BBMP1103 Mathematics For MGT (V Apr18) Bookmark

BBMP1103
Mathematics for Management

BBMP1103
MATHEMATICS
FOR MANAGEMENT
Assoc Prof Dr Zurni Omar
Noraziah Man
Hawa Ibrahim
Fatinah Zainon
Azizan Saaban
Copyright © Open University Malaysia (OUM)

Project Director: Prof Dato’ Dr Mansor Fadzil
Open University Malaysia
Module Writers: Assoc Prof Dr Zurni Omar

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

Noraziah Haji Man
Assoc Prof Dr Zurni Omar
Hawa Ibrahim
Universiti Utara Malaysia
Enhancer: Dr Raziana Che Aziz

pen University Malaysia
Developed by: Centre for Instructional Design and Technology
First Edition, November 2007

Second Edition, October 2011
Third Edition, April 2013 (rs)
Fourth Edition, December 2016 (rs)
Fifth Edition, April 2018 (rs)
Copyright © Open University Malaysia (OUM), April 2018, BBMP1103
All rights reserved. No part of this work may be reproduced in any form or by any means without
the written permission of the President, Open University Malaysia (OUM).

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

1.1 Sets of Real Numbers 1
1.2 Polynomials 3
1.3 Factoring Polynomials 10
1.4 Partial Fractions 14
1.4.1 The Cover-up Rule 15
1.4.2 The Combine Method 18
1.4.3 Improper Fractions 21
Summary 24
Key Terms 24
Self-Test 24
References 25
Topic 2 Linear and Quadratic Functions 26

2.1 Linear Equations and Graph Sketching 27
2.1.1 Linear Equations 27
2.1.2 Slope 28
2.1.3 Types of Straight Lines 29
2.1.4 Graph Sketching 30
2.2 Parallel and Perpendicular Lines 32
2.3 Quadratic Equations and Graph Sketching 37
2.4 Intersection Point 45
Summary 51
Key Terms 51
References 51
Topic 3 Application of Linear and Quadratic Functions 52

3.1 Demand and Supply Functions 53
3.1.1 Market Equilibrium Point 54
3.2 Cost and Revenue Functions 58
3.2.1 Break-even Point Analysis 60
3.3 Maximum and Minimum Values 62
Summary 65
Key Terms 66
References 66
iv  TABLE OF CONTENTS
Topic 4 Matrices 67
4.1 Classifications/Types of Matrices 70
4.1.1 Row Matrix (Row Vector) 70
4.1.2 Column Matrix (Column Vector) 70
4.1.3 Square Matrix 70
4.1.4 Diagonal Matrix 71
4.1.5 Special Matrix 71
4.2 Matrix Operations 72
4.2.1 Equality of Matrix 73
4.2.2 Transpose 74
4.2.3 Matrix Addition 74
4.2.4 Matrix Subtraction 75
4.2.5 Scalar Multiplication 76
4.2.6 Matrix Multiplication 76
4.3 Determinant 79
4.3.1 Minor of Element aij 81
4.3.2 Cofactor of Element aij 83
4.4 Inverse Matrix 85
4.5 Solving Linear Equation System using Matrices 87
4.5.1 Matrix Equation 87
4.5.2 Inverse Matrix Method 88
4.5.3 Cramer's Rule 92
Summary 97
Key Terms 101
References 101
Topic 5 Exponential and Logarithmic Fuctions 102

5.1 Properties of Exponentials 103
5.2 Equations and Graphs 105
5.3 Logarithmic Functions 108
5.4 Properties of Logarithms 109
5.5 Equations and Graphs 113
5.5.1 Application on Growth and Decay Processes 115
5.5.2 Investment with Compound Interest 118
Summary 122
Key Terms 122

TABLE OF CONTENTS  v
Topic 6 Compound Interest: Present Value and Future Value 123

6.1 Compound Interest 123
6.1.1 Compound Interest Formula 127
6.2 Effective and Nominal Rate 131
6.3 Future and Present Value 133
6.4 Equation of Value 135
Summary 140
Key Terms 141
Reference 141
Topic 7 Differentiation 142

7.1 Constant Rule 143
7.2 Power Rule 144
7.3 Constant Times a Function Rule 145
7.4 Rules of Sums and Differences of Functions 146
7.5 Product Rule 149
7.6 Quotient Rule 150
7.7 Chain Rule 152
7.8 Power Rule (A Special Case of the Chain Rule) 155
Summary 159
Key Terms 160
References 160
Topic 8 Application of Differentiation 161

8.1 Second and Third Degree Differentiation 162
8.2 Total Cost Function (C) 164
8.2.1 Average Total Cost Function ( C ) 165
8.2.2 Marginal or Ultimate Total Cost Function (C') 165
8.2.3 Minimising Total Cost 166
8.3 Total Revenue Function (R) 170
8.3.1 Average Total Revenue Function ( R ) 170
8.3.2 Marginal or Ultimate Total Revenue Function (R') 170
8.3.3 Maximising Revenue Functions 171
8.4 Total Profit Function (Π) 175
8.4.1 Average Total Profit Function ( ∏ ) 176
8.4.2 Ultimate Total Profit Function (Π') 177
8.4.3 Maximising Total Profit 179
Summary 183
Key Terms 183
References 183

vi  TABLE OF CONTENTS
Topic 9 Integration 184

9.1 Anti-Derivatives 184
9.2 Definite Integrals 190
9.3 Integration by Substitution 194
Summary 199
Key Terms 200
References 200
Topic 10 Applications of Integration 201

10.1 Calculating the Area Under a Graph 202
10.2 Application of Integration in Economics and Business 206
10.2.1 Consumer and Producer Surpluses 206
10.2.2 Finding the Function from its Marginal Function 211
Summary 217
Key Terms 217
References 217
Answers 218

COURSE GUIDE  ix
COURSE GUIDE DESCRIPTION

You must read this Course Guide carefully from the beginning to the end. It tells
you briefly what the course is about and how you can work your way through the
course material. It also suggests the amount of time you are likely to spend in
order to complete the course successfully. Please keep on referring to the Course
Guide as you go through the course material as it will help you to clarify
important study components or points that you might miss or overlook.
INTRODUCTION
BBMP1103 Mathematics for Management is one of the courses offered at Open
University Malaysia (OUM). This course is worth 3 credit hours and should be
covered over 8 to 15 weeks.
COURSE AUDIENCE
This is a core course for all learners of the Bachelor Degree in Business
Administration and Bachelor Degree in Business Accounting programmes.
As an open and distance learner, you should be acquainted with learning

independently and being able to optimise the learning modes and environment
available to you. Before you begin this course, please ensure that you have the
right course material and understand the course requirements as well as how the
course is conducted.
STUDY SCHEDULE
It is a standard OUM practice that learners accumulate 40 study hours for every
credit hour. As such, for a three-credit hour course, you are expected to spend 120
study hours. Table 1 gives an estimation of how the 120 study hours could be
accumulated.

x  COURSE GUIDE
Table 1: Estimation of Time Accumulation of Study Hours
Study
Study Activities
Hours
Briefly go through the course content and participate in initial discussions 3
Study the module 60
Attend 3 to 5 lecture and seminar sessions 10
Online participation 12
Revision 15
Assignment(s), Test(s) and Examination(s) 20
TOTAL STUDY HOURS ACCUMULATED 120
COURSE OUTCOMES
By the end of this course, you should be able to:
1. Demonstrate factual knowledge including the mathematical notation and

terminology used in this course;
2. Describe the fundamental principles arising from the mathematical ideas

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

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

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

obtaining the derivatives for various functions.
Topic 8 discusses the process of deriving higher levels of differentiation and the
function of total cost, total revenue and total profit in order to arrive at the
minimum cost as well as maximum revenue and profit.
Topic 9 introduces integration as a reverse process of differentiation. Further

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

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

xii  COURSE GUIDE
TEXT ARRANGEMENT GUIDE

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

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

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

COURSE GUIDE  xiii
References: The References section is where a list of relevant and useful

textbooks, journals, articles, electronic contents or sources can be found. The list
can appear in a few locations such as in the Course Guide (at the References
section), at the end of every topic or at the back of the module. You are
encouraged to read or refer to the suggested sources to obtain the additional
information needed and to enhance your overall understanding of the course.
PRIOR KNOWLEDGE
No prior knowledge required.
ASSESSMENT METHOD
Please refer to myINSPIRE.
REFERENCES
Aufmann, R. (2005). Algebra: Beginning and intermediate. Boston, MA:
Houghton Mifflin.
Ayres, F. Jr., & Mendelson, E. (2013). Calculus. New York, NY: McGraw-Hill.
Barnett, R. A., Ziegler, M. R., & Byleen, K. E. (2002). Calculus for business,
economics, life sciences, and social sciences. Upper Saddle River, NJ:
Prentice Hall.
Hoffmann, L. D., & Bradley, G. L. (2000) Calculus for business, economics and
the social and life sciences. Boston, MA: McGraw-Hill.
Larson, R. (2004). College algebra: Graphing approach. Boston, MA: Houghton

Mifflin.
Ratti, J. S., & McWaters, M. (2008). College algebra. Boston, MA: Pearson
Addison-Wesley.

xiv  COURSE GUIDE
TAN SRI DR ABDULLAH SANUSI (TSDAS) DIGITAL

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

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

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

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

positive integers and Z- denotes a set of negative integers.
A set of real numbers, indicated by R, includes integers and all values in between,
for example, 1.22.
Rational numbers are numbers that can be written as the ratio of two integers. This
important set of numbers is defined as follows:
⎧p ⎫
Q = ⎨ : p , q ∈ Z, q ≠ 0 ⎬
⎩q ⎭
p
This set is made up of numbers that can be written as the ratio of two integers, ,
q
1 1
where q is non-zero. For example, , − , 0, 1 are rational numbers. Any integer
3 3
a
is a rational number, that is, Z ⊆ Q since a = for all integer a.
1
Real numbers that are not rational numbers are called irrational numbers. 2, π ,
sin 27o are examples of irrational numbers. Irrational numbers are those that cannot
be written as a ratio of two integers and we denote the set of irrational numbers as
Q' .
Thus, we can conclude that a set of real numbers is a set that is made up of all
rational and irrational numbers, in other words, R = Q ∪ Q' . It is easy to see that
N ⊆ Z ⊆ Q ⊆ R.

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

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

an , an −1 , ..., a1 , a0 are coefficients of the polynomial and when an ≠ 0, the
polynomial an x n + an −1 x n −1 + ... + a1 x + a0 is called a polynomial of degree n. Each
of the monomials in a polynomial is called a term of the polynomial.
Hence, a polynomial is an algebraic sum of monomials in which no variables appear

as denominators and all variables that do appear are raised only to positive-integer
powers.

Often a polynomial is written in its standard form, with the highest degree non-zero
term listed as the first, followed by the rest of the terms in a descending order of
their degrees. The highest power in the polynomial is known as the degree of the
polynomial.
Table 1.1 shows a number of polynomials and some of the important properties of
each of the polynomials.
Table 1.1: Properties of Some Polynomials

Coefficient of Each of the Monomials
Polynomial Degree
x3 x2 x1 x0
2 x3 + 3x + 8 ≡ 2 x3 + 0 x 2 + 3 x + 8 2 0 3 8 3
−2 x 2 + 11 ≡ 0 x3 + (−2) x3 + 0 x + 11 0 –2 0 11 2
π x − 6 ≡ 0 x3 + 0 x 2 + π x + (−6) 0 0 π –6 1
4 ≡ 4.1 ≡ 4x0 0 0 0 4 0
Note: Until now, we have only used x to represent variables in equations and
polynomials. In reality, we can use any other letters of the alphabet. Other letters
that are often used are y and z. All the polynomials in Table 1.1 are stated in terms
of x.
For example, 7y3 – 3y + 4 is a polynomial of degree 3 with y as the variable.
And, 9z4 + 2z3 – 10, is a polynomial of degree 4 with the variable z.
Note: The polynomial of degree 0 (or degree zero) is called a constant. Polynomial
of the degree 1 is called linear. A complete list of polynomials of degree 2 to 10 and
degree 100 is shown in Table 1.2.

