paid on the money borrowed is called compound
interest. Compound interest is interest calculated not only on the original
principal, but also on any interest that has already been earned.
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To illustrate compound interest, suppose you deposit ₱1000 in a savings

account earning 5% interest, compounded annually (once a year).
During the first year, the interest earned is calculated as follows.
I = Prt
I = ₱1000(0.05)(1) = ₱50
At the end of the first year, the total amount in the account is
A=P+I
A = ₱1000 + ₱50 = ₱1050
During the second year, the interest earned is calculated using the amount in
the account at the end of the first year.
I = Prt
I = ₱1050(0.05)(1) = ₱52.50
Note that the interest earned during the second year (₱52.50) is greater than
the interest earned during the first year (₱50). This is because the interest
earned during the first year was added to the original principal, and the interest
for the second year was calculated using this sum. If the account earned simple
interest rather than compound interest, the interest earned each year would be
the same (₱50).
At the end of the second year, the total amount in the account is the sum of
the amount in the account at the end of the first year and the interest earned
during the second year.
A=P+I
A = ₱1050 + 52.50 = ₱1102.50
The interest earned during the third year is calculated using the amount in the
account at the end of the second year (₱1102.50).
I = Prt
I = ₱1102.50(0.05)(1) = ₱55.125 ≈ ₱55.13
The interest earned each year keeps increasing. This is the effect of compound
interest.
In this example, the interest is compounded annually. However, compound
interest can be compounded semiannually (twice a year), quarterly (four times
a year), monthly, or daily. The frequency with which the interest is compounded
is called the compounding period.
If, in the preceding example, interest is compounded quarterly rather than
annually, then the first interest payment on the ₱1000 in the account occurs after
3 months (t = 3/12 = ¼ ; 3 months is one-quarter of a year). That interest is then
added to the account, and the interest earned for the second quarter is
calculated using that sum.
End of 1st quarter: I = Prt = ₱1000(0.05)(3/12) = ₱12.50
A = P + I = ₱1000 + ₱12.50 = ₱1012.50
End of 2nd quarter: I = Prt = ₱1012.50(0.05)(3/12) = ₱12.65625 ≈ ₱12.66
A = P + I = ₱1012.50 + ₱12.66 = ₱1025.16
End of 3rd quarter: I = Prt = ₱1025.16(0.05)(3/12) = ₱12.8145 ≈ $12.81
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A = P + I = ₱1025.16 + ₱12.81 = ₱1037.97

End of 4th quarter: I = Prt = ₱1037.97(0.05)(3/12) = ₱12.974625 ≈ $12.97
A = P + I = ₱1037.97 + ₱12.97 = ₱1050.94
The total amount in the account at the end of the first year is ₱1050.94.
When the interest is compounded quarterly, the account earns more interest
(₱50.94) than when the interest is compounded annually (₱50). In general, an
increase in the number of compounding periods results in an increase in the
interest earned by an account.
In the example above, the formulas I = Prt and A = P + I were used to show
the amount of interest added to the account each quarter. The formula A = P(1
+ rt) can be used to calculate A at the end of each quarter. For example, the
amount in the account at the end of the first quarter is
A = P(1 + rt)
A = 1000[1 + 0.05(3/12)]
A = 1000(1.0125)
A = 1012.50
This amount, ₱1012.50, is the same as the amount calculated above using the
formula A = P + I to find the amount at the end of the first quarter.
Example 1.
You deposit ₱500 in an account earning 6% interest, compounded
semiannually. How much is in the account at the end of 1 year?
Solution.
The interest is compounded every 6 months. Calculate the amount in the
account after the first 6 months. t = 6/12 .
A = P(1 + rt)
A = 500[1 + 0.06(6/12)]
A = 515
Calculate the amount in the account after the second 6 months.
A = P(1 + rt)
A = 515[1 + 0.06(6/12)]
A = 530.45
The total amount in the account at the end of 1 year is ₱530.45.
In calculations that involve compound interest, the sum of the principal and
the interest that has been added to it is called the compound amount. In
Example 1, the compound amount is ₱530.45.
The calculations necessary to determine compound interest and compound
amounts can be simplified by using a formula. Consider an amount P deposited
into an account paying an annual interest rate r, compounded annually.
The interest earned during the first year is
I = Prt
I = Pr(1)
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I = Pr
The compound amount A in the account after 1 year is the sum of the original
principal and the interest earned during the first year:
A=P+I
A = P + Pr
A = P(1 + r)
During the second year, the interest is calculated on the compound amount at
the end of the first year, P(1 + r).
I = Prt
I = P(1 + r)r(1)
I = P(1 + r)r
The compound amount A in the account after 2 years is the sum of the
compound amount at the end of the first year and the interest earned during the
second year:
A=P+I
A = P(1 + r) + P(1 + r)r
A = 1[P(1 + r)] + [P(1 + r)]r
A = P(1 + r)(1 + r)
A = P(1 + r)2
During the third year, the interest is calculated on the compound amount at the
end of the second year, P(1 + r)2.
I = Prt
I = P(1 + r)2r(1)
I = P(1 + r)2r
The compound amount A in the account after 3 years is the sum of the
compound amount at the end of the second year and the interest earned during
the third year:
A=P+I
A = P(1 + r)2 + P(1 + r)2r
A = 1[P(1 + r)2] +[ P(1 + r)2]r
A = P(1 + r)2(1 + r)
A = P(1 + r)3
Note that the compound amount at the end of each year is the previous
year’s compound amount multiplied by (1 + r). The exponent on (1 + r) is equal
to the number of compounding periods. Generalizing from this, we can state that
the compound amount after n years is A = P(1 + r)n.
In deriving this equation, interest was compounded annually; therefore, t =
1. Applying a similar argument for more frequent compounding periods, we
derive the following compound amount formula. This formula enables us to
calculate the compound amount for any number of compounding periods per
year.
Compound Amount Formula
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The compound amount formula is

A = P(1 + r/n)nt
where A is the compound amount, P is the amount of money deposited, r is the
annual interest rate, n is the number of compounding periods per year, and t is
the number of years.
To illustrate how to determine the values of the variables in this formula, consider
depositing ₱5000 in an account earning 6% interest, compounded quarterly, for
a period of 3 years.
The amount deposited is P: P = 5000
The annual interest rate is 6%: r = 6% = 0.06
When interest is compounded quarterly,
there are four compounding periods per year: n = 4
The time is 3 years: t=3
Recall that compound interest can be compounded annually (once a year),
semiannually (twice a year), quarterly (four times a year), monthly, or daily. The
possible values of n (the number of compounding periods per year) are recorded
in the table below.
Values of n (Number of Compounding
Periods per Year)
If interest is
Then n =
compounded
Annually 1
Semiannually 2
Quarterly 4
Monthly 12
Daily 360
Example 2.
Calculate the compound amount when ₱10,000 is deposited in an account
earning 8% interest, compounded semiannually, for 4 years.
Solution.
Use the compound amount formula.
P = 10,000, r = 8% = 0.08, n = 2, t = 4
A = P(1 + r/n)nt
A = 10,000[1 + (0.08/2)](2)(4)
A = 10,000(1 + 0.04)8
A = 10,000(1.04)8
A ≈ 10,000(1.368569)
A ≈ 13,685.69
The compound amount after 4 years is approximately ₱13,685.69.
Example 3.
Calculate the future value of ₱5000 earning 9% interest, compounded daily,
for 3 years.
Solution.
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Use the compound amount formula.