Table 1.2: Classifications of Polynomials by Degrees

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

The addition and subtraction of polynomials are performed by combining
monomials of the same degree. That is, grouping monomials of the same
degree and combining them.
Example 1.2
(4 x 2 + 7 x − 3) + ( x 3 − 6 x 2 + x + 5) = x 3 + (4 x 2 − 6 x 2 ) + (7 x + x ) + (−3 + 5)
= x 3 + (4 − 6) x 2 + (7 + 1) x + ( −3 + 5)
= x3 − 2 x 2 + 8 x + 2
Example 1.3
In this example, we find the difference between two polynomials. The first
step is to open up the brackets. When opening up the brackets, make sure the
signs of each of the terms of the second polynomial in brackets are changed
accordingly in view of the negative sign before the bracket.

(3 x 4 + 4 x 3 − 3 x 2 + x + 1) − ( x 4 + 3 x 3 − x 2 + 5 x − 9)
Signs changed
= 3 x 4 + 4 x3 − 3x 2 + x + 1 − x 4 − 3x3 + x 2 − 5 x + 9
= (3 − 1) x 4 + (4 − 3) x 3 + (−3 + 1) x 2 + (1 − 5) x + 1 + 9 Grouping like terms
= 2 x 4 + x 3 − 2 x 2 − 4 x + 10
(b) Multiplication of Polynomials

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

There are several products of polynomials that are often used in algebra.
Among them are:
( x − a )( x + a) = x 2 − a 2
( x + a ) 2 = x 2 + 2ax + a 2
( x − a ) 2 = x 2 − 2ax + a 2
( x + a )( x + b) = x 2 + (a + b) x + ab
for any real numbers of x, a and b.
(d) Equations, Identities, Inequalities and Functions

Now, let us consider the following algebraic expressions:
(i) ( x + 1) 2 = x + 7
(ii) ( x + 1)2 = x 2 + 2 x + 1
(iii) ( x − 2) > 1
(iv) ( x + 1) 2

It is obvious that there are dissimilarities among the four expressions. Let us
discuss each of them in more detail:
(i) ( x + 1) 2 = x + 7
When we replace x with 1 on the left hand side (LHS) of the equation
and then on the right hand side (RHS) separately, we get
LHS = (1 + 1)2 = 22 = 4
RHS = 1 + 7= 8
Therefore, LHS ≠ RHS.
Observe what happens if we replace x with 2:

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

x2 + 2x + 1 = x + 7
⇒ x2 + x – 6 = 0
Therefore, (x + 3)(x – 2) = 0
It is obvious that LHS = RHS only when

x + 3 = 0 i.e. x = −3
or x – 2 = 0 i.e. x = 2
Therefore, (x + 1)2 = x + 7 is only true when x = −3 or x = 2. This equation

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

true for several values of the unknown.
The process of obtaining the values for the unknown is called solving
the equation.

(ii) (x + 1)2 = x2 + 2x + 1
When we replace x with 4, we see that

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

LHS = (−2 + 1)2 = (−1)2 = 1
RHS = (−2)2 + (2)(−2) + 1 = 1
Therefore, LHS = RHS when x = −2.
In fact, LHS = RHS for all values of x. This is clearly shown in Figure 1.1
for squares with sides equal to x + 1.
Figure 1.1
Both of the rectangles shown in Figure 1.1 are identical and hence their
areas are also identical. Therefore ( x + 1) 2 = x 2 + 2 x + 1 for all values of
x and (x + 1)2 is said to be identical with x2 + 2x + 1.
Such a relation is called an identity when both sides of the equations

are the same for any values of the unknown.

In such cases, the symbol ≡ is used to represent identities. For example,

identity (ii) can be written as:
( x + 1)2 ≡ x 2 + 2 x + 1
Note that not all equations are identities.
(iii) (x – 2) > 1
Such an expression is to be read as “x minus two is greater than one”.

The symbol > means “is greater than” and the symbol < means “is less
than”. It is clear that this expression is different from expressions (i) and
(ii) and it is called an inequality.
(x − 2) will take values greater than 1 when x takes values greater

than 3. In other words, if
(x – 2) > 1
then
x>3
The solution is a half-open interval such that all points in the interval
satisfy the condition (x – 2) > 1; that is, there is an infinite set of values
of x that satisfies inequality (iii).
3 x
The solution to an inequality is an interval or several intervals of values

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

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

1.3 FACTORING POLYNOMIALS

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

expressions such that the product of these expressions produces the original
quadratic expression. Let us look at several examples as follows:
Example 1.5
Factorise the following:

(a) x2 + 5x
(b) 3x2 + 9
(c) 4x2 – 9
Solution
Factorise the common factor, i.e. x
(a) x2 + 5x = x(x + 5)
Factorise the common factor, i.e. 3
(b) 3x2 + 9 = 3(x2 + 3)
Change to square numbers.
(c) 4x2 – 9 = (2x)2 – (3)2

= (2x – 3) (2x + 3)

Example 1.6
(a) Factorise x2 + 4 x − 5
Solution
x 2 + 4 x − 5 = ( x + p)( x + q) = x 2 + px + qx + pq = x 2 + ( p + q) x + pq.
Equate the coefficients of x and the constant in order to obtain

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

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

Example 1.7
(a) Factorise 3x2 + 4 x − 4
Solution
3x 2 + 4 x − 4 = (mx + p)(nx + q) = mnx 2 + (mq + np) x + pq.

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

mn = 2, mq + np = 7 and pq = 3.
m n p q mq + np Check:
2 1 3 1 2+3=5 2x 1
1 3 6+1=7 x 3
2x2 + 7x + 3

There are two possibilities to obtain pq = 3. Choose mq + np = 7.
Then m = 2, n =1, p = 1, q = 3. Therefore, 2 x 2 + 7 x + 3 = (2 x + 1)( x + 3).
Example 1.8
(a) Factorise 3x2 + 12 x + 12

Solution
Step 1
Factorise 3 since 3 is the common factor.
3x 2 + 12 x + 12 = 3( x 2 + 4 x + 4)
Step 2
Factorise the RHS and simplify.
= 3( x + 2)(x + 2)
(b) Factorise p2 + 2mp + 2p + 4m

Solution
p2 + 2mp + 2p + 4m
Step 1
Factorise the common factor for the first two terms.
p2 + 2mp + 2p + 4m = p (p + 2m) + 2p + 4m
Step 2
Factorise the common factor for the last two terms.

p2 + 2mp + 2p + 4m = p (p + 2m) + 2 (p + 2m)
Step 3
Factorise the common factor (p + 2m).
p2 + 2mp + 2p + 4m = (p + 2) (p + 2m)
1.4 PARTIAL FRACTIONS

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

f ( x) can be written as a single fraction with a common denominator as shown here:
3 x 3( x 2 + 1) + x( x + 2) 4x2 + 2x + 3
f ( x) ≡ + ≡ ≡
x + 2 x2 + 1 ( x + 2)( x 2 + 1) ( x + 2)( x 2 + 1)
Sometimes we need to reverse the operation, that is, we need to write the polynomial
ratio as a summation of two or more polynomial ratios. The reverse process of
4 x2 + 2 x + 3
„taking the fraction apart‰ into the sum of simpler fractions is shown
( x + 2)( x 2 + 1)
below:
4 x2 + 2 x + 3 3 x
2
= + 2 ,
( x + 2)( x + 1) x + 2 x + 1
is called “decomposing the fraction into the partial fractions”.
1.4.1 The Cover-up Rule

When the original fraction is a proper fraction, then the resulting partial fraction is
also a proper fraction.
x+2
In other words, a fraction such as can be written as
( x − 3)( x − 2)
A B
+ ,
x−3 x−2
x+2
and can be written as
( x − 3)( x 2 + 4)
A Bx + C
+ 2 ,
x − 3 ( x + 4)
where A, B and C are constants that need to be determined.
The method to find these constants depends on the factor of the denominator of the
polynomials involved.

Example 1.9
x+2
Express in partial fractions.
( x − 3)( x − 2)
Solution
In this example, we have proper fractions with linear factors (where the polynomials
are of the first order). Therefore, the partial fractions are also proper fractions.
Observe that the numerators of the partial fractions are made up of constants only
because the denominators are linear polynomials.
x+2 A B
≡ +
( x − 3)( x − 2) x − 3 x − 2
or
x+2 A( x − 2) + B ( x − 3)
≡
( x − 3)( x − 2) ( x − 3)( x − 2)
It is obvious that the denominators of both sides of this identity are identical. Hence,
the numerator of this identity must also be identical,
i.e. x + 2 ≡ A(x − 2) + B(x − 3)
This identity is true for any value of x.
If we choose x = 2 (to eliminate A), we have
2 + 2 = A(0) + B (2 − 3)
or
B = −4
Now, let us choose x = 3 (to eliminate B this time), we have
3 + 2 = A(3 − 2) + B (0)
or
A = 5
Now replace the values into the constants A and B. The result is the original proper
fraction which can be written as the following partial fractions:
x+2 5 4
≡ −
( x − 3)( x − 2) x − 3 x − 2

Example 1.10
2
Express as partial fractions.
( x − 1)( x 2 + 1)
Solution
Observe that the denominator in this example has a quadratic factor or a polynomial
of degree 2. When such a factor exists, the resulting partial fractions can be a degree
1 polynomial (i.e. one degree lesser than the degree of the denominator in the
polynomial). Hence we need to find the constants A, B, and C such that
2 A Bx + C
2
≡ + 2
( x − 1)( x + 1) ( x − 1) ( x + 1)
or
2 A( x 2 + 1) + ( Bx + C )( x − 1)
≡
( x − 1)( x 2 + 1) ( x − 1)( x 2 + 1)
In other words,
2 ≡ A( x 2 + 1) + ( Bx + C )( x − 1) ............ (*)
Setting x = 1 (to eliminate B and C) in equation (*) gives us
2 = A(12 + 1)
or
A=1
We will not have any value for x that will eliminate A (because no real value of x
can satisfy x2 + 1 = 0).
A simple choice that will eliminate B is x = 0. Substituting this value in equation (*),
we get
2 = A(1) + C (–1)

Substituting A with 1 (the value obtained earlier) we have
2 = 1(1) − C
or
C = −1
To find the value of the constant B, we can substitute any other value for x (best to
choose a small value for x in order to simplify the calculation). Let us say we choose
x = −1, we have
2 = A((–1)2 + 1) + (B(–1) + C)(–1 – 1)
or
2 = 2A + 2B − 2C
Since we have already determined that A = 1 and C = −1, then B = −1
Therefore,
2 1 x +1
2
≡ − 2
( x − 1)( x + 1) ( x − 1) ( x + 1)
1.4.2 The Combine Method

The method that we have used so far to determine the constants in a partial fraction
is called the cover-up rule.
Another method is by expanding the right-hand side of equation (*) which produces
2 ≡ Ax2 + A + Bx2 − Bx + Cx − C
or
2 ≡ ( A + B) x 2 + (− B + C ) x + ( A − C )

This is an identity and hence the coefficients of x2, x and the constants in both sides
of the identity must be identical. By comparing the coefficients for each of them,
we have
x2 : 0=A+B
x : 0 = −B + C
0
x (or 1) : 2=A−C
The values for A, B and C can be found by solving the three equations.
Example 1.11
x
( x − 1)( x − 2) 2
Solution
Observe that in this case the second factor of the denominator is a repeated factor
as ( x − 2) 2 ≡ ( x − 2)( x − 2).
Generally, any repeated factor of the form (ax + b)2 in the denominator will give
A B
rise to two partial fractions of the form and .
(ax + b) ( ax + b) 2
Hence,
x A B C
2
≡ + + .
( x − 1)( x − 2) ( x − 1) ( x − 2) ( x − 2) 2
In other words,
x ≡ A( x − 2)2 + B( x − 1)( x − 2) + C ( x − 1)
This is valid for all values of x.
Let us choose x = 2 (to eliminate A and B) and we will get
2 = A(0)2 + B (1)(0) + C (2 − 1)
or
C=2