P = 5000, r = 9% = 0.09, n = 360, t = 3
A = P(1 + r/n)nt
A = 5000[1 + (0.09/360)](360)(3)
A = 5000(1 + 0.00025)1080
A = 5000(1.00025)1080
A ≈ 5000(1.3099202)
A ≈ 6549.60
The future value after 3 years is approximately ₱6549.60.
Present Value
The present value of an investment is the original principal invested, or the
value of the investment before it earns any interest. Therefore, it is the principal,
P, in the compound amount formula. Present value is used to determine how
much money must be invested today in order for an investment to have a specific
value at a future date.
Present Value Formula
The present value formula is
A
P nt
 r
 n
1 
 
where P is the original principal invested, A is the compound amount, r is the
annual interest rate, n is the number of compounding periods per year, and t is
the number of years.
Example 4.
How much money should be invested in an account that earns 8% interest,
compounded quarterly, in order to have ₱30,000 in 5 years?
Solution.
Use the present value formula.
A = 30,000, r = 8% = 0.08, n = 4, t = 5
A 30,000 30,000 30,000
P nt
 45
 20

 r  0.08  1.02 1.485947396
1 n  1 4 
   
P  20,189.14
₱20,189.14 should be invested in the account in order to have ₱30,000 in 5
years.
Inflation
We have discussed compound interest and its effect on the growth of an
investment. After your money has been invested for a period of time in an
account that pays interest, you will have more money than you originally
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deposited. But does that mean you will be able to buy more with the compound
amount than you were able to buy with the original investment at the time you
deposited the money? The answer is not necessarily, and the reason is the
effect of inflation.
Suppose the price of a large-screen TV is ₱1500. You have enough money
to purchase the TV, but decide to invest the ₱1500 in an account paying 6%
interest, compounded monthly. After 1 year, the compound amount is ₱1592.52.
But during that same year, the rate of inflation was 7%. The large-screen TV
now costs
₱1500 plus 7% of ₱1500 = ₱1500 + 0.07(₱1500)
= ₱1500 + ₱105
= ₱1605
Because ₱1592.52 < ₱1605, you have actually lost purchasing power. At
the beginning of the year, you had enough money to buy the large-screen TV;
at the end of the year, the compound amount is not enough to pay for that same
TV. Your money has actually lost value because it can buy less now than it could
1 year ago.
Inflation is an economic condition during which there are increases in the
costs of goods and services. Inflation is expressed as a percent; for example,
we speak of an annual inflation rate of 7%.
To calculate the effects of inflation, we use the same procedure we used to

calculate compound amount. This process is illustrated in Example below.
Although inflation rates vary dramatically, in this section we will assume constant
annual inflation rates, and we will use annual compounding in solving inflation
problems.
Example 5.
Suppose your annual salary today is ₱35,000. You want to know what an
equivalent salary will be in 20 years – that is, a salary that will have the same
purchasing power. Assume a 6% inflation rate.
Solution.
Use the compound amount formula, with
P = 35,000, r = 6% = 0.06, t = 20. The inflation rate is an annual rate, so n = 1.
nt 120
 r  0.06 
A  P  1    35,000  1 
 n  1 
A  35,000 1.06 
20
A  35,000  3.20713547 
A  112,249.74
Twenty years from now, you need to earn an annual salary of approximately
₱112,249.74 in order to have the same purchasing power.
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You can refer to the sources below to help

House, Inc.
Chapter 3 Lesson 4 - The Mathematics of Finance
http://124.105.95.237/index.php/s/LZnDZaRJPxa6YcG
Chapter 3 Lesson 4.1
http://124.105.95.237/index.php/s/Nw26brn4bHcWHiQ
http://124.105.95.237/index.php/s/ZYGMdkNfNQpJTg8
http://124.105.95.237/index.php/s/cbNi5mN78Siyg8w
http://124.105.95.237/index.php/s/SPaFxd9QFQxgqNg
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Activity 1. Now that you know the most essential concepts in the study of the
mathematics of finance, let us try to check your understanding of
these concepts. You are directed to answer exercises from
MMW Practice Set 7 – A, B, C, F, and G

on pages 58 to 59 and 65 to 68.
Activity 1. Getting acquainted with the essential concepts in the study of the
mathematics of finance, what also matters is you should also be able
to apply these concepts. You are directed to solve at least three (3)
problems each from
MMW Practice Set 7 – E and H

on pages 63 to 64 and 69 to 70.
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Activity 1. Based from the most essential concepts in the study of the
mathematics of finance and the learning exercises that you have
done, please feel free to write your arguments or lessons learned
below.
1.
2.
3.
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1.
2.
3.
4.
5.
Simple Interest Compound Interest Annually

Principal Compounding period Semiannually
Interest Rate Exact Method Quarterly
Time (Period) Ordinary Method Present Value
Future Value Inflation Maturity
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ULO-b. Recognize mathematics as a tool in linear programming.
(This part is for CEE, CCE & CAFAE students only)
Metalanguage
In this section, the essential terms relevant to the study in linear programming and
to demonstrate ULO-b will be operationally defined to establish a common frame of
reference as to how the texts work.
1. Linear Programming
Linear programming (LP, also called linear optimization) is a method to achieve
the best outcome (such as maximum profit or lowest cost) in a mathematical
model whose requirements are represented by linear relationships. Linear programming
is a special case of mathematical programming (also known as mathematical
optimization).
More formally, linear programming is a technique for the optimization of
a linear objective function, subject to linear equality and linear inequality constraints.
Its feasible region is a convex polytope, which is a set defined as the intersection of
finitely many half spaces, each of which is defined by a linear inequality. Its objective
function is a real-valued affine (linear) function defined on this polyhedron. A linear
programming algorithm finds a point in the polytope where this function has the
smallest (or largest) value if such a point exists.
Linear programming can be applied to various fields of study. It is widely used in
mathematics, and to a lesser extent in business, economics, and for some engineering
problems. Industries that use linear programming models include transportation,
energy, telecommunications, and manufacturing. It has proven useful in modeling
diverse types of problems in planning, routing, scheduling, assignment, and design.
2. Simplex Method
The simplex method or simplex algorithm is used for calculating the optimal
solution to the linear programming problem. In other words, the simplex algorithm is
an iterative procedure carried systematically to determine the optimal solution from the
set of feasible solutions.
Firstly, to apply the simplex method, appropriate variables are introduced in the
linear programming problem, and the primary or the decision variables are equated to
zero. The iterative process begins by assigning values to these defined variables. The
value of decision variables is taken as zero since the evaluation in terms of the graphical
approach begins with the origin. Therefore, x1 and x2 is equal to zero.
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The decision maker will enter appropriate values of the variables in the problem
and find out the variable value that contributes maximum to the objective function and
removes those values which give undesirable results. Thus, the value of the objective
function gets improved through this method. This procedure of substitution of variable
value continues until any further improvement in the value of the objective function is
possible.
3. Feasible Region
In mathematical optimization, a feasible region, feasible set, search space,
or solution space is the set of all possible points (sets of values of the choice variables)
of an optimization problem that satisfy the problem's constraints, potentially
including inequalities, equalities, and integer constraints. This is the initial set
of candidate solutions to the problem, before the set of candidates has been narrowed
down.
In many problems, the feasible set reflects a constraint that one or more
variables must be non-negative. In pure integer programming problems, the feasible set
is the set of integers (or some subset thereof). In linear programming problems, the
feasible set is a convex polytope: a region in multidimensional space whose boundaries
are formed by hyperplanes and whose corners are vertices.
4. Maximization Problem
Maximization refers to the act of making something as large or great as possible. If
you are interested in the maximization of profits, you want to get as much money as
possible out of your investments.
Maximization comes from the Latin word maximum or "greatest." The
maximization of output is a reasonable goal for a manufacturing company, though it
should not be at the expense of the workers' health and safety. Your art teacher is not
interested in talent — he or she is going for the maximization of each student's creative
potential.
5. Variable Constraints
A constraint is a condition of an optimization problem that the solution must
satisfy. 1) If an inequality constraint holds with equality at the optimal point, the
constraint is said to be binding, as the point cannot be varied in the direction of the
constraint even though doing so would improve the value of the objective function. 2)
If an inequality constraint holds as a strict inequality at the optimal point (that is, does
not hold with equality), the constraint is said to be non-binding, as the point could be
varied in the direction of the constraint, although it would not be optimal to do so. Under
certain conditions, as for example in convex optimization, if a constraint is non-binding,
the optimization problem would have the same solution even in the absence of that
constraint. 3) If a constraint is not satisfied at a given point, the point is said to
be infeasible.
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Essential Knowledge
1. Inequalities
In this unit, you will learn how to solve inequalities. Solving' an inequality means
finding all of its solutions. A solution' of an inequality is a number which when
substituted for the variable makes the inequality a true statement.
Here is an example: Consider the inequality
x–2>5
When we substitute 8 for x, the inequality becomes 8 – 2 > 5. Thus, x = 8 is a solution
of the inequality. On the other hand, substituting –2 for x yields the false statement (–
2) – 2 > 5. Thus x = –2 is NOT a solution of the inequality. Inequalities usually have
many solutions.
As in the case of solving equations, there are certain manipulations of the
inequality which do not change the solutions. Here is a list of "permissible''
manipulations:
Rule 1. Adding/subtracting the same number on both sides.
Example. The inequality x – 2 > 5 has the same solutions as the inequality x > 7.
(The second inequality was obtained from the first one by adding 2 on both sides.)
Rule 2. Switching sides and changing the orientation of the inequality sign.
Example. The inequality 5 – x > 4 has the same solutions as the inequality 4 < 5
– x. (We have switched sides and turned the “>” into a “<”).
Last, but not least, the operation which is at the source of all the trouble with
inequalities:
Rule 3a. Multiplying/dividing by the same POSITIVE number on both sides.
Rule 3b. Multiplying/dividing by the same NEGATIVE number on both sides AND
changing the orientation of the inequality sign.
Example. This sounds harmless enough. The inequality 2x ≤ 6 has the same
solutions as the inequality x ≤ 3. (We divided by +2 on both sides).
Example. The inequality –2x > 4 has the same solutions as the inequality x < –2.
(We divided by (–2) on both sides and switched “>” to “<”.)
But Rule 3 prohibits fancier moves: The inequality x2 > x DOES NOT have the
same solutions as the inequality x > 1. (We were planning on dividing both sides
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by x, but we cannot, because we do not know at this point whether x will be