Now let x = 1 (to eliminate B and C ) and we will have get
1 = A(1 – 2)2 + B (0)(1 – 2) + C (0)
or
A=1
Finally, let us say we choose x = 3. We will get
3 = A(3 – 2)2 + B (3 – 1)(3 – 2) + C (3 – 1)
or
3 = A + 2B + 2C
Substituting A = 1 and C = 2 obtained earlier will give us
3 = 1 + 2B + 4
or
B = −1
Therefore,
x 1 1 2
2
≡ − +
( x − 1)( x − 2) ( x − 1) ( x − 2) ( x − 2) 2
Note:
Using a similar technique, a repeated factor (ax + b)3 in the denominator will give
A B C
three partial fractions of the form , 2
and .
( ax + b) ( ax + b) ( ax + b)3

1.4.3 Improper Fractions

Example 1.12
x3 + 3
( x + 1)( x − 1)
Solution
Observe that in this case, we have an improper fraction since the degree of the
numerator in the polynomial is greater than the degree of the denominator in the
polynomial. For such cases, we need to divide the numerator by the denominator in
order to obtain a polynomial plus a proper fraction.
x
2 3
x −1 x + 3
x3 − x
x+3 ← Remainder
The division stops at that level because the remainder is a degree 1 polynomial (and is
less than the degree of the divisor). Hence, the original expression can be written as
x3 + 3 x+3
≡ x+
( x + 1)( x − 1) ( x + 1)( x − 1)
A B
≡ x+ +
( x + 1) ( x − 1)
x( x + 1)( x − 1) + A( x − 1) + B ( x + 1)
≡
( x + 1)( x − 1)
Therefore,
x3 + 3 ≡ x( x + 1)( x − 1) + A( x − 1) + B( x + 1)
Substituting x = 1 gives 4 = 2B or B = 2
Substituting x = −1 gives 2 = −2A or A = −1

Thus,
x3 + 3 1 2
≡ x− +
( x + 1)( x − 1) ( x + 1) ( x − 1)
EXERCISE 1.1
1. Write the following expressions as partial fractions:

x −1
(a)
( x + 2)( x − 2)
x+3
(b)
x( x + 1)
x2
(c)
( x − 1)( x + 1)
2. Determine the values of the constants A, B and C in the following
identity:
3x A B C
≡ + +
( x − 1)( x − 2)( x − 3) ( x − 1) ( x − 2) ( x − 3)
x−3
3. Assume that f ( x ) = . Express f ( x) as partial
( x + 4)( x 2 − 2)
fractions.

• Polynomials
(i) Monomial is an algebraic expression of the form
axk
where a is a constant, x is an unknown (or a variable) and k ≥ 0 is an

integer.
(ii) Polynomial is an algebraic expression of the form
an x n + an −1 x n −1 +  + a1 x + a0
where an , an −1 , , a1 , a0 are constants, n ≥ 0 and x is a variable.
The constants an , an −1 , , a1 , a0 are known as the coefficients of the

polynomial and when an ≠ 0, the polynomial an x n + an −1 x n −1 +  +
a1 x + a0 is called a polynomial of degree n.
• Factorisation
The process of writing an expression as a product of two or more factors is called
factorisation.
Important formulas:
a2 + 2ab + b2 = (a + b)(a + b) = (a + b)2

a2 − 2ab + b2 = (a − b)(a − b) = (a − b)2
a2 − b2 = (a + b)(a − b)

Denominator Monomial
Equation Numerator
Factorisation Partial fractions
Functions Polynomial
Identity Real numbers
Inequalities
1. Write the quadratic equation with the following roots:
(a) 3 (repeating)
(b) j and k.
x +1
2. State the expression as partial fractions.
x ( x + 5)
x+3
3. Obtain the partial fractions of .
( x − 2) x
4. Solve 2 x 2 + x − 6 = 0 without using the quadratic formula.

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

Mifflin.
Addison-Wesley.

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

TOPIC 2 LINEAR AND QUADRATIC FUNCTIONS  27
2.1 LINEAR EQUATIONS AND GRAPH

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

A linear equation is an equation where the highest power of x is equal to 1.
General form: y = mx + c, where m is the slope and c is the y-intercept.
Example 2.1
Obtain the slope and the y-intercept for each of the linear equations below:
(a) y = 6 – 3x (b) 2y + 6x = 9
Solution
Express the following equations in the general form, i.e. y = mx + c. Then, calculate
the value for m (scalar for x) and the y-intercept, i.e. the value of c.
(a) y = 6 – 3x
y = –3x + 6 (General form)
Therefore, m = –3 and c = 6
(b) 2y + 6x = 9
2y = – 6x + 9
9
y − = −3x + (General form)
2
9
Therefore, m = –3 and c =
2
28  TOPIC 2 LINEAR AND QUADRATIC FUNCTIONS
2.1.2 Slope
If two points A(x1, y1) and B (x2, y2) are given, a slope can be derived by using the
formula below:
y2 − y1
m=
x2 − x1
Example 2.2
Find the slope for each line that connects the two given points:
(a) A (1, 4) and B (–2, 5)
(b) C (0, –3) and D (7, –1)
(c) E (–6, 6) and F (1, 6)
Solution
(a) 5−4
m=
−2 − 1
1
=
−3
(b) −1 − ( −3)
m=
7−0
−1 + 3
=
7
2
=
7
(c) 6−6
m=
1 − ( −6)
0
=
7
=0

ACTIVITY 2.1
Why is it necessary to discuss the slope of a line? What is the
significance of a slope? Discuss your findings during your tutorial.
2.1.3 Types of Straight Lines

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

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

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

(c) Ascending-Slant Line

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

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

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

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

Example 2.3
Sketch the graph for each of the following linear functions:
(a) y = 2x −1
(b) y = − 4x
Solution
(a) y = 2x − 1
(i) The first point: Find the y-intercept
Let x = 0, y = 2(0) − 1
y = −1
Hence, the first point is (0, −1).
(ii) The second point: Find the x-intercept
Let y = 0, 2x – 1 = 0
2x = 1
1
x =
2
1
Hence, the second point is ( , 0).
2
Figure 2.5 illustrate the graph of y = 2x – 1.
Figure 2.5

(b) y = − 4x
(i) The first point: Find the y-intercept

Let x = 0, y = − 4(0)
y=0
Hence, the first point is (0,0).
(c) The second point: Find any other point besides the x-intercept (as it is the
same as the y-intercept)
Let x = 2, y = − 4(2)
y = −8
Hence, the second point is (2, −8).
Figure 2.6 show us the graph of y = –4x.
Figure 2.6
2.2 PARALLEL AND PERPENDICULAR LINES

Parallel lines are two lines that are always the same distance apart, lying on the
same plane, having the same slope and never intersecting each other. Figure 2.7
shows the two lines, L1 and L2 are parallel.
Two lines are said to be parallel if and only if they have the same slope.

Figure 2.7: Parallel lines
Example 2.4
Is line 2y – 3x + 6 = 0 parallel to another line 4y = 6x + 3 ?
Solution
Find the slope for each line:
4 y = 6x + 3
2 y − 3x + 6 = 0
6 3
2 y = 3x − 6 y= x+
4 4
3x
y = −3 3 3
2 y= x+
2 4
3
∴ m1 = 3
2 ∴ m2 =
2
Since they have the same slope, these two lines are parallel.
Example 2.5
Find an equation of a straight line that passes through the point (–2, 10) and parallel
to another straight line 5x – y = 0.
Solution
Determine the slope for line 5x – y = 0
5x − y = 0
− y = −5 x
y = 5x
∴ m=5
The equation of a straight line is y = mx + c (The slope for this equation is also 5
since the slope of the two lines are the same).
Now, substitute m = 5 into equation y = mx + c, i.e. y = 5x + c
Since this line passes through point (–2, 10), substitute x = –2 and y = 10 into
y = 5x + c and you will get:
10 = –10 – c
10 + 10 = c
∴ c = 20
The equation of a straight line that we are looking for is y = 5x + 20
Now we know when two lines are said to be parallel. But how about perpendicular
lines? Let us find out.
Perpendicular lines are two or more lines that are intersect at a 90 degree angle, like
the two lines shown in Figure 2.8.
Two lines are said to be perpendicular if and only if the product of the two slopes
is –1.
Figure 2.8: Perpendicular lines

Example 2.6
Determine whether the straight line y – 2x = 1 is perpendicular to 2y + x = 2.
Solution
Calculate the slope for each line and multiply them.
y − 2x = 1 2y + x = 2
y = 2x + 1 2 y = −x + 2
∴ m1 = 2 −x
y= +1
2
−1
∴ m2 =
2
Since the multiplication of the two slopes is equal to –1, therefore, the two lines are
perpendicular to each other.
Example 2.7
Find an equation of a straight line that passes through point (1, 2) and perpendicular
to a straight line x + 5y = 2.
Solution
Determine the slope for line x + 5y = 2
x + 5y = 2
5y = −x + 2
−x 2
y= +
5 5
−1
∴ m1 =
5
Find the slope of the required line, which is m2 .
⎛ 1⎞ (The multiplication of the two slopes is –1 since the two lines

⎜⎝ − ⎟⎠ ( m2 ) = −1
5 are perpendicular.)
m2 = 5

Now, substitute m = 5 into equation y = mx + c, i.e. y = 5x + c
This line passes through point (1, 2). So, we substitute x = 1 and y = 2 into y = 5x + c
2 = 5(1) + c
2 =5+c
2–5 =c
–3 =c
Therefore, the equation of the straight line that we are looking for is y = 5x – 3
ACTIVITY 2.2
If the product of two slopes is equal to 1, are the lines perpendicular?

Explain.
EXERCISE 2.1
1. For each of the following equations, determine the slope and

y-intercept:
x
(a) y= −1 (b) y = –5 – 5x
2
(c) y = –3x (d) 3y = 5 – 2x
2. Find the equation of a straight line with slope –1 that passes

through the point (3, 2).
3. Given two points A (2, 4) and B (5, 12), determine the equation of
a straight line that passes through them.
4. Find an equation of a straight line that passes through the point

(2, 1) and is parallel to line 2y + x = 5
5. Obtain an equation for a straight line that passes through the point
(3, –2) and is perpendicular to line 3x – y + 3 = 0

EXERCISE 2.2
Sketch a graph for each of the linear functions below:
−x
(a) y = 3x + 2 (b) y=
2
(c) 3y + 2x = 2
2.3 QUADRATIC EQUATIONS AND GRAPH

SKETCHING
The general form of a quadratic equation is y = ax2 + bx + c where a, b and c are
real numbers and a ≠ 0. The highest degree for x in a quadratic equation is 2.
The graph of a quadratic function is a parabola. The direction in which the parabola
opens depends on the value of a. If a is positive, then the parabola opens upward
and the function has a minimum value. Take a look at Figure 2.9.
Figure 2.9: Positive quadratic function graph

On the other hand, if a is negative, the parabola opens downward and the function
has a maximum value as shown in Figure 2.10.
Figure 2.10: Negative quadratic function graph
The following are steps for sketching graph for the quadratic function
f(x) = ax 2 + bx + c :
(a) Determine the direction in which the parabola opens by observing the value
of a.
(b) Find the vertex (x, y) using this formula:
−b 4ac − b 2
x= , y=
2a 4a
(c) Find the y-intercept at which x = 0

Substitute x = 0 into the quadratic function.
f ( x) = ax 2 + bx + c
f (0) = a(0)2 + b(0) + c
f (0) = c
Hence, (0, c) is the y-intercept.

(d) Find the x-intercept (if it exists).
The graph crosses the x-axis when y = 0, i.e. when ax2 + bx + c = 0
This equation can be solved by factoring or using the following quadratic

formula:
−b ± b 2 − 4ac
Quadratic Formula: x =
2a
Whether the graph crosses the x-axis or not depends on the value of b 2 − 4ac.
(i) When b 2 − 4ac > 0, the graph crosses the x-axis at two points;
(ii) When b 2 − 4ac = 0, the graph crosses the x-axis at only one point; and
(iii) When b 2 − 4ac < 0, the graph does not cross the x-axis.
(e) Plot all the predetermined points from steps (a) to (d). Draw a smooth curve
as it passes through the various points.
Example 2.8
Sketch the graph for each of the following quadratic functions:
(i) f ( x) = x 2 – 4 x
(ii) f ( x) = 3 – 2 x – x 2
(iii) f ( x) = 2 x 2 + 2 x + 1
Solution
(i) Determine the values of a, b and c from the function.

f ( x) = x 2 – 4 x , where a = 1, b = −4, c = 0
• The value of a is positive, hence the parabola opens upward.

• The vertex (x, y)

−b 4ac − b 2
x= , y=
2a 4a
2
− ( −4 ) 4 (1)( 0) − ( −4)
= , =
2 (1) 4 (1)
4 0 − 16
= , =
2 4
=2 , = −4
Therefore, the vertex is (2, −4).
• The y-intercept is the value of c.
c=0
Therefore, the y-intercept is (0, 0).
• The x-intercept is when f (x) = 0
x (x – 4) = 0
Based on the factored method,
x (x – 4) = 0
x = 0, x = 4
or
The quadratic formula:
−b ± b 2 − 4ac
x=
2a
b − 4ac = ( −4) − ( 4)(1)( 0)
2 2
= 16 − 0
= 16

− ( −4) ± 16
x=
2 (1)
4±4
x=
2
4+4 4−4
x= , x=
0 2
x = 4, x = 0
• Thus, there are two x-intercepts, i.e. (0, 0) and (4, 0).
Therefore, Figure 2.11 is the graph of f (x) = x2 − 4:
Figure 2.11
(ii) f(x)=3 − 2x − x2, where a = –1, b = –2, c = 3
• The value of a is negative, thus the parabola opens downward.

−b 4ac − b 2
x= , y=
2a 4a
− ( −2) 4 ( −1)(3) − ( −2)
2
x= , y=
2 ( −1) 4 ( −1)
2 −12 − 4
x= , y=
−2 −4
−16
x = −1 , y=
−4
y=4
Hence, the vertex is (–1, 4).
• The y-intercept is the value of c.
c=3
• The x-intercept is when f (x) = 0.
3 – 2x – x 2 = 0
Based on the factored method,

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

(iii) f (x) = 2x 2 + 2x + 1, where a = 2, b = 2, c = 1
• The value of a is positive, thus the parabola opens upward.

−b ⎛ −b ⎞
x= , y= f ⎜ ⎟
2a ⎝ 2a ⎠
−2 1
x= , Substitute x = − into the function
2 ( 2) 2
−2 ⎛ 1⎞
x= y = f ⎜− ⎟
4 ⎝ 2⎠
2
1 ⎛ 1⎞ ⎛ 1⎞
x=− , y = 2⎜ − ⎟ + 2⎜ − ⎟ +1
2 ⎝ 2⎠ ⎝ 2⎠
⎛ 1⎞
y = 2⎜ ⎟ −1+1
⎝ 4⎠
1
y=
2
⎛ 1 1⎞
• Hence, the vertex is ⎜ − , ⎟
⎝ 2 2⎠
The y-intercept is the value of c.
c=1
• Therefore, the y-intercept is (0, 1)
The x-intercept is when f (x) = 0
2 x2 + 2 x + 1 = 0

Use the quadratic formula method.
−b ± b 2 − 4ac
x=
2a
b − 4ac = 2 − 4 ( 2)(1)
2 2
= 4−8
= −4
b2– 4ac < 0 This means, the graph has no x-intercept.
• Therefore the graph of f (x) = 2x2 + 2x + 1 is illustrated in

Figure 2.13:
Figure 2.13
ACTIVITY 2.3
Why do you think that the quadratic equation has the shape of a
parabola? Share your answer in myINSPIRE.

EXERCISE 2.3
Sketch a graph for each of the following quadratic functions:
(a) f(x) = x2 – 6x + 5
(b) f(x) = x2 + 4
(c) f(x) = – x2 – 2x – 3
(d) f(x) = x2 – 16
(e) f(x) = (x – 1)(3 – x)
2.4 INTERSECTION POINT

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

Example 2.10
Find the intersection point for the lines 2x + 4y = 6 and 6x + 3y = 18
Solution
Equate the scalar of x in both equations by multiplying each term in equation

2x + 4y = 6 by 3.
Thus, we have 6x + 12y = 18
Then subtract this equation from the other to eliminate the variable x.
6x + 12y = 18
(−) 6x + 3y = 18
9y = 0
y = 0
Substituting y = 0 into equation 2x + 4y = 6
2x + 4(0) = 6
2x = 6
x =3
Hence, the point of intersection is (3, 0).
Example 2.11
Find the intersection point for the curves y = 4 x – x 2 and y = x 2 – 6.
Solution
Solve the equations y = 4 x – x 2 and y = x 2 – 6.
4x − x2 = x2 −6
4x − x2 − x2 + 6 =0
4x − 2x2 + 6 =0 (Divide each term by 2)
2x − x2 + 6 =0

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

Insert x = 3 and x = –1 into y = –2x
When x = 3, y = –2(3)
y = –6
When x = –1, y = –2(–1)

y=2
Thus, the intersection points are (3, –6) and (–1, 2).
Further discussions on functions can be found in the following website:
http://mathworld.wolfram.com/Function.html
ACTIVITY 2.4
When two graphs cross each other, what can we say about their respective
values of x and y at the intersection point?
EXERCISE 2.4
Find the intersection points for each of the following equations:
(a) 2x + y = 10 and 6x + y = 14
(b) 3x + y – 2 = 0 and 3x – 4y + 8 = 0
(c) 2x – 3y = 7 and 3x + 2y = 4
(d) y = 8 – x2 and 4x – y + 11 = 0
(e) y = 2x2 – 3x and y = x2 – 2
(f) y = x2 + 6x + 2 and y = 2x2 + 2x + 5

MULTIPLE-CHOICE QUESTONS
2.1QUESTIONS
1. Form the linear equation for a line that passes through point
(3, − 1) and having slope –7.
A. y = −7 x + 21 B. y = 7 x − 22
C. y = −7 x + 20 D. y = 3x + 7
2. Which pair of lines are parallel?
A. L1 : 2 y = −3x + 13 , L2 : 3 y = 2 x − 3
B. L1 : 2 x + 2 y = 1 , L2 : y + x = 9
C. L1 : y = −3x − 7 , L2 : y = 3x − 7
D. L1 : 3x − y + 7 = 0 , L2 : x + y + 1 = 0
3. Determine the graph that represents a line having slope –3.

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

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

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

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

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

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

Mifflin.
Addison-Wesley.

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

TOPIC 3 APPLICATION OF LINEAR AND QUADRATIC FUNCTIONS  53
3.1 DEMAND AND SUPPLY FUNCTIONS

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

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

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

Solution:
Determine the slope for each equation.
(a) p + 2q = 100
p = – 2q + 100
The slope is –2 (negative).
Thus, the equation p + 2q = 100 is a demand equation.
(b) 3 p = q + 125
q 125
p= +
3 3
1
The slope is (positive).
3
Thus, the equation 3p = q + 125 is a supply equation.
Solve both equations to obtain the market equilibrium point.
p + 2q = 100 (multiply each term by 3)

3p + 6q = 300
(–) 3p – q = 125 (subtract this equation from the other to eliminate p)
7q = 175
q = 25
Insert q = 25 into equation p + 2q = 100
p + 2(25)= 100
p + 50 = 100
p = 50
∴ The market equilibrium point is (25, 50).

Example 3.2
Given a demand function, qd = p2 − 100p + 2500 and a supply function

qs = 0.5p2 – 50.
(a) Determine the price at market equilibrium point if the price domain is
5 ≤ p ≤ 50.
(b) Find the quantity for such price.
Solution:
(a) Equate the demand and supply functions to find the value for p.
p 2 – 100p + 2500 = 0.5p 2 – 50

p 2 – 0.5p 2 – 100p + 2500 + 50 = 0
0.5p 2 – 100p + 2550 = 0
a = 0.5, b = –100, c = 2550
−b ± b 2 − 4ac
p=
2a
b – 4ac = (–100)2 – 4(0.5)(2550)
2
= 10000 – 5100
= 4900
− ( −100) ± 4900
p=
2 ( 0.5)
100 ± 70
p=
1
p = 100 + 70 , p = 100 − 70
p = 170 , p = 30
p = 170 does not lie in the given price domain, hence it is not the solution.
Therefore, the price at the market equilibrium point is RM30.

(b) Substitute p = 30 into the supply function.
q = 0.5p2 − 50
= 0.5(30)2 − 50
= 0.5 (900) − 50
= 450 − 50
= 400
The corresponding supply quantity is 400 units.
ACTIVITY 3.1
If you are an entrepreneur, would you be satisfied if the equilibrium
point is met? Elaborate your reason(s).
EXERCISE 3.1
1. Find the equilibrium point if the supply and demand equations of a

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

is p2 − 40p + 2600. Determine the price and quantity at which the
market reaches its equilibrium point.

3.2 COST AND REVENUE FUNCTIONS

Fixed costs are costs that are independent of the production level such as insurance
cost.
Total Cost = Fixed Costs + Variable Costs
Total revenue is the money received from the products sold.
Total Revenue = (Unit Price) × (Total Quantity Sold)
Profit is the difference between total revenue and total cost.
Profit = Total Revenue − Total Cost
Example 3.3
A factory produces a certain type of product worth RM200. The costs of its raw
material and labour are RM30 and RM15 per unit, respectively. Fixed costs are
RM100,000.
(a) Obtain the function for profit.
(b) Find the profit if 10,000 units are sold.
Solution:
(a) Suppose q is the quantity of products sold.

= 200q
Total Cost = Variable Costs + Fixed Costs

= 30q +15q + 100,000

Hence, Profit = Total Revenue – Total Cost

= 200q – (30q +15q + 100,000)
= 200q – 30q – 15q – 100,000
= 155q – 100,000
(b) Substitute q = 10,000 into 155q – 100,000

Profit = 155(10,000) – 100,000
= 1,550,000 – 100,000
= 1,450,000
Example 3.4
Assuming the cost of producing 10 units of a given product is RM40, while that of
20 units is RM70. If the cost C is linearly related to production quantity q, find:
(a) the linear equation that links C to q.
(b) the costs required to produce 35 units of the product.
Solution:
Linear equation: C = mq + k …(1)
Substitute q = 10, C = 40 and q = 20, C = 70 into equation (1) to form two equations,
i.e.
40 = 10m + k and 70 = 20m + k.
Subtract one equation from the other to eliminate k and then obtain the value for m.
70 = 20m + k
(–) 40 = 10m + k
30 = 10m
3 =m
(a) Substitute m = 3 into 40 = 10m + k to derive the value of k.
40 = 10(3) + k
40 = 30 + k
10 = k
So, the linear equation becomes C = 3q + 10

(b) Substitute q = 35 into C = 3q + 10.
C = 3q + 10
= 105 + 10
= 115
3.2.1 Break-even Point Analysis

Break-even point of a product is the level of production at which there is no profit
made or loss incurred. It is the point where total revenue equals to total cost.
Figure 3.4
TR = TC : Break-even point
TR < TC : Business suffering loss
TR > TC : Business generating profit
Example 3.5
A company is selling a product at the price of RM45 per unit. Variable costs per
unit is RM33, while fixed costs is RM450,000. How many units have to be sold to
break even?
Solution:
Break-even point: Total Revenue = Total Cost

= 45q

Total Cost = Variable Costs + Fixed Costs

= 33q + 450,000
Therefore, 45q = 33q + 450,000

45q − 33q = 450,000
12q = 450,000
q = 37,500
Hence, 37,500 units have to be sold to reach the break-even point.
SELF-CHECK 3.1
Which part of the graph in Graph 3.4 should be avoided by an
entrepreneur? Explain.
EXERCISE 3.2
1. Identify each of the following equations as a demand or supply
equation. Then, find their corresponding price and quantity at which
they break even.
(a) 2p = 100q − 600
(b) p = −50q + 600
2. A company is producing a type of product with a selling price of

RM50 per unit. To produce one unit of the product, the company
has to use raw material at a cost of RM40. The fixed costs are
RM5,000. If q represents the quantity of products sold, determine
the:
(a) revenue function;

(b) cost function;
(c) profit function; and
(d) quantity to be sold to obtain the break-even point.