positive or negative!)
Only “easy” inequalities are solved using these three rules; most inequalities are
solved by using different techniques.
Let us solve some inequalities:

Example 1.
Consider the inequality
2x + 5 < 7.
The basic strategy for inequalities and equations is the same: isolate x on one side,
and put the "other stuff" on the other side. Following this strategy, let us move +5 to
the right side. We accomplish this by subtracting 5 on both sides (Rule 1) to obtain
(2x + 5) – 5 < 7 – 5,
after simplification we obtain
2x < 2.
Once we divide by +2 on both sides (Rule 3a), we have succeeded in isolating x on
the left:
2x 2
 ,
2 2
or simplified,
x < 1.
All real numbers less than 1 solve the inequality. We say that the "set of solutions'' of
the inequality consists of all real numbers less than 1. In interval notation, the set of
solutions is the interval  ,1 .
Example 2.
Find all solutions of the inequality
5 – x ≤ 6.
Let us start by moving the “5” to the right side by subtracting 5 on both sides (Rule 1):
(5 – x) – 5 ≤ 6 – 5,
or simplified,
– x ≤ 1.
How do we get rid of the “–” sign in front of x? Just multiply by (–1) on both sides (Rule
3b), changing “≤” to “≥” along the way:
(– x) ∙ (–1) ≥ 1∙ (–1)
or simplified
x ≥ –1.
All real numbers greater than or equal to –1 satisfy the inequality. The set of solutions
of the inequality is the interval  1,   .
Example 3.
Solve the inequality
2(x – 1) > 3(2x + 3).
Let us simplify first:
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2x – 2 > 6x + 9.
There is more than one route to proceed; let's take this one: subtract 2x on both sides
(Rule 1).
(2x – 2) – 2x > (6x + 9) – 2x,
and simplify:
–2 > 4x + 9
Next, subtract 9 on both sides (Rule 1):
–2 – 9 > (4x + 9) – 9;
simplify to obtain
–11 > 4x.
Then, divide by 4 (Rule 3a):
11 4 x
 ,
4 4
and simplify again:
11
 x,
4
It looks nicer, if we switch sides (Rule 2).
11
x .
4
 11 
In interval notation, the set of solutions looks like this:  ,   .
 4
Example 4.
x 3 2
Solve the inequality  .
2 3
Solution.
We start by multiplying both sides by 2 (Rule 3a):
4
x 3  .
3
We are done, once we subtract 3 on both sides (Rule 1):
4
x   3,
3
and simplify to
5
x .
3
5
The set of solutions consists of all numbers greater than or equal to  .
3
2. System of Linear Equations
A system of equations is a collection of two or more equations with a same set of
unknowns. In solving a system of equations, we try to find values for each of the
unknowns that will satisfy every equation in the system.
The equations in the system can be linear or non-linear. This tutorial reviews
systems of linear equations.
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The problem can be expressed in narrative form or the problem can be expressed
in algebraic form.
Example of a narrative statement of a system of the equations:

The air-mail rate for letters to Europe is 45 cents per half-ounce and to Africa as 65
cents per half-ounce. If Shirley paid ₱18.55 to send 35 half-ounce letters abroad, how
many did she send to Africa?
Example of an algebraic statement of the same system of the equations:
0.45 x  0.65y  18.55

x  y  35
A system of linear equations can be solved four different ways:

 Substitution
 Gaussian Elimination
 Matrices
 Graphing
In this review, we are going to show you how to convert a narrative statement of
the problem to an equivalent algebraic of the problem. In other words, we are going
to show you how to translate word problems into algebraic equations.
System of Equations in Two Variables

A system of equations is a collection of two or more equations with the same set
of unknowns. In solving a system of equations, we try to find values for each of the
unknowns that will satisfy every equation in the system.
A problem can be expressed in narrative form or the problem can be expressed
in algebraic form.
Let us start with an example stated in narrative form. We will convert it to an equivalent
equation in algebraic form, and then we will solve it.
Example.
A total of ₱12,000 is invested in two funds paying 9% and 11% simple interest. If
the yearly interest is ₱1,180, how much of the ₱12,000 is invested at each rate?
Before you work this problem, you must know the definition of simple interest.
Simple interest can be calculated by multiplying the amount invested at the interest
rate.
Solution:
We have two unknowns: the amount of money invested at 9% and the amount of
money invested at 11%. Our objective is to find these two numbers.
Sentence (1) ''A total of ₱12,000 is invested in two funds paying 9% and 11% simple
interest.'' can be restated as (The amount of money invested at 9%) + (The amount
of money invested at 11%) ₱12,000.
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Sentence (2) ''If the yearly interest is ₱1,180, how much of the ₱12,000 is invested at
each rate?'' can be restated as (The amount of money invested at 9%) x 9% + (The
amount of money invested at 11% x 11%) total interest of ₱1,180.
It is going to get tiresome writing the two phrases (The amount of money invested
at 9%) and (The amount of money invested at 11%) over and over again. So let's write
them in shortcut form. Call the phrase (The amount of money invested at 9%) by the
symbol x and call the phrase (The amount of money invested at 11%) by the symbol
y.
Let's rewrite sentences (1) and (2) in shortcut form.
x  y  P12,000 (1)
0.09 x  0.11y  P1,180 (2)
We have converted a narrative statement of the problem to an equivalent
algebraic statement of the problem. Let us solve this system of equations.
The Method of Substitution:
The method of substitution involves five steps:
Step 1: Solve for y in equation (1).
x  y  P12,000
y  P12,000  x
Step 2: Substitute this value for y in equation (2). This will change equation (2) to
an equation with just one variable, x.
0.09 x  0.11y  P1180
0.09 x  0.11 P12,000  x   P1180
Step 3: Solve for x in the translated equation (2).
0.09 x  0.11 P12,000  x   P1180
0.09 x  P1,320  0.11x  P1180
0.02x  P140
x  P 7,000
Step 4: Substitute this value of x in the y equation you obtained in Step 1.
x  y  P12,000
P 7,000  y  P12,000
y  P 5,000
Step 5: Check your answers by substituting the values of x and y in each of the
original equations. If, after the substitution, the left side of the equation equals the right
side of the equation, you know that your answers are correct.
x  y  P12,000
P 7,000  P 5,000  P12,000
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and
0.09 x  0.11y  P1180
0.09  P 7,000   0.11 P 5,000   P1180
The Method of Elimination:
The process of elimination involves five steps:
In a two-variable problem rewrite the equations so that when the equations are
added, one of the variables is eliminated, and then solve for the remaining variable.
Step 1: Change equation (1) by multiplying equation (1) by –0.09 to obtain a new
and equivalent equation (1).
x  y  P12,000 (1)
0.09 x  0.09y  P1,080 new
(1)
Step 2: Add new equation (1) to equation (2) to obtain equation (3).
0.09 x  0.09 y  P1,080 new
0.09 x  0.11y  P1,180 (1)
0.02y  100 (2)
y  P 5,000 (3)
Step 3: Substitute y = P5,000 in equation (1) and solve for x.
x  y  P12,000
x  P 5,000  P12,000
x  P 7,000
Step 4: Check your answers in equation (2). Does
0.09 x  0.11y  P1,180?
0.09  P 7,000   0.11 P 5,000   P1,180
The Method of Matrices:
This method is essentially a shortcut for the method of elimination.
Rewrite equations (1) and (2) without the variables and operators. The left column
contains the coefficients of the x's, the middle column contains the coefficients of the
y's, and the right column contains the constants.
 1 1 12000 (1)
  (2)
0.09 0.11 1180 
The objective is to reorganize the original matrix into one that looks like
1 0 a (1)
  (2)
0 1 b 
where a and b are the solutions to the system.
Step 1. Manipulate the matrix so that the number in cell 11 (row 1-col 1) is 1. In
this case, we don't have to do anything. The number 1 is already in the cell.
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Step 2: Manipulate the matrix so that the number in cell 21 is 0. To do this we