3.3 MAXIMUM AND MINIMUM VALUES

The maximum value can be obtained from the turning point on the parabola which
opens downward and the minimum value can be obtained from the turning point on
the parabola which opens upward.
Example 3.6
A company learnt that the demand function for its product is p = 48 – 3q, where p
represents the unit price and q is the quantity demanded for the product.
(a) Derive the revenue function.
(b) Determine the quantity in which the revenue is maximised.
(c) What is the maximum value of the generated revenue?
Solution:
(a) Total Revenue = (Unit Price) × (Total Quantity Sold)

R = pq
R = (48 − 3q)q
R = 48q − 3q2
(b) The revenue function is a quadratic, therefore its turning point (x,y) will be
used as it provides the maximum point. The x-coordinate is the quantity in
which the revenue is maximised.
R = 48q − 3q2
where a = –3, b = 48, c = 0
Therefore:
−b
q=
2a
−48
=
2 (3)
48
=
6
=8

(c) Substitute q = 8 into the revenue function.
R = 48q − 3q2
= 48(8) – 3(64)
= 384 – 192
= 192
Thus, the maximum revenue is RM192.
Example 3.7
Given a cost function, C = q2 – 6q + 16.
(a) Determine the quantity for which the cost is minimised.
(b) What is the minimum value of the cost?
Solution:
(a) The cost function is a quadratic, therefore its turning point (x, y) will be used
as it provides the minimum point. The x-coordinate is the quantity in which
the cost is minimised.
C ( q ) = q 2 − 6q + 16 where a = 1, b = −6, c = 16
−b
q=
2a
− ( −6)
q=
2 (1)
q=3
The quantity in which the cost is minimised is 3.

(b) Substitute q = 3 into the cost function.
C (q) = q2 – 6q + 16
= 32 – 6(3) + 16
= 9 –18 + 16
= 7
Hence, the minimum cost is RM7.
ACTIVITY 3.2
Is it possible for a quadratic function to have both minimum and

maximum values? Explain your answer.
EXERCISE 3.3
Company BC has learnt that the demand function for its product is
q = 1850 – 5p, where p represents the unit price and q is the quantity
demanded for the product.
(b) Find the revenue, given that the unit price is RM5.
(c) Determine the price for which the revenue is maximised.
(d) What is the maximum value of the revenue?

MULTIPLE CHOICE QUESTIONS 3.1

1. A manufacturer sells a product at RM200 per unit. The labour cost
is RM15 per unit and the material cost is RM50 per unit. The rent of
the building is RM10,800 per month. Find the break-even quantity.
A. 5 B. 8 C. 46 D. 80
2. Given that the demand function is p 2 – 200 and the supply function
is p2 – 20p + 1,400. What is the equilibrium price?
A. RM80 B. RM100 C. RM800 D. RM6,200
For questions 3, 4 and 5 refer to the following information:
The demand equation for a certain product is given as p = 2,750 – 5q.
3. Find the total revenue function.

A. 2,750q – 5 B. 2,750p – 5pq
C. 2,750q – 5q2 D. 2,750p – 5p2
4. Determine the quantity that will maximise the total revenue.

A. 0 B. 25 C. 50 D. 275
5. What is the maximum total revenue?

A. 0 B. RM2,750 C. RM378,125 D. RM753,500
• The two applications of the intersection point discussed are determining market
equilibrium point and break-even point.
• The market equilibrium point is obtained by solving the demand and supply
equations simultaneously.
• The break-even point is obtained by solving the revenue and cost equations
simultaneously.

• In this topic, we have covered the maximum value for the revenue function as
well as the minimum value for the cost function by using the turning point
method.
Break-even point Minimum value

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

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

Boston, MA: Pearson Addison Wesley.

Topic  Matrices
4
LEARNING OUTCOMES
1. Explain the concept of matrix and the classification of matrices;
2. Define matrix addition, scalar multiplication and multiplication of
matrices and the properties related to these operations;
3. Calculate the determinant for square matrix using the cross
multiplication method and the cofactor expansion method;
4. Determine the inverse of an invertible matrix and use inverses to solve
the linear equation system; and
5. Apply Cramer's rule to find the solution of a two-linear equation
system.
 INTRODUCTION
Data is an important source of information. Therefore, it is necessary for the data
to be arranged in an easily understood and straightforward way. Matrix is one
method which is frequently used.
In economics, matrix is used in formulating problems and displaying data. For

example, a manufacturer who produces products D, E and F could represent the
units of labour and material involved in one week’s production of these items as
shown in the table below:

68  TOPIC 4 MATRICES
Product
D E F
Labour 10 12 16
Material 5 9 7
⎡10 12 16⎤
More simply, the data can be represented by the matrix A = ⎢ ⎥
⎣5 9 7⎦
Matrices can be categorised into several classes or types. Later on, this topic will
discuss matrix operations each with its own properties which differ from the
operations of real numbers. The application of matrix is to solve simultaneous
equation systems. Two methods will be employed to solve the simultaneous
equation system, which are the inverse matrix method and the Cramer’s rule. The
knowledge on finding the determinant of a given matrix is essential in order to apply
these methods.
Matrix is a rectangular array of numbers consisting of m horizontal rows and n

vertical columns, as shown below:
⎡ a11 a12 ... a1n ⎤

⎢ ⎥
⎢ a21 a22 ... a2 n ⎥
⎢ . . ... . ⎥
⎢ ⎥
⎢ . . ... . ⎥
⎢ ⎥
⎢ . . ... . ⎥
⎢a am 2 ... amn ⎥⎦
⎣ m1
This matrix is called an m × n (read as “m by n”) matrix or a matrix of order m × n.
For any matrices, the data has to be placed in a rectangular table form, as shown below:
⎡2 0 1⎤
⎢0 −1 3⎥⎦
⎣
The above matrix consists of two rows and three columns. Hence, the dimension,
order, size or degree of the above matrix is 2 × 3. The dimension of a matrix is the
number of rows first, followed by the number of columns. The elements or entries
of the above matrix in the first row are 2, 0 and 1. While, the elements for the second
rows are 0, –1 and 3.
TOPIC 4 MATRICES  69
Generally, a matrix is denoted by a capital letter. On the other hand, every element
of the matrix will be denoted by smaller capitals with subscripts as follows:
⎡ a11 a12 a13 ⎤

⎢ ⎥
A = ⎢ a21 a22 a23 ⎥
⎢a a32 a33 ⎥⎦
⎣ 31
Based on the matrix A above, we can conclude that A is a matrix with the dimension
of 3 × 3, where its elements or entries:
(a) a11 lies in the first row and the first column
(b) a21 lies in the second row and the first column
(c) a32 lies in the third row and the second column
The dimension of the matrix A can be written at the lower right side of the letter, in
a form of a subscript, i.e. A3×3.
In general, a matrix A with the dimension of m × n (matrix A with m rows and n

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

a matrix? Explain.

4.1 CLASSIFICATIONS/TYPES OF MATRICES

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

Row matrix or row vector is a matrix with only one row, as illustrated by the
following matrices:
(a) B1×3 = [1 0 1] (b) B1×4 = [1 3 2 −1]
4.1.2 Column Matrix (Column Vector)

A matrix with only one column is called column matrix or column vector. The
following are samples of column matrices:
⎡ 3⎤
⎡1⎤ ⎢ ⎥
2
(a) L3×1
⎢ ⎥
= ⎢ 0⎥ (b) L4×1 = ⎢⎢ ⎥⎥
⎢ 3⎥
1
⎣ ⎦
⎢ ⎥
⎢⎣ 0⎥⎦
4.1.3 Square Matrix

A matrix with equal numbers of rows and columns is called a square matrix. The
m × n matrix is square, if and only if, m = n. Examples of square matrices are as
follows:
⎡3 2 1⎤
⎡ −1 2 ⎤
(a) S 2×2 ⎢ ⎥ (b) S 3×3 = ⎢⎢ 3 1 0 ⎥⎥
⎣ − 4 0 ⎦ ⎢ 2 1 4⎥
⎣ ⎦
The elements on the main diagonal of any given square matrix are all the elements
which lie from the upper left corner to the lower right corner. The main diagonal
elements for matrix S2×2 above are −1 and 0. While, the main diagonal of matrix S3×3
are 3, 1 and 4.

4.1.4 Diagonal Matrix

If a square matrix has at least one non-zero element on its main diagonal and all the
other elements are 0’s, the matrix is known as a diagonal matrix or aij = 0 for i ≠ j.
Below are examples of such matrices:
⎡1 0 0⎤
⎡1 0⎤ ⎢ ⎥
(a) P2×2 =⎢ ⎥ (b) P3×3 = ⎢0 0 0⎥
⎣0 −1⎦ ⎢0
⎣ 0 3⎥⎦
4.1.5 Special Matrix

An Identity Matrix, denoted by I is the diagonal matrix whose main diagonal
entries are 1’s. Let us now look at examples of identity matrices:
⎡1 0 0⎤
⎡ 1 0⎤ ⎢ ⎥
(a) I 2×2 =⎢ ⎥ (b) I 3×3 = ⎢0 1 0⎥
⎣ 0 1⎦ ⎢0
⎣ 0 1 ⎥⎦
A Zero matrix or null matrix, denoted by 0 is the matrix when all the elements of a
matrix are set to 0. Examples are shown below:
⎡0 0⎤
⎢ ⎥ ⎡0 0 0⎤
(a) 03×2 = ⎢0 0⎥ (b) 02×3 = ⎢ ⎥
⎢0 ⎣ 0 0 0⎦
⎣ 0 ⎥⎦
SELF-CHECK 4.2
If there exists only one element in a matrix, can the matrix be called
a square matrix? Explain.

EXERCISE 4.1
1. Given:
⎡ 3 1⎤ ⎡ 6⎤
(a) ⎢
B = ⎢ 6 2⎥
⎥
(b) C = [−1 5 8] (c) ⎢ ⎥
D = ⎢9⎥
⎢ −1 0 ⎥ ⎢ 4⎥
⎣ ⎦ ⎣ ⎦
State the order of each matrix.
⎡a 0 0⎤
2. Find the value(s) of a, that makes ⎢⎢ 0 ⎥
0 0⎥ a diagonal matrix.
⎢0 0 0⎥⎦
⎣
⎡1 0 0⎤
3. Is the matrix ⎢ ⎥ an identity matrix? Clarify your answer.
⎣ 0 1 0⎦
4. Determine the classes for each of the matrices below:
⎡0 0 0⎤
⎢ ⎥ ⎡ 0⎤
⎢0 0 0⎥
(a) ⎢0 (b) ⎢ ⎥
⎢ 0⎥ (c) [−1 2 1 0]
0 0⎥ ⎢ 2⎥
⎢ ⎥ ⎣ ⎦
⎢⎣0 0 0⎥⎦
4.2 MATRIX OPERATIONS

In this subtopic, you will learn about the following matrix operations:
(a) Equality of matrix

(b) Transpose
(c) Matrix addition
(d) Matrix subtraction
(e) Scalar multiplication
(f) Matrix multiplication

4.2.1 Equality of Matrix

Matrices A = [aij] and B = [bij] are equal if and only if they have the same order and
aij = bij for each i and j. Thus,
⎡ 1⎤
⎢ 5 2 ⎥ ⎡ 5 0.5⎤
⎢ ⎥=⎢ 3⎥
⎥
⎢ 1⎥ 0 ⎢
⎢⎣ 0 1 2 ⎥⎦ ⎢⎣ 2 ⎥⎦
but [1 2] ≠ [1 2 0]
A matrix equation can be defined as a system of equation. For example, suppose that
⎡ 3 q q + 1⎤ ⎡ 3 q 5 ⎤
⎢ ⎥=⎢ ⎥
⎣ q − 1 2r p + 1⎦ ⎣ r 2r q − 4⎦
By equating corresponding entries, we must have
a13 = q + 1, b13 = 5. Therefore a13 = b13, then
q +1 = 5
q = 5 −1
q=4
a21 = q −1, b21 = r . Therefore b21 = a21, then
r = q −1
r = 4 −1
r =3
a 23 = p + 1, b23 = q − 4 . Therefore a 23 = b23 , then
p +1 = q − 4
p = q − 4 −1
p = q −5
p = 4 − 5 = −1