rewrite the matrix by keeping row 1 and creating a new row 2 by adding -0.09 x row 1
to row 2.
0.09 Row 1  Row 2  new Row 2
1 1 12000  (1)
  (2)
0 0.02 100 
Step 3: Manipulate the matrix so that the cell 22 is 1. Do this by multiplying row 2
by 50.
 1 112000  (1)
  (2)
0 1 5000 
Step 4: Manipulate the matrix so that cell 12 is 0. Do this by adding

 Row 2  Row 1  new Row 1
 1 0 7000  (1)
  (2)
0 1 5000 
You can read the answers off the matrix as x = P7,000 and y = P5,000.
Systems of Equations in Three Variables

It is often desirable or even necessary to use more than one variable to model a
situation in a field such as business, science, psychology, engineering, education,
and sociology, to name a few. When this is the case, we write and solve a system of
equations in order to answer questions about the situation.
If a system of linear equations has at least one solution, it is consistent. If the
system has no solutions, it is inconsistent. If the system has an infinity number of
solutions, it is dependent. Otherwise it is independent.
A linear equation in three variables is an equation equivalent to the equation
Ax + By + Cz + D = 0
where A, B, C, and D are real numbers and A, B, C, and D are not all 0.
Example.
John inherited ₱25,000 and invested part of it in a money market account, part in
municipal bonds, and part in a mutual fund. After one year, he received a total of
₱1,620 in simple interest from the three investments. The money market paid 6%
annually, the bonds paid 7% annually, and the mutually fund paid 8% annually. There
was ₱6,000 more invested in the bonds than the mutual funds. Find the amount John
invested in each category.
Solution.
There are three unknowns:
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(1) The amount of money invested in the money market account.

(2) The amount of money invested in municipal bonds.
(3) The amount of money invested in a mutual fund.
Let us rewrite the paragraph that asks the question we are to answer.
[The amount of money invested in the money market account + [The amount of
money invested in municipal bonds ] + [The amount of money invested in a mutual
fund = ₱25,000 ].
The 6% interest on [ The amount of money invested in the money market account
]+ the 7% interest on [ The amount of money invested in municipal bonds ] + the 8%
interest on [ The amount of money invested in a mutual fund ] = ₱1, 620.
[The amount of money invested in municipal bonds ] - [ The amount of money
invested in a mutual fund ] = ₱6,000.
It is going to get boring if we keep repeating the phrases
(1) The amount of money invested in the money market account.
(2) The amount of money invested in municipal bonds.
(3) The amount of money invested in a mutual fund.
Let us create a shortcut by letting symbols represent these phrases. Let
x = The amount of money invested in the money market account.
y = The amount of money invested in municipal bonds.
z = The amount of money invested in a mutual fund.
in the three sentences, and then rewrite them.
The sentence [ The amount of money invested in the money market account ] + [
The amount of money invested in municipal bonds ] + [ The amount of money invested
in a mutual fund ] = ₱25,000 can now be written as x + y + z = ₱25,000.
The sentence The 6% interest on [ The amount of money invested in the money
market account ] + the 7% interest on [ The amount of money invested in municipal
bonds ] + the 8% interest on [ The amount of money invested in a mutual fund ] = ₱1,
620 can now be written as
0.06x + 0.07y + 0.08z = ₱1, 620.
The sentence [ The amount of money invested in municipal bonds ] – [ The
amount of money invested in a mutual fund ] = P6,000 can now be written as y – z =
₱6,000.
We have converted the problem from one described by words to one that is
described by three equations.
x  y  z  P 25,000 (1)
0.06 x  0.07y  0.08z  P1,620 (2)
y  z  P 6,000 (3)
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Matrix Solution
The process of using matrices is essentially a shortcut of the process of
elimination. Each row of the matrix represents an equation and each column
represents coefficients of one of the variables.
Step 1: Create a three-row by four-column matrix using coefficients and the
constant of each equation.
 1 1 1 25,000 
 
0.06 0.07 0.08 1,620 
 0 1 1 6,000 

The vertical lines in the matrix stands for the equal signs between both sides of
each equation. The first column contains the coefficients of x, the second column
contains the coefficients of y, the third column contains the coefficients of z, and the
last column contains the constants.
We want to convert the original matrix
 1 1 1 25,000 
 
0.06 0.07 0.08 1,620 
 0 1 1 6,000 

to the following matrix.
1 0 0 a 
 
0 1 0 b 
0 0 1 c 
 
Because then you can read the matrix as x = a, y = b, and z = c.
Step 2: We work with column 1 first. The number 1 is already in cell 11(Row 1 –
Col 1). Add –0.06 times Row 1 to Row 2 to form a new Row 2.
0.06 Row 1  Row 2  new Row 2
1 1 1 25,000 
 
0 0.01 0.02 120 
0 1 1 6,000 

Step 3: We will now work with column 1. We want 1 in Cell 22, and we achieve
this by multiply Row 2 by .
100 Row 2  new Row 2
 1 1 1 25,000 
 
0 1 2 12,000 
0 1 1 6,000 
 
Step 4: Let's now manipulate the matrix so that there are zeros in Cell 12 and
Cell 32. We do this by adding –1 times Row 2 to Row 1 and Row 3 for a new Row 1
and a new Row 3.
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 Row 2  Row 1  new Row 1

 Row 2  Row 3  new Row 3 
 1 0 113,000 
 
0 1 2 12,000 
0 1 1 2,000 
 
Step 5: Let's now manipulate the matrix so that there is a 1 in Cell 33. We do this
by multiplying Row 3 by –1.
1Row 3  new Row 3
 1 0 113,000 
 
0 1 2 12,000 
0 1 1 2,000 
 
Step 6: Let's now manipulate the matrix so that there are zeros in Cell 13 and
Cell 23. We do this by adding Row 3 to Row 1 for a new Row 1 and adding –2 times
Row 3 to Row 2 for a new Row 3.
1Row 3  Row 1  new Row 1
2 Row 3  Row 2  new Row 2
 1 0 0 15,000 
 
0 1 0 8,000 
0 1 1 2,000 
 
You can now read the answers off the matrix:

x = ₱15,000, y = ₱8,000, and z = ₱2,000.
3. Modeling with Linear Programming

Linear programming (LP) is an application of matrix algebra used to solve a broad
class of problems that can be represented by a system of linear equations. A linear
equation is an algebraic equation whose variable quantity or quantities are in the first
power only and whose graph is a straight line. LP problems are characterized by an
objective function that is to be maximized or minimized, subject to a number of
constraints. Both the objective functions and the constraints must be formulated in
terms of a linear equality or inequality. Typically, the objective function will be to
maximize profits or to minimize costs.
Properties of the LP Models
The following assumptions must be satisfied to justify the use of linear
programming:
Linearity – all functions, such as costs, prices, and technological requirements,
must be linear in nature.
Certainty – all parameters are assumed to be known with certainty.
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Nonnegativity – negative values of decision variables are unacceptable.

Proportionality – This property requires the contribution of each decision variable
in both the objective function and the constraints to be directly proportional to the
value of the variable.
Additivity – This property requires the total contribution of all the variables in the
objective function and in the constraints to be the direct sum of the individual
contributions of each variable
The LP model, as in any OR model, has three basic components.

1. Decision variables that we seek to determine.
2. Objective (goal) that we need to optimize (maximize or minimize).
3. Constraints that the solution must satisfy.
3.1 Graphical LP Solution

The steps in solving an LP problem graphically are introduced briefly below.
Step 1. Formulate the LP problem.
Formulation refers to translating the real-world problem into a format of
mathematical equations that represent the objective function and the constraint set.
Often, data gathering, problem definition, and problem formulation are the most
important (and the most difficult, time consuming, and expensive) steps when using
any OR tool.
A thorough understanding of the problem is necessary in order to formulate it
correctly. During the formulation stage, an OR specialist may discover new insights
into the problem that may change the scope of the original problem. For this reason,
it’s very important to obtain the help of those who work most closely with the system
being studied. They can help the OR specialist collect the necessary data and
correctly define the problem so that he or she can create a valid model. In formulating
an LP problem, it often helps to put all of the relevant information into a table.
Step 2. Construct a graph and plot the constraint lines.
Constraint lines represent the limitations on available resources. Usually,
constraint lines are drawn by connecting the horizontal and vertical intercepts found
from each constraint equation.
Step 3. Determine the valid side of each constraint line.
The simplest way to start is to plug in the coordinates of the origin (0,0) and see
whether this point satisfies the constraint. If it does, then all points on the origin side
of the line are feasible (valid), and all points on the other side of the line are infeasible
(invalid). If (0,0) does not satisfy the constraint, then all points on the other side and
away from the origin are feasible (valid), and all points on the origin side of the
constraint line are infeasible (invalid).
Step 4. Identify the feasible solution region.
The feasible solution region represents the area on the graph that is valid for all
constraints. Choosing any point in this area will result in a valid solution.
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Step 5. Plot two objective function lines to determine the direction of

improvement.
Improvement is in the direction of greater value when the objective is to maximize
the objective function, and is in the direction of lesser value when the objective is to
minimize the objective function. The objective function lines do not have to include
any of the feasible region to determine the desirable direction to move.
Step 6. Find the most attractive corner.
Optimal solutions always occur at corners. The most attractive corner is the last
point in the feasible solution region touched by a line that is parallel to the two objective
function lines drawn in step 5 above. When more than one corner corresponds to an
optimal solution, each corner and all points along the line connecting the corners
correspond to optimal solutions.
Step 7. Determine the optimal solution by algebraically calculating
coordinates of the most attractive corner.
Step 8. Determine the value of the objective function for the optimal
solution.
Example.
The company uses wood and labor to produce tables and chairs. Recall that unit
profit for tables is ₱6, and unit profit for chairs is ₱8. There are 300 board feet (bf) of
wood available, and 110 hours of labor available. It takes 30 bf and 5 hours to make
a table, and 20 bf and 10 hours to make a chair. Table 1 contains the information for
the LP problem. We will go through the step-by-step process of solving this problem
graphically.
Resource Table (X1) Chair (X2) Available

Wood (bf) 30 20 300
Labor (hr) 5 10 110
Unit Profit 6 8
Solution.
Step 1. Formulate the LP problem.
Table above will help us formulate the problem. The bottom row is used to
formulate the objective function. Objective functions are developed in such a way as
to be either maximized or minimized. In this case, the company’s management wishes
to maximize unit profit. The wood and labor rows are used to formulate the constraint
set. Finally, the nonnegativity conditions are stated.
Maximize: Z = 6X1 + 8X2 (objective function)
Subject to:
30X1 + 20X2 < 300 (wood constraint: 300 bf available)
5X1 + 10X2 < 110 (labor constraint: 110 hours available)
X1, X2 > 0 (nonnegativity conditions)
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Since only two variables (wood and labor) exist in this problem, it can be solved
graphically. If there were more than two variables, the graph would have to be more
than two dimensions.
Step 2. Construct the graph and plot constraint lines.
Draw the graph with the x axis representing the number of tables and the y axis
representing the number of chairs. Plot the two constraint lines by finding the x and y
intercepts for the two constraint equations in the following manner.
First, rewrite the constraint inequalities as equalities and solve to obtain the
intercepts:
Wood: Labor:
30 X1  20 X 2  300 5 X1  10 X 2  110
Set X2 = 0 and solve for X1: Set X2 = 0 and solve for X1:
30 X1  300 5 X1  110
X1  10 tables X1  22 tables
Next, set X1 = 0 and solve for X2: Next, set X1 = 0 and solve for X2:
20 X 2  300 10 X 2  110
X 2  15 chairs X 2  11 chairs
Now plot the wood constraint line, using the intercepts X1 = 10 and X2 = 15. Plot the
labor constraint line, using the intercepts X1 = 22 and X2 = 11. See Figure below.
Step 3. Determine the valid side of each constraint line.

We will use the origin (0,0) to check the valid side for both constraint lines. 30(0)
+ 20(0) < 300 is valid, so we know the side toward the origin (0,0) is the valid side of
the wood constraint line. 5(0) + 10(0) < 110 also is valid, so we know the side toward
the origin (0,0) is the valid side of the labor constraint line. We can draw arrows
indicating the valid side of each constraint line. See figure below.
We could have chosen any point to test for the valid side of the line. For example,
setting X1 = 20 and X2 = 10 (clearly on the other side, away from the origin) for the
wood constraint line, we get 30(20) + 20(10) < 300, which is not valid. In other words,
there simply isn’t enough wood to make 20 tables and 10 chairs.
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Step 4. Identify the feasible region.

The feasible region is the area on the valid side of both constraint lines. Any point
located on the invalid side of a constraint line is infeasible. Because of the
nonnegativity conditions, the feasible region is restricted to the positive quadrant. See
figure above.
Step 5. Plot two objective function lines to determine the direction of
improvement.
First, we’ll arbitrarily set profit, Z = 48, and then set profit, Z = 72. We’ll find the x and
y intercepts when Z = 48 and when Z = 72, and plot the two lines.
Set Z = 48, Set Z = 72,

Set X2 = 0 and solve for X1: Set X2 = 0 and solve for X1:
48  6  X1  72  6  X1 
X1  8 X1  12
Next, set X1 = 0 and solve for X2: Next, set X1 = 0 and solve for X2:
48  8 X 2 72  8 X 2
X2  6 X2  9
Now plot the objective function lines when Z = 48 and Z = 72. See figure below. We
can see from the two objective function lines that as we move away from the origin
(0,0), Z increases.
Step 6. Find the most attractive corner.