4.2.2 Transpose
Given a matrix Am×n, with elements aij, where i = 1, 2, …, m and j = 1, 2, …, n. The
transpose matrix for Am×n, which is denoted by AT n×m, is a matrix with elements aij,
where i = 1, 2, …, n and j = 1, 2, …, m. In other words, we just reverse the order of
the row and column elements of matrix Am×n so that the rows turn into columns and
columns into rows.
Example 4.1
⎡2 3 1⎤ ⎡ 2 1 0⎤
⎢ ⎥ ⎢ ⎥
(a) If A = ⎢ 1 2 0 ⎥ , then A = ⎢ 3 2 1 ⎥
T
⎢0 1 3 ⎥⎦ ⎢ 1 0 3⎥
⎣ ⎣ ⎦
⎡ 1 3⎤
⎡1 0 −1⎤ ⎢ ⎥
(b) If B = ⎢ ⎥ , then B = ⎢ 0 2 ⎥
T
⎣3 2 0⎦ ⎢ −1 0 ⎥
⎣ ⎦
T
The transpose operation has the property: ⎡⎣ AT ⎦⎤ = A .
4.2.3 Matrix Addition

Adding two or more matrices is only feasible if all the matrices are of the same
dimensions. The sum is obtained by adding the corresponding elements (i.e. the
elements that lie on the same position). The addition operation cannot be done if
the matrices have different dimensions.
Example 4.2
⎡1 0 ⎤ ⎡ −2 4 ⎤ ⎡ − 1 4 ⎤
(a) ⎢ ⎥+⎢ ⎥=⎢ ⎥
⎣2 2 ⎦ ⎣ −1 3 ⎦ ⎣ 1 5 ⎦
⎡ −2 2 0⎤ ⎡ −1 2 0⎤ ⎡ −3 4 0⎤
(b) ⎢ ⎥+⎢ ⎥=⎢ ⎥
⎣4 −1 3⎦ ⎣ 3 2 0⎦ ⎣ 7 1 3⎦

⎡ 2 3⎤ ⎡ 7 1 3⎤
(c) ⎢ ⎥+⎢ ⎥ , cannot be performed because the two matrices have
⎣ 1 5⎦ ⎣ 3 1 3⎦
different dimensions.
4.2.4 Matrix Subtraction

Two or more matrices can be deducted from another, as long as they have the same
dimension. To perform the subtraction operation, the corresponding elements that
lie on the same position of the respective matrices are subtracted from the other.
This subtraction operation also cannot be performed if the dimensions of the
matrices are different.
Example 4.3
⎡3 0 1 ⎤ ⎡ 0 −2 5 ⎤ ⎡ 3 2 − 4 ⎤
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
(a) ⎢2 1 3 ⎥ − ⎢ 1 −3 2 ⎥ = ⎢ 1 4 1 ⎥
⎢1 4 −1⎥⎦ ⎢⎣ 2 1 2 ⎥⎦ ⎢⎣ −1 3 −3 ⎥⎦
⎣
⎡2 3 ⎤ ⎡7 1 3 ⎤
(b) ⎢ ⎥−⎢ ⎥ , the subtraction cannot be carried out because the two
⎢⎣ 15 ⎥⎦ ⎢⎣ 3 1 3 ⎥⎦
matrices have different dimension.
The properties of matrix addition and matrix subtraction are:
A+ B = B + A
A− B ≠ B − A
( A + B) + C = A + ( B + C )
( A − B) − C ≠ A − ( B − C )
A+O =O + A= A
A−O ≠ O − A

4.2.5 Scalar Multiplication

Scalar multiplication is obtained by multiplying each entry of the matrix by a scalar.
Example 4.4
⎡1 0⎤
(a) If A = ⎢ ⎥
⎣2 3⎦
⎡1 0⎤ ⎡ 5(1) 5(0) ⎤ ⎡ 5 0 ⎤
5A = 5⎢ ⎥=⎢ ⎥=⎢ ⎥
⎣2 3⎦ ⎣ 5(2) 5(3) ⎦ ⎣10 15⎦
⎡3 0 1⎤
(b) If B = ⎢⎢ 2 1 3⎥
⎥
⎢1 4 −1⎥⎦
⎣
⎡3 0 1 ⎤ ⎡ −1(3) −1(0) −1(1) ⎤ ⎡ −3 0 −1⎤

⎢ ⎥ ⎢ ⎥ ⎢ ⎥
− B = ( −1) ⎢ 2 −1 5 ⎥ = ⎢ −1(2) −1(1) −1(5) ⎥ = ⎢ −2 1 −5 ⎥
⎢6 4 −7 ⎥⎦ ⎢⎣ −1(6) −1(4) −1(−7) ⎥⎦ ⎢⎣ −6 −4 7 ⎥⎦
⎣
4.2.6 Matrix Multiplication

Multiplication of two matrices is possible only if the number of columns in the first
matrix is the same as the number of the rows in the second matrix. Suppose the first
matrix is denoted by Am×n and the second matrix is Bs×t. The multiplication of
Am×n × Bs×t can be done if and only if n = s. The product of this multiplication is
another matrix (say C) with m rows and t columns. If AB exists, then
AB = Am×n × Bs×t= Cm×t

Generally, suppose
⎡b b b ⎤
⎡a a12 a13 ⎤ ⎢ 11 12 13 ⎥
AB = ⎢ 11 b b b
⎣ a21 a22 a23 ⎥⎦ ⎢ 21 22 23 ⎥
⎢⎣ b31 b32 b33 ⎥⎦
⎡ c11 c12 c13 ⎤

=⎢
⎣ c21 c22 c23 ⎥⎦
where:
c11 = a11 b11 + a12 b21 + a13 b31
c12 = a11 b12 + a12 b22 + a13 b32
c13 = a11 b13 + a12 b23 + a13 b33
c21 = a21 b11 + a22 b21 + a23 b31
c22 = a21 b12 + a22 b22 + a23 b32
c12 = a21 b13 + a22 b23 + a23 b33
Example 4.5
⎡1 −1⎤
⎢ ⎥ ⎡ 1 1⎤ ⎡ 1 0 −2 ⎤
Given A3×2 = ⎢0 2 ⎥ , B 2× 2 = ⎢ ⎥ , and C 2× 3 = ⎢ ⎥
⎢1 ⎥ ⎣ −1 0 ⎦ ⎣ 0 1 − 1⎦
⎣ 0⎦
⎡(1)(1) + (−1)( −1) (1)(1) + (−1)(0)⎤

(a) AB = A3×2 × B2×2 = ⎢⎢(0)(1) + ( 2)( −1) (0)(1) + (2)(0) ⎥⎥
⎢⎣(1)(1) + (0)( −1) (1)(1) + (0)(0) ⎥⎦
⎡ 2 1⎤
= ⎢⎢ −2 0⎥⎥
⎢⎣ 1 1⎥⎦ 3×2

(b) BA= B2×2 × A3×2 is not possible because the number of columns in matrix B2×2
is not the same as the number of rows in matrix A3×2.
⎡ (1)(1) + ( −1)(0) (1)(0) + ( −1)(1) (1)( −2) + ( −1)( −1) ⎤

(c) AC3×3 = A3×2 × C2×3 = ⎢⎢ (0)(1) + (2)(0) (0)(0) + (2)(1) (0)( −2) + (2)( −1) ⎥⎥
⎢⎣ (1)(1) + (0)(0) (1)(0) + (0)(1) (1)( −2) + (0)( −1) ⎥⎦
⎡1 − 1 − 1⎤
⎢ ⎥
= ⎢0 2 −2 ⎥
⎢1 0 −2 ⎥⎦
⎣
Properties of matrix multiplication are:
A(BC) = (AB)C
A(B + C) = AB + AC and (A + B)C = AC + BC
AB ≠ BA
AI = IA = A
There are cases where the multiplication of two matrices is the matrix itself, i.e.
A × A = A. This matrix A is known as idempotent matrix.
Example 4.6
⎡ ⎤ ⎡ ⎤⎡ ⎤ ⎡ ⎤
⎢1 0 0⎥ ⎢1 0 0 ⎥ ⎢1 0 0 ⎥ ⎢1 0 0⎥
⎢ ⎥ ⎢ ⎥⎢ ⎥ ⎢ ⎥
1 1⎥ 1 1⎥ ⎢ 1 1⎥ ⎢ 1 1⎥
Given A = ⎢ 0 , then AA = ⎢0 0 = 0 =A
⎢ 2 2⎥ ⎢ 2 2⎥ ⎢ 2 2⎥ ⎢ 2 2⎥
⎢ ⎥ ⎢ ⎥⎢ ⎥ ⎢ ⎥
⎢0 1 1⎥ ⎢0 1 1⎥ ⎢ 1 1⎥ ⎢ 1 1⎥
0 0
⎣⎢ 2 2 ⎦⎥ ⎣⎢ 2 2 ⎦⎥ ⎣⎢ 2 2 ⎦⎥ ⎣⎢ 2 2 ⎦⎥
Hence, A is an idempotent matrix.
SELF-CHECK 4.3
List several examples of idempotent matrices.

EXERCISE 4.2
1. Suppose:
⎡ 2 −1⎤ ⎡ −4 2 ⎤
⎡ −2 1 3⎤ ⎡ 4 1 −2 ⎤ ⎢ ⎥ ⎢ ⎥
A=⎢ ⎥, B = ⎢ ⎥, C = ⎢ 0 6 ⎥ and D = ⎢ 3 5 ⎥
⎣4 0 1⎦ ⎣ 5 −1 3 ⎦ ⎢ −3 2 ⎥ ⎢ −1 −3⎥
⎣ ⎦ ⎣ ⎦
Find:
(a) 3A (b) A+B (c) C−D
(d) AB (e) (2A)(5C) (f) (2A − B)D
(g) (AT)A
2. Determine matrix A that satisfies the following equation.

⎡ 1 0 ⎤ ⎡ −1 −3 ⎤
A ⎢ ⎥=⎢ ⎥
⎣ −1 3 ⎦ ⎣ 3 6 ⎦
4.3 DETERMINANT
Determinant is defined only for square matrices. The determinant of matrix A is
denoted by ⎜A⎜and has a scalar value. This subtopic will only emphasise on
obtaining the determinants for square matrices with the dimensions until 3 × 3.
Determinants are used to find the invertible matrices which are then used to
explicitly describe the solution to the linear equation system.
If A = [a11 ] is a square matrix of order 1, then A = a11.
⎡a a ⎤
Given matrix A2×2 = ⎢ 11 12 ⎥ . The determinant of a matrix can be obtained by
⎣ a21 a22 ⎦
taking the difference between the multiplication of elements on the main diagonal
(a11 and a22) and that of the opposite diagonal ( a12 and a21 ). The determinant of the
matrix A2×2 is given by:
A2×2 = ( a11 )( a22 ) − ( a12 )( a21 )

Example 4.7
⎡0 −1⎤ ⎡1 2⎤
If A = ⎢ ⎥ and B = ⎢ ⎥ , determine
⎣2 4 ⎦ ⎣0 1⎦
(a) |A| (b) |B| (c) |AB|

(d) |BA| (e) |A| |B| (f) |B| |A|
Solutions:
(a) |A| = 0(4) – (–1)(2) = 2
(b) |B| = 1(1) – 2(0) = 1
⎡ 0 −1⎤
(c) AB = ⎢ ⎥ . Therefore, ⎜AB ⎜= (0)(8) – (–1)(2) = 2
⎣2 8 ⎦
⎡ 4 7⎤
(d) BA = ⎢ ⎥ . Therefore, ⎜BA⎜= (4)(4) – (7)(2)
⎣ 2 4⎦
= 16 –14
=2
(e) | A| | B| = (2)(1) = 2
(f) | B| | A| = (1) (2) = 2
⎡ a11 a12 a13 ⎤

The determinant of matrix A3×3 = ⎢⎢ a21 a22 a23 ⎥⎥ , is obtained as follows:
⎢⎣ a31 a32 a33 ⎥⎦
For entry a11 , we delete the entries in row 1 and column 1, as shown below:
⎡ a11 a12 a13 ⎤

⎢a a22 a23 ⎥⎥
⎢ 21
⎢⎣ a31 a32 a33 ⎥⎦

⎡a a ⎤
This leaves the matrix ⎢ 22 23 ⎥ of order 2. The determinant of this matrix is called
⎣ a32 a33 ⎦
the minor of a11 .
a21 a23 a a 22
Similarly, the minor of a12 is , and for a13 is 21 .
a31 a33 a31 a32
So, the determinant of any square matrix A of order 3 is given by:
a22 a23 a a23 a a22

A = a11 − a12 21 + a13 21
a32 a33 a31 a33 a31 a32
= a11 ( a22 a33 − a23a32 ) − a12 ( a21a33 − a23a31 ) + a13 ( a21a32 − a22 a31 )
4.3.1 Minor of Element aij
The minor of element aij is the determinant of the sub-matrix left after omitting the
i th row and j th column. For instance, suppose
⎡1 4 1⎤
A = ⎢⎢ 0 2 0⎥
⎥
⎢2
⎣ −3 3 ⎥⎦
Then, the element of minor is:
1 4 1
2 0
m11 (i.e. 1) = 0 2 0= = (2)(3) – (0)( –3) = 6
−3 3
2 −3 3
1 4 1
0 0
m12 (i.e. 4) = 0 2 0= = (0)(3) – (0)(2) = 0
2 3
2 −3 3
1 4 1
0 2
m13 (i.e. 1) = 0 2 0= = (0)(3) – (2)(2) = – 4
2 −3
2 −3 3

1 4 1
4 1
m21 (i.e. 0) = 0 2 0= = (4)(3) – (1)( –3) = 15
−3 3
2 −3 3
1 4 1
1 1
m22 (i.e. 2) = 0 2 0 = = (1)(3) – (1)(2) = 1
2 3
2 −3 3
1 41
1 4
m23 (i.e. 0) = 0 20 = = (1)( –3) – (4)(2) = –11
2 −3
2 −3 3
1 4 1
4 1
m31 (i.e. 2) = 0 2 0= = (4)(0) – (1)(2) = –2
2 0
2 3 3
1 4 1
1 1
m32 (i.e. –3) = 0 2 0 = = (1)(0) – (1)(0) = 0
0 0
2 −3 3
1 4 1
1 4
m33 (i.e. ) = 0 2 0= = (1)(2) – (4)(0) = 2
0 2
2 −3 3
⎡ 6 0 −4 ⎤
The minor matrix A is Minor A = ⎢⎢ −15 ⎥
1 −11⎥
⎢ −2 0 2 ⎥⎦
⎣

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

c12 = (–1)1+2 × m12 = –1 × 0 = 0
c13 = (–1)1+3 × m13 = 1 × (– 4) = – 4
c21 = (–1)2+1 × m21 = –1 × 15 = –15
c22 = (–1)2+2 × m22 = 1 × 1 = 1
c23 = (–1)2+3 × m23 = –1 × (–11) = 11
c31 = (–1)3+1 × m31 = 1 × (–2) = –2
c32 = (–1)3+2 × m32 = –1 × 0 = 0
c33 = (–1)3+3 × m33 = 1 × 2 = 2
⎡ 6 0 − 4⎤
The cofactor matrix is cofactor A = ⎢⎢ −15 ⎥
1 11 ⎥
⎢ −2 0 2 ⎥⎦
⎣
The following steps are required to compute the determinant of a matrix using the
cofactor expansion method:
Step 1: Select one row or column to perform cofactor expansion. In general, we

choose the row or column with many zeroes. In matrix A, the second row
has many zeroes. Therefore, choose the second row of matrix A to perform
the cofactor expansion.
Step 2: Perform cofactor expansion by multiplying each element in the selected

row or column with its corresponding cofactor. Hence,

Determinant A = |A| = a21 c21 + a22 c22 + a23 c23

= 0(15) + 2(1) + 0(11)
= 0 + 2(1) + 0
=2
Note: The same value of the determinant will be obtained even though cofactor
expansion is performed on a different row or column.
The transpose of a cofactor matrix is an adjoint matrix.
Adjoint A = [Cofactor A]T

T
⎡ 6 0 − 4⎤
⎢ ⎥
= ⎢ −15 1 11 ⎥
⎢ −2 0 2 ⎥
⎣ ⎦
⎡ 6 −15 −2⎤
⎢ ⎥
=⎢ 0 1 0⎥
⎢ − 4 11 2 ⎥⎦
⎣
EXERCISE 4.3
1. Find the determinant for the following matrices:
⎡2 −5 ⎤ ⎡a b⎤
(a) ⎢ ⎥ (b) ⎢ ⎥
⎣1 3⎦ ⎣ −b a⎦
⎡1 2 3⎤ ⎡3 2 1⎤
⎢ ⎥ ⎢ ⎥
(c) ⎢2 3 0⎥ (d) ⎢0 3 2⎥
⎢3 0 0⎥⎦ ⎢0 0 3⎥⎦
⎣ ⎣
⎡1 a⎤
2. (a) Calculate the value for a, given that the determinant for ⎢ ⎥ is 6.
⎣ −2 4⎦
⎡a b⎤
⎢ ⎥
(b) Find the determinant for ⎢ 1 0⎥ .
⎢2 4 ⎥⎦
⎣

4.4 INVERSE MATRIX

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

EXERCISE 4.4
1. Find the inverse (if there exist any) for the following matrices.
Then, prove that your answers are correct.
⎡2 −3 −4 ⎤
⎡3 4⎤ ⎢ ⎥
(a) ⎢ ⎥ (b) ⎢0 0 − 1⎥
⎣ −2 2⎦ ⎢1
⎣ −2 1 ⎥⎦
⎡4 2 2⎤ ⎡1 4 −1⎤
⎢ ⎥ ⎢ ⎥
(c) ⎢ −1 − 3 4 ⎥ (d) ⎢2 3 −2 ⎥
⎢ 3 −1 6 ⎥ ⎢ −1 2 3 ⎥⎦
⎣ ⎦ ⎣
2. Given:
⎡2 3⎤ −1 −1 −1
A=⎢ ⎥ . Find A and show that (A ) = A.
⎣ −4 −5 ⎦
3. Suppose:
⎡a b⎤
B=⎢ ⎥
⎣c d⎦
(a) Determine B −1 .
(b) State the properties required for the existence of B −1 .
(c) Verify BB −1 = B −1 B = I.

4.5 SOLVING LINEAR EQUATION SYSTEM

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

Systems of linear equations can be represented by using matrix multiplication. For
example, consider the matrix equation:
⎡ x⎤
⎡1 4 −2 ⎤ ⎢ ⎥ ⎡ 4 ⎤
⎢ ⎥ y =⎢ ⎥
⎣2 −3 1 ⎦ ⎢⎢ ⎥⎥ ⎣ −3⎦
⎣z⎦
⎡ x + 4 y − 2z ⎤ ⎡ 4 ⎤
⎢ ⎥=⎢ ⎥
⎣ 2 x − 3 y + z ⎦ ⎣ −3⎦
By applying the concept of equality of matrices, the corresponding entries must be

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

⎡1 2 ⎤ ⎡ x ⎤ ⎡ 0⎤
It can be expressed as: ⎢ ⎥⎢ ⎥= ⎢ ⎥
⎣ 2 −1⎦ ⎣ y ⎦ ⎣ 5 ⎦
⎡1 2⎤ ⎡x⎤ ⎡0⎤
where: A = ⎢ ⎥ , X = ⎢ ⎥ and B = ⎢ ⎥ as a matrix equation system.
⎣ 2 −1⎦ ⎣ y⎦ ⎣5 ⎦
Example 4.9
Given a three-linear equation system:
2x – y + 3z = 3
x + 2y – z = 4
2x – 2z =0
⎡2 −1 3 ⎤ ⎡ x ⎤ ⎡ 3 ⎤
The matrix form is: ⎢⎢ 1 ⎥⎢ ⎥ ⎢ ⎥
2 −1⎥ ⎢ y ⎥ = ⎢ 4 ⎥ , where
⎢2
⎣ 0 −2 ⎥⎦ ⎢⎣ z ⎥⎦ ⎢⎣ 0 ⎥⎦
⎡2 −1 3 ⎤ ⎡x⎤ ⎡3⎤
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
A = ⎢1 2 −1⎥ , X = ⎢ y ⎥ and B = ⎢ 4 ⎥ .
⎢2
⎣ 0 −2 ⎥⎦ ⎢z⎥
⎣ ⎦
⎢0⎥
⎣ ⎦
4.5.2 Inverse Matrix Method

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

Example 4.10
Solve x + 2y = 3
2x − y = 5
using the inverse matrix method.
Solution:
Step 1: Convert the equation into a matrix equation form, which is
⎡1 2 ⎤ ⎡ x ⎤ ⎡ 0⎤ ⎡1 2 ⎤ ⎡x⎤ ⎡0 ⎤
⎢ ⎥ ⎢ ⎥ = ⎢ ⎥ where A = ⎢ ⎥ , X = ⎢ ⎥ and B = ⎢ ⎥
⎣2 −1⎦ ⎣ y ⎦ ⎣ 5⎦ ⎣ 2 −1⎦ ⎣ y⎦ ⎣5 ⎦
Step 2: Determine the inverse of matrix A, i.e. A−1 .
A = (1)( −1) − ( 2)( 2) = −5
⎡1 2⎤
1 ⎡ − 1 − 2 ⎤ ⎢5 5⎥
A−1 = × ⎢ ⎥ = ⎢ ⎥
−5 ⎣ −2 1 ⎦ ⎢2 1⎥
⎢⎣ 5 − ⎥
5⎦
Step 3: Use the formula X = A−1B to obtain the solution:
⎡1 2 ⎤
x
⎡ ⎤ ⎢ 5 5 ⎥ ⎡0 ⎤
⎢ ⎥ = ⎢ ⎥⎢ ⎥
⎣ y⎦ ⎢2 1 ⎥ ⎣5 ⎦
⎢⎣ 5 − 5 ⎥⎦
⎡2⎤
= ⎢ ⎥
⎣ −1⎦
Hence, solutions for the above simultaneous linear equations are x = 2,

y = −1.

Example 4.11
Solve 2x – y + 3z = 3
x + 2y – z = 4
2x – 2z =0
using the matrix inverse method.
Solution:
Step 1: Firstly, we have to convert the equation into a matrix equation form, which is
⎡2 −1 3 ⎤ ⎡ x ⎤ ⎡ 3 ⎤
⎢ ⎥⎢ ⎥ ⎢ ⎥
⎢1 2 −1⎥ ⎢ y ⎥ = ⎢ 4 ⎥ , where
⎢2
⎣ 0 −2 ⎥⎦ ⎢⎣ z ⎥⎦ ⎢⎣ 0 ⎥⎦
⎡2 −1 3 ⎤ ⎡x⎤ ⎡3⎤
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
A = ⎢1 2 −1⎥ , X = ⎢ y ⎥ and B = ⎢ 4 ⎥
⎢2
⎣ 0 −2 ⎥⎦ ⎢z⎥
⎣ ⎦
⎢0 ⎥
⎣ ⎦
Step 2: Determine the inverse of matrix A, i.e. A−1. To do this we need to compute
its determinant, i.e.
1 −1 2+ 2 2 3 3+ 2 2 3
A = ( −1)( −1) + ( 2)( −1) + ( 0)( −1)
1+ 2
2 −2 2 −2 1 −1
A = 1⎡⎣ (1)( −2) − ( −1)( 2) ⎤⎦ + 2 ⎡⎣ ( 2)( −2) − (3)( 2) ⎤⎦ + 0
A = 1( 0) + 2 ( −10)
A = −20
The minor elements are:
n11 = – 4, n12 = 0, n13 = – 4, n21 = 2 and n22 = – 10, n23 = 2
n31 = –5, n32 = –5, n33 = 5.