Since we want to maximize Z, we will draw a line parallel to the objective function lines
that touches the last point in the feasible region while moving away from the origin.
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This identifies the most attractive corner, which gives us the amounts of wood and
labor that will result in the maximum profit (maximize Z). Thus, it represents the
optimal solution to the problem (see figure below).
Step 7. Determine the optimal solution by algebraically calculating

coordinates of the most attractive corner.
The most attractive corner lies at the intersection of the wood and labor constraint
lines. Therefore, coordinates for the most attractive corner can be found by
simultaneously solving the constraint equations (wood and labor):
30X1 + 20X2 = 300 (wood)
5X1 + 10X2 = 110 (labor)
To do so, multiply the labor equation by -2 and add it to the wood equation so the
X2 variable becomes zero and we can solve for X1.
30 X1  20 X 2  300 (wood)
2  5 X1  10 X 2  110  (labor)
20 X1  0  80
X1  4 tables
Next, substitute the number of tables calculated above into either of the constraint
equations to find the number of chairs. For this example, we will substitute into both
equations to illustrate that the same value is found.
Wood constraint: Labor constraint:
30  4   20 X 2  300 5  4   10 X 2  110
120  20 X 2  300 20  10 X 2  110
20 X 2  300  120 10 X 2  110  20
X 2  9 chairs X 2  9 chairs
Thus, the company’s optimal solution is to make four tables and nine chairs. In this
case, you could read this solution off the graph by finding the values on the x and y
axes corresponding to the most attractive corner. However, when the most attractive
corner corresponds to an optimal solution with fractions, it is not possible to read
directly from the graph. For example, the optimal solution to this problem might have
been 3.8 tables and 9.2 chairs, which we probably would not be able to read
accurately from the graph.
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Step 8. Determine the value of the objective function for the optimal
solution. Plug in the number of tables and chairs and solve for Z:
Z = ₱6(4) + ₱8(9) = ₱96
Thus, we find that maximum profit of ₱96 can be obtained by producing four tables
and nine chairs.
3.2 The Simplex Method: Maximization

For linear programming problems involving two variables, the graphical solution
method introduced previously is convenient. However, for problems involving more
than two variables or problems involving a large number of constraints, it is better to
use solution methods that are adaptable to computers. One such method is called the
simplex method, developed by George Dantzig in 1946. It provides us with a
systematic way of examining the vertices of the feasible region to determine the
optimal value of the objective function.
We introduce this method with an example.
Suppose we want to find the maximum value of z = 4x1 + 6x2, where x1 ≥ 0 and
x2 ≥ 0, subject to the following constraints.
 x1  x2  11
x1  x2  27
2 x1  5 x2  90
Since the left-hand side of each inequality is less than or equal to the right-hand side,
there must exist nonnegative numbers s1, s2, and s3 that can be added to the left side
of each equation to produce the following system of linear equations.
 x1  x2  s1  11
x1  x2  s2  27
2x1  5 x2  s3  90
The numbers s1, s2, and s3 are called slack variables because they take up the
“slack” in each inequality.
Standard Form of a Linear Programming Problem
A linear programming problem is in standard form if it seeks to maximize the
objective z = c1x1 + c2x2 + … + cnxn function subject to the constraints
a11x1  a12 x2      a1n x n  b1
a21x1  a22 x2      a2 n x n  b2
am1x1  am 2 x2      amn xn  bm
where ai ≥ 0 and bi ≥ 0. After adding slack variables, the corresponding system of
constraint equations is
a11x1  a12 x2      a1n x n  s1  b1
a21x1  a22 x2      a2 n x n  s2  b2
am1x1  am 2 x2      amn xn  sm  bm
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where si ≥ 0.
Remark: Note that for a linear programming problem in standard form, the objective
function is to be maximized, not minimized.
A basic solution of a linear programming problem in standard form is a solution
(x1, x2, …, xn, s1, s2, …, sm) of the constraint equations in which at most m variables
are nonzero – the variables that are nonzero are called basic variables. A basic
solution for which all variables are nonnegative is called a basic feasible solution.
The Simplex Tableau

The simplex method is carried out by performing elementary row operations on a
matrix that we call the simplex tableau. This tableau consists of the augmented
matrix corresponding to the constraint equations together with the coefficients of the
objective function written in the form
–c1x1 – c2x2 – . . . – cnxn + (0)s1 + (0)s2 + . . . + (0)sm + z = 0.
In the tableau, it is customary to omit the coefficient of z. For instance, the simplex
tableau for the linear programming problem
z  4 x1  6 x2 - Objective Function
 x1  x2  s1  11 

x1  x2  s2  27  Contraints
2 x1  5 x2  s3  90 
is as follows
Basic
x1 x2 s1 s2 s3 b Variables
–1 1 1 0 0 11 s1
1 1 0 1 0 27 s2
2 5 0 0 1 90 s3
–4 -6 0 0 0 0
Current z-value
For this initial simplex tableau, the basic variables are s1, s2, and s3 and the
nonbasic variables (which have a value of zero) are x1 and x2. Hence, from the two
columns that are farthest to the right, we see that the current solution is
x1 = 0, x2 = 0, s1 = 11, s2 = 27, and s3 = 90.
This solution is a basic feasible solution and is often written as
(x1, x2, s1, s2, s3) = (0, 0, 11, 27, 90).
The entry in the lower–right corner of the simplex tableau is the current value of z.
Note that the bottom–row entries under x1 and x2 are the negatives of the coefficients
of x1 and x2 in the objective function z = 4x1 + 6x2.
To perform an optimality check for a solution represented by a simplex tableau,
we look at the entries in the bottom row of the tableau. If any of these entries are
negative (as above), then the current solution is not optimal.
Pivoting
Once we have set up the initial simplex tableau for a linear programming problem,
the simplex method consists of checking for optimality and then, if the current solution
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is not optimal, improving the current solution. (An improved solution is one that has a
larger z-value than the current solution.) To improve the current solution, we bring a
new basic variable into the solution––we call this variable the entering variable. This
implies that one of the current basic variables must leave, otherwise we would have
too many variables for a basic solution––we call this variable the departing variable.
We choose the entering and departing variables as follows.
1. The entering variable corresponds to the smallest (the most negative) entry
in the bottom row of the tableau.
2. The departing variable corresponds to the smallest nonnegative ratio of bi/aij
in the column determined by the entering variable.
3. The entry in the simplex tableau in the entering variable’s column and the
departing variable’s row is called the pivot. Finally, to form the improved solution, we
apply Gauss-Jordan elimination to the column that contains the pivot, as illustrated in
the following example. (This process is called pivoting.)
Example.
Use the simplex method to find an improved solution for the linear programming
problem represented by the following tableau.
The objective function for this problem is z = 4x1 + 6x2.
Basic
–1 1 1 0 0 11 s1
1 1 0 1 0 27 s2
2 5 0 0 1 90 s3
–4 –6 0 0 0 0
Solution.
Note that the current solution x1 = 0, x2 = 0, s1 = 11, s2 = 27, and s3 = 90
corresponds to a z–value of 0. To improve this solution, we determine that x2 is the
entering variable, because –6 is the smallest entry in the bottom row.
Basic
–1 1 1 0 0 11 s1
1 1 0 1 0 27 s2
2 5 0 0 1 90 s3
–4 –6 0 0 0 0
Entering
To see why we choose x2 as the entering variable, remember that z = 4x1 + 6x2. Hence,
it appears that a unit change in x2 produces a change of 6 in z, whereas a unit change
in x1 produces a change of only 4 in z.
To find the departing variable, we locate the bi’s that have corresponding positive
elements in the entering variables column and form the following ratios.
11 27 90
 11,  27,  18
1 1 5
Here the smallest positive ratio is 11, so we choose s1as the departing variable.
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Basic
–1 1 1 0 0 11 s1 Departing
1 1 0 1 0 27 s2
2 5 0 0 1 90 s3
–4 –6 0 0 0 0
Entering
Note that the pivot is the entry in the first row and second column. Now, we use Gauss-
Jordan elimination to obtain the following improved solution.
Before Pivoting After Pivoting

x1 x2 s1 s2 s3 b x1 x2 s1 s2 s3 b
–1 1 1 0 0 11 –1 1 1 0 0 11
1 1 0 1 0 27 2 0 –1 1 0 16
2 5 0 0 1 90 7 0 –5 0 1 35
–4 –6 0 0 0 0 –10 0 6 0 0 66
The new tableau now appears as follows.

Basic
–1 1 1 0 0 11 x2
2 0 –1 1 0 16 s2
7 0 –5 0 1 35 s3
–10 0 6 0 0 66
Note that x2 has replaced s1 in the basis column and the improved solution
(x1, x2, s1, s2, s3) = (0, 11, 0, 16, 35)
has a z-value of z = 4x1 + 6x2 = 4(0) + 6(11) = 66.
The improved solution is not yet optimal since the bottom row still has a negative entry.
Thus, we can apply another iteration of the simplex method to further improve our
solution as follows. We choose x1 as the entering variable. Moreover, the smallest
11 16 35
nonnegative ratio of  11,  8,  5 is 5, so s3 is the departing variable.
1 2 7
Gauss-Jordan elimination produces the following.
–1 1 1 0 0 11 –1 1 1 0 0 11
2 0 –1 1 0 16 2 0 –1 1 0 16
7 0 –5 0 1 35 1 0 –5/7 0 1/7 5
–10 0 6 0 0 66 –10 0 6 0 0 66
0 1 2/7 0 1/7 16
0 0 3/7 1 –2/7 6
1 0 –5/7 0 1/7 5
0 0 –8/7 0 10/7 116
Thus, the new simplex tableau is as follows.
Basic
0 1 2/7 0 1/7 16 x2
0 0 3/7 1 –2/7 6 s2
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1 0 –5/7 0 1/7 5 x1
0 0 –8/7 0 10/7 116
In this tableau, there is still a negative entry in the bottom row. Thus, we choose as
the entering variable and s2 as the departing variable, as shown in the following
tableau.
Basic
0 1 2/7 0 1/7 16 s1
0 0 3/7 1 –2/7 6 s2 Departing
1 0 –5/7 0 1/7 5 x1
0 0 –8/7 0 10/7 116
Entering
By performing one more iteration of the simplex method, we obtain the following tableau.
Basic
0 1 0 –2/3 1/3 12 s1
0 0 1 7/3 –2/3 14 s2
1 0 0 5/3 –1/3 15 x1
0 0 0 8/3 2/3 132 Maximum z-value
In this tableau, there are no negative elements in the bottom row. We have therefore
determined the optimal solution to be
(x1, x2, s1, s2, s3) = (15, 12, 14, 0, 0).
with
z = 4x1 + 6x2 = 4(15) + 6(12) = 132.
Remark: Ties may occur in choosing entering and/or departing variables. Should this
happen, any choice among the tied variables may be made.
3.3 The Simplex Method: Minimization

In previous section, we applied the simplex method only to linear programming
problems in standard form where the objective function was to be maximized. In this
section, we extend this procedure to linear programming problems in which the
objective function is to be minimized.
A minimization problem is in standard form if the objective function

w = c1x1 + c2x2 + . . . + cnxn
is to be minimized, subject to the constraints
a11x1  a12 x2      a1n x n  b1
a21x1  a22 x2      a2 n x n  b2
am1x1  am 2 x2      amn xn  bm
where xi ≥ 0 and bi ≥ 0. The basic procedure used to solve such a problem is to convert
it to a maximization problem in standard form, and then apply the simplex method as
discussed.
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Example.
Minimization Problem: Find the minimum value of
w  0.12x1  0.15 x2 - Objective Function
60 x1  x2  300 

12 x1  6 x2  36  Contraints
10 x1  30 x2  90 
where x1 ≥ 0 and x2 ≥ 0. The first step in converting this problem to a maximization
problem is to form the augmented matrix for this system of inequalities. To this
augmented matrix we add a last row that represents the coefficients of the objective
function, as follows.
 60 60 300 
 12 6 36 

 10 30 90 
 
 
0.12 0.15 0 
Next, we form the transpose of this matrix by interchanging its rows and columns.
 60 12 10 0.12 
 60 6 30 0.15 

 
 
300 36 90 0 
Note that the rows of this matrix are the columns of the first matrix, and vice versa.
Finally, we interpret the new matrix as a maximization problem as follows. (To do this,
we introduce new variables, y1, y2, and y3.) We call this corresponding maximization
problem the dual of the original minimization problem.
Dual Maximization Problem: Find the maximum value of

z  300y1  36y 2  90y 3 - Dual Objective Function
60 y1  12y 2  10 y 3  0.12 
 Contraints
60 y1  6 y 2  30 y 3  0.15 
where y1 ≥ 0, y2 ≥ 0, and y3 ≥ 0.
As it turns out, the solution of the original minimization problem can be found by
applying the simplex method to the new dual problem, as follows.
Basic
y1 y2 y3 s1 s2 b Variables
60 12 10 1 0 0.12 s1 Departing
60 6 30 0 1 0.15 s2
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–300 -36 -90 0 0 0

Entering
Basic
1 1/5 1/6 1/60 0 1/500 y1
0 -6 20 -1 1 3/100 s2 Departing
0 24 -40 0 0 3/5
Entering
Basic
1 1/4 0 1/40 -1/120 7/4000 y1
0 -3/10 1 -1 1 3/2000 y3
0 24 0 3 2 33/50
x1 x2
Thus, the solution of the dual maximization problem is z = 33/50/= 0.66. The x-values
corresponding to this optimal solution are obtained from the entries in the bottom row
corresponding to slack variable columns. In other words, the optimal solution occurs
When x1 = 3 and x2 = 2.
The fact that a dual maximization problem has the same solution as its original
minimization problem is stated formally in a result called the von Neumann Duality
Principle, after the American mathematician John von Neumann (1903–1957).
The von Neumann Duality Principle

The objective value w of a minimization problem in standard form has a minimum
value if and only if the objective value z of the dual maximization problem has a
maximum value. Moreover, the minimum value of w is equal to the maximum value of
z.
3.4 The Simplex Method: Mixed Constraints

In previous discussion, we looked at linear programming problems that occurred
in standard form. The constraints for the maximization problems all involved ≤
inequalities, and the constraints for the minimization problems all involved ≥
inequalities.
Linear programming problems for which the constraints involve both types of
inequalities are called mixed-constraint problems. For instance, consider the
following linear programming problem below.
Minimization Problem: Find the minimum value of

z  x1  x2  2x3 - Objective Function
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2 x1  x2  x3  50 

2 x1  x2  36  Contraints
x1  x3  10 
where x1 ≥ 0, x2 ≥ 0, and x3 ≥ 0. Since this is a maximization problem, we would expect
each of the inequalities in the set of constraints to involve ≤. Moreover, since the first
inequality does involve ≤, we can add a slack variable to form the following equation.
2x1 + x2 + x3 + s1 = 50.
For the other two inequalities, we must introduce a new type of variable, called a
surplus variable, as follows.
2x1  x2  s2  36
x1  x3  s3  10
Notice that surplus variables are subtracted from (not added to) their inequalities. We
call s1 and s3 surplus variables because they represent the amount that the left side
of the inequality exceeds the right side. Surplus variables must be nonnegative.
Now, to solve the linear programming problem, we form an initial simplex tableau
as follows.
Basic
x1 x2 x3 s1 s2 s3 b Variables
2 1 1 1 0 0 50 s1
2 1 0 0 -1 0 36 s2
1 0 1 0 0 -1 10 s3 Departing
-1 -1 -2 0 0 0 0
Entering
You will soon discover that solving mixed-constraint problems can be difficult.
One reason for this is that we do not have a convenient feasible solution to begin the
simplex method. Note that the solution represented by the initial tableau above.
(x1, x2, x3, s1, s2, s3) = (0, 0, 0, 50, -36, -10).
is not a feasible solution because the values of the two surplus variables are negative.
In fact, the values x1 = x2 = x3 = 0 do not even satisfy the constraint equations. In order
to eliminate the surplus variables from the current solution, we basically use “trial and
error.” That is, in an effort to find a feasible solution, we arbitrarily choose new entering
variables. For instance, in this tableau, it seems reasonable to select x3 as the entering
variable. After pivoting, the new simplex tableau becomes
Basic
1 1 0 1 0 1 40 s1
2 1 0 0 -1 0 36 s2 Departing
1 0 1 0 0 -1 10 x3
1 -1 0 0 0 -2 20
Entering
The current solution (x1, x2, x3, s1, s2, s3) = (0, 0, 10, 40, -36, 0) is still not feasible, so
we choose x2 as the entering variable and pivot to obtain the following simplex tableau.
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Basic
-1 0 0 1 1 1 4 s1 Departing
2 1 0 0 -1 0 36 x2
1 0 1 0 0 -1 10 x3
3 0 0 0 -1 -2 56
Entering
At this point, we finally obtained a feasible solution

(x1, x2, x3, s1, s2, s3) = (0, 36, 10, 4, 0, 0)
From here on, we apply the simplex method as usual. Note that the entering variable
here is s3 because its column has the most negative entry in the bottom row. After
pivoting one more time, we obtain the following final simplex tableau.
Basic
-1 0 0 1 1 1 4 s3
2 1 0 0 -1 0 36 x2
0 0 1 1 1 0 14 x3
1 0 0 2 1 0 64
Note that this tableau is final because it represents a feasible solution and there are
no negative entries in the bottom row. Thus, we conclude that the maximum value of
the objective function is
z = 64 (maximum value)
and this occurs when
x1 = 0, x2 = 36, and x3 = 14.
A Minimization Problem with Mixed Constraints
Example.
Find the minimum value of
w  4 x1  2x2  x3 - Objective Function
2 x1  3 x2  4 x3  14 

3 x1  x2  5 x3  4  Contraints
x1  4 x2  3 x3  6 
where x1 ≥ 0, x2 ≥ 0, and x3 ≥ 0.
Solution.
First, we rewrite the objective function by multiplying each of its coefficients by as
follows.
w  4 x1  2x2  x3 - Revised Objective Function
Maximizing this revised objective function is equivalent to minimizing the original
objective function. Next, we add a slack variable to the first inequality and subtract
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surplus variables from the second and third inequalities to produce the following initial
simplex tableau.
Basic
2 3 4 1 0 0 14 s1
3 1 5 0 -1 0 4 s2 Departing
1 4 3 0 0 -1 6 s3
4 2 1 0 0 0 0
Entering
Note that the bottom row has the negatives of the coefficients of the revised objective
function. Another way of looking at this is that for minimization problems (in
nonstandard form), the bottom row of the initial simplex consists of the coefficients of
the original objective function.
As with maximization problems with mixed constraints, this initial simplex tableau
does not represent a feasible solution. By trial and error, we discover that we can
choose x2 as the entering variable and s2 as the departing variable. After pivoting, we
obtain the following tableau.
Basic
-7 0 -11 1 3 0 2 s1
3 1 5 0 -1 0 4 x2
-11 0 -17 0 4 -1 -10 s3
-2 0 -9 0 2 0 -8
From this tableau, we can see that the choice of x2 as the entering variable was a
good one. All we need to do to transform the tableau into one that represents a feasible
solution is to multiply the third row by -1, as follows.
Basic
-7 0 -11 1 3 0 2 s1
3 1 5 0 -1 0 4 x2
11 0 17 0 -4 1 10 s3 Departing
-2 0 -9 0 2 0 -8
Entering
Now that we have obtained a simplex tableau that represents a feasible solution, we
continue with our standard pivoting operations as follows.
Basic
2/17 0 0 1 7/17 11/17 144/17 s1
-4/17 1 0 0 3/17 -5/17 18/17 x2 Departing
11/17 0 1 0 -4/17 1/17 10/17 x3
65/17 0 0 0 -2/17 9/17 -46/17
Entering
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Basic
2/3 -7/3 0 1 0 4/3 6 s1
-4/3 17/3 0 0 1 -5/3 6 s2
1/3 4/3 1 0 0 -1/3 2 x3
11/3 2/3 0 0 0 1/3 -2
Finally, we conclude that the maximization value of the revised objective function is
z = –2, and hence the minimum value of the original objective function is w = 2 (the
negative of the entry in the lower-right corner), and this occurs when
x1 =0, x2 = 0, and x3 = 2.
You can refer to the sources below to help

you further understand the lesson.
House, Inc.
Chapter 3 Lesson 3 - Linear Programming
http://124.105.95.237/index.php/s/PC6CJSd3KmrXaMG

http://124.105.95.237/index.php/s/WKtEGFb5rJRMDfP

http://124.105.95.237/index.php/s/QbRCykbTxEPqdj8
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Activity 1. Now that you know the most essential concepts in linear
programming, let us try to check your understanding of these
concepts. You are directed to answer exercises from
MMW Practice Set 6 – A, B, and C

on pages 50 to 52.
Activity 1. Getting acquainted with the essential concepts in linear

programming, what also matters is you should also be able to apply
these concepts. You are directed to solve at least two (2) problems
each from
MMW Practice Set 6 – D and E

on pages 53 to 57.
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Activity 1. Based from the most essential concepts in linear programming and
1.
2.
3.
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1.
2.
3.
4.
5.
Method by Method by
Linear Inequality
Elimination Substitution
System of Linear Gauss-Jordan
Pivoting
Inequality Elimination
Graphical Solution Matrix Method Optimal Solution
Maximization Minimization Mixed Constraints
Objective Function Constraints Feasible Region
79

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UNIVERSITY OF MINDANAO

College of Arts and Sciences Education

Physically Distanced but Academically Engaged

Self-Instructional Manual (SIM) for Self-Directed Learning (SDL)

Course/Subject: GE 4 – Mathematics in the Modern World

Name of Teacher: Louie Resti S. Rellon

SIM Prepared by: Prof. Ronnie O. Alejan

THIS SIM/SDL MANUAL IS A DRAFT VERSION ONLY.

THIS IS NOT FOR REPRODUCTION, COMMERCIAL, AND

Week 6-7: Unit Learning Outcomes (ULO):

Big Picture in Focus

1. Geometry is a branch of mathematics concerned with questions of shape,

3. Space is the boundless three-dimensional extent in which objects and events

4. Transformation refers to the movement of objects in the coordinate plane.

1. Recognizing and Analyzing Geometric Shapes

Number of Sum of internal Measurement of each

A polyhedron is a solid made of flat surfaces; each surface is a polygon

There are five platonic solids, namely:

Tetrahedron Cube Octahedron

 4 faces  6 faces  8 faces

Euler’s Formula deals with shapes called polyhedra. It states that

Polyhedron Faces Vertices Edges F+V–E=2

Square Prism: Cross- Cube Cross-

Triangular Prism Cross- Pentagonal Prism Cross-

1.2.3 Pyramid is a polyhedron made by connecting a base to an apex.

Triangular Square Pentagonal

Non-polyhedra are solids with curved surfaces, or a mix of curved and

Sphere is a perfectly round object in three-

Cylinder is a three-dimensional solid object

Torus is a solid formed by revolving a small circle

Cone is made by rotating a triangle. The triangle

Translation is a transformation of an object where Rotation is a transformation of an object by

Reflection is a transformation of an object where Glide Reflection is a composition of

3. PATTERNS and DIAGRAMS

Symmetries are an integral part of nature and the arts of cultures

When a figure undergoes an isometry and the resulting image coincides

Translation Rotation Reflection

Reflection symmetry is also called bilateral symmetry. The reflection

If a figure can be rotated about a point in such a way that it is rotated

This design has 6-fold

3.2 Rosette Pattern

Triskelion logo with cyclic Oval frame with dihedral

The cyclic and dihedral symmetry groups are known as rosette

3.3 Frieze Pattern

The patterns repeat and extend infinitely in both directions.

A frieze group is the set of symmetries of a frieze pattern, that is

Mathematician John H. Conway also created nicknames for each frieze

IUC Example / nickname Description

p1g1 Glide-reflections and

pm11 Vertical reflection

p112 Translations and 180°

p1m1 Translations and

Examples of tessellation of regular polygons are shown below.

Looking at these three samples of tessellations, the squares can easily

Semi-regular tessellations can be formed using a variety of regular

Tessellations can be used to create

Hexagonal tessellation with animals: Study of

Mindanao Designs, Arts and Culture

The Mandaya people of Davao Oriental

The Maranao are famous for their

No other tribe in Davao is more recognized by their colorful clothing than

You can refer to the source below to help

Chapter 3 Lesson 1 - Geometric Designs