Therefore,
⎡ −4 0 −4 ⎤ ⎡ −4 0 −4 ⎤
Minor A = ⎢⎢ 2 −10
⎥
2 ⎥ , Cofactor A =
⎢
⎢ −2 −10
⎥
−2 ⎥
⎢ −5 −5 5 ⎥⎦ ⎢ −5 5 5 ⎥⎦
⎣ ⎣
⎡ −4 −2 −5⎤
Adjoint A = ⎢⎢ 0 −10 5⎥
⎥
⎢ −4 −2 5 ⎥⎦
⎣
Using the formula:
1
A −1 = × Adjoint A
A
⎡ −4 −2 −5 ⎤
1 ⎢ ⎥
= × ⎢0 −10 5⎥
−20 ⎢ −4
⎣ −2 5 ⎥⎦
⎡1 1 1 ⎤
⎢5 10 4 ⎥
⎢ ⎥
⎢ 1 1⎥
= ⎢0 − ⎥
2 4
⎢ ⎥
⎢1 1 1⎥
⎢⎣ 5 − ⎥
10 4⎦
Step 3: Use the formula X = A−1B to obtain the solution for:
⎡1 1 1 ⎤
⎢ 4 ⎥ ⎡ 3⎤ ⎡ 1 ⎤
⎡ x⎤ ⎢5 10
⎥
⎢ ⎥ ⎢ 1 1⎥⎢ ⎥ ⎢ ⎥
⎢ y⎥ = ⎢ 0 2
− ⎥ ⎢ 4⎥ = ⎢ 2⎥
4 ⎢ ⎥ ⎢ ⎥
⎢ z⎥ ⎢ ⎥ 0 1
⎣ ⎦ ⎢1 1 1⎥⎣ ⎦ ⎣ ⎦
⎢⎣ 5 − ⎥
10 4⎦
Thus, the solutions for the given simultaneous equations are x = 1, y = 2 and z = 1.

4.5.3 Cramer’s Rule

Another method which can be applied to solve the simultaneous equation AX = B
is Cramer’s rule. The following steps have to be taken to solve a system of n linear
equations in n unknowns.
Step 1: Determine the determinant for coefficient matrix A, that is⏐A⏐. If ⏐A⏐= 0,
Cramer’s rule is no longer applicable.
Step 2: Find ⏐Ai⏐where Ai is the matrix formed when i th column in matrix A is

substituted by matrix B as shown below:
⎡ a11 ⋅ ⋅ b1 ⋅ a1n ⎤
⎢a ⋅ ⋅ b2 ⋅ a2 n ⎥⎥
⎢ 21
⎢ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⎥
Ai = ⎢ ⎥
⎢ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⎥
⎢ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⎥
⎢ ⎥
⎣⎢ a1n ⋅ ⋅ bn ⋅ a2 n ⎦⎥
↑
ith column
Step 3: To obtain xi, we use the following formula:
Ai
xi =
A
Example 4.12
Solve x + 2y = 0
2x − y = 5
using the Cramer’s rule.
Solution:
⎡1 2 ⎤ ⎡ x ⎤ ⎡ 0⎤
Step 1: Determine ⏐A⏐ for ⎢ ⎥⎢ ⎥ = ⎢ ⎥
⎣ 2 −1⎦ ⎣ y ⎦ ⎣ 5⎦
⏐A⏐ = (1)(−1) – (2)(2) = −5

Step 2: Find ⏐A1⏐and ⏐A2⏐.
⎡0 2⎤
A1 = ⎢ ⎥ . Therefore, ⏐A1⏐= (0)( −1) – (2)(5) = −10
⎣ 5 −1⎦
⎡1 0⎤
A2 = ⎢ ⎥ . Thus, ⏐A2⏐= (1)(5) – (0)(2) = 5
⎣ 2 5⎦
Step 3: Obtain the value for x and y.
A 1 −10
x= = =2
A −5
A2 5
y= = = −1
A −5
Example 4.13
Solve 2x – y + 3z = 3
x + 2y – z = 4
2x – 2z = 0
using the Cramer’s rule method.
Solution:
⎡2 −1 3 ⎤ ⎡ x ⎤ ⎡ 3 ⎤
Step 1: Determine ⏐A⏐ for ⎢⎢ 1 ⎥⎢ ⎥ ⎢ ⎥
2 −1⎥ ⎢ y ⎥ = ⎢ 4 ⎥
⎢2
⎣ 0 −2 ⎥⎦ ⎢⎣ z ⎥⎦ ⎢⎣ 0 ⎥⎦
by using the cofactor expansion on the third row:
−1 3 2 −1
A = 2 ( −1) + ( −2)( −1)
3+1 3+ 3
2 −1 1 2
= 2 ⎡⎣ ( −1)( −1) − ( 2)(3) ⎤⎦ − 2 ⎡⎣ ( 2)( 2) − (1)( −1) ⎤⎦
= 2 ( −5) − 2 (5)
= −20
Step 2: Find ⏐A1⏐,⏐A2⏐ and ⏐A3⏐.
⎡3 −1 3 ⎤ ⎡2 3 3 ⎤ ⎡2 −1 3⎤
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
A1 = ⎢ 4 2 − 1 ⎥ , A2 = ⎢ 1 4 − 1 ⎥ , A3 = ⎢ 1 2 4⎥
⎢0
⎣ 0 − 2 ⎥⎦ ⎢2
⎣ 0 − 2 ⎥⎦ ⎢2
⎣ 0 0 ⎥⎦
3 −1
A1 = 2 ( −1) = −2 ⎡⎣ (3)( 2) − ( −1)( 4)⎤⎦ = −20
3+ 3
4 2
3 3 3+1 2 3
A2 = 2 ( −1) + ( −2)( −1)
3+1
4 −1 1 4
= 2 ⎡⎣ (3)( −1) − (3)( 4) ⎤⎦ + ( −2) ⎡⎣ ( 2)( 4) − (3)(1) ⎤⎦
= 2 ( −15) − 2 (5)
= −40
−1 3
A3 = 2 ( −1) = 2 ⎡⎣ ( −1)( 4) − (3)( 2) ⎤⎦ = −20
3+1
2 4
Step 3: Obtain the value for x, y and z.
A1 −20
x= = =1
A −20
A2 −40
y= = =2
A −20
A3 −20
z= = =1
A −20
ACTIVITY 4.1
What are the advantages of using matrices to solve linear equation

systems compared to algebraic techniques (substitution/elimination)?
Compile your answer and share it with your coursemates during tutorial.

EXERCISE 4.5
1. Express the following linear equation systems in the form of matrix
equations. Subsequently, solve the equations by using the matrix
inverse method.
(a) x + 2y = 14
2x – y = 5
(b) x + 2y + z = 7
x+y+z=4
3x + y + z = 2
2. Solve (1) using Cramer’s rule.
3. Solve the following equation system by using the appropriate

method:
3x + 2y – z = b1
3x – 2y + z = b 2
x – y – z = b3
where:
(a) b1 = 2, b2 = −2, b3 = 4
(b) b1 = 8, b2 = −3, b3 = 6

⎡1 −2 ⎤ ⎡4 7⎤
1. Given A = ⎢ ⎥ and B = ⎢−3 −1⎥ . Find:
⎣3 2.5⎦ ⎣ ⎦
(a) A + 2B.
⎡8 9⎤ ⎡9 7⎤ ⎡6 3⎤ ⎡9 11 ⎤
A. ⎢ ⎥ B. ⎢ ⎥ C. ⎢ ⎥ D. ⎢ ⎥
⎣−6 −2⎦ ⎣−3 0.5⎦ ⎣ 3 4⎦ ⎣9 4.5⎦
(b) B.
⎡4 −3⎤
A. ⎢ B. –25 C. –17 D. 17
⎣7 −1⎥⎦
T
⎡3 1 2⎤ ⎡ 4 ⎤
2. ⎢−2 0 4⎥ ⎢ ⎥ =
⎣ ⎦ ⎣−2⎦
⎡8 ⎤ ⎡16 ⎤
⎢ ⎥ ⎢ ⎥
A. ⎢ 4 ⎥ B. Does not exist C. [16 4 0 ] D. ⎢ 4 ⎥
⎢⎣ 0 ⎥⎦ ⎢⎣ 0 ⎥⎦
⎡ −3 −1 −1⎤
3. Given |A| = −6 and its cofactor is ⎢⎢ 3 ⎥
−1 −1⎥ . Find the inverse of A.
⎢ −6 −4 2 ⎥⎦
⎣
⎡−3 3 −6⎤ ⎡ −3 −1 −1⎤

⎢ ⎥ 1 ⎢ ⎥
A. ⎢ −1 −1 −4⎥ B. − ⎢ 3 −1 −1⎥
6
⎢⎣ −1 −1 2 ⎥⎦ ⎢⎣ −6 −4 2 ⎥⎦
⎡−3 3 −6⎤ ⎡ −3 −1 −1⎤

1 ⎢ ⎥ ⎢ ⎥
C. − ⎢ −1 −1 −4⎥ D. −6 ⎢ 3 −1 −1⎥
6
⎢⎣ −1 −1 2 ⎥⎦ ⎢⎣ −6 −4 2 ⎥⎦

⎡ 1 1 1⎤ ⎡ x⎤ ⎡1⎤
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
4. Given A = ⎢3 −2 1⎥ , X = ⎢ y ⎥ , B = ⎢ 2 ⎥ , and A = −1
⎢⎣2 5 3⎥⎦ ⎢⎣ z ⎥⎦ ⎢⎣ −1⎥⎦
Calculate the value of z.
A. –18 B. –10 C. –7 D. 18
• Matrix is an m by n, or simply, an mn set of quantities arranged in a rectangular

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

⎜ ⎟
a a22  a2 n ⎟
A = ⎜ 21
⎜   ⎟
⎜ ⎟
⎝ am1 am 2  amn ⎠ mth row
The quantity aij is called the element of the matrix. For example, a11 is the
first element of the matrix.
Observe that the element aij represents the element at row-i and column-j of
the matrix, i.e.
aij
ith row jth column

• A matrix is said to be of the order m × n if it has m rows and n columns. If the

number of rows and columns are identical (m = n), the matrix is then called a
square matrix. For a square matrix, the diagonal that contains the elements of
a11 , a22 , , ann is called the principal, main or leading diagonal.
Type of matrices are as follow:
− Zero Matrices
A matrix of any size (or order) with every element equal to zero is called
the zero or null matrix. It is normally written as O.
− Diagonal Matrices
A square matrix with the elements of aii ≠ 0 and aij = 0 for all i ≠ j is
called a diagonal matrix.
− Identity Matrices
A square matrix of order n × n with every element of its principal diagonal
equal to 1 and all the others equal to 0 is called the identity or unit matrix.
It is often denoted by the notation I.
− Triangular Matrices
A square matrix A is called an upper-triangular matrix if aij = 0 for every
i > j and a lower-triangular matrix if aij = 0 for every i < j.
− Equality of Matrices
Two matrices A and B of the same order is said to be equal if and only if
aij = bij for all i and j.
• Operations of matrices are as follow:
− Addition of Matrices
The sum of two equal size matrices A = ⎡⎣ aij ⎤⎦ and B = ⎡⎣bij ⎤⎦ is the matrix
C = ⎡⎣cij ⎤⎦ such that cij = aij + bij for all i and j.

− Subtraction of Matrices
The difference of two equal size matrices, A = ⎡⎣ aij ⎤⎦ and B = ⎡⎣bij ⎤⎦ , is
defined as A − B = A + (−1) B = ⎡⎣ aij − bij ⎤⎦ for all i and j.
− Matrix Multiplication by a Scalar

If A = ⎡⎣ aij ⎤⎦ and k is a scalar, then the multiplication of k and the matrix A
is the matrix B = ⎡⎣bij ⎤⎦ such that bij = kaij for all i and j.
− Matrix Multiplication
⎛c⎞
The product of a row vector ( a b ) and a column vector ⎜ ⎟ is defined as
⎝d ⎠
⎛c⎞
( a b ) ⎜ ⎟ = ac + bd .
⎝d ⎠
If A is a matrix of order m × p and B is a matrix of order p × n, then the

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

2×3 3× 2
number of column of A = number of row of B
Generally, matrix multiplication has the following properties:

 AB ≠ BA non-commutative law
 A( BC ) = ( AB)C associative law
A( B + C ) = AB + AC ⎫
 ⎬ distributive law
( A + B)C = AC + BC ⎭

• If there are two matrices A and B that satisfy AB = BA = I , then the matrix B is
called the inverse of A and is written as B = A−1. On the other hand, the matrix
A is the inverse of B and is written as A = B −1. The matrix A and its inverse
satisfy the multiplicative commutative law where AA−1 = A−1 A = I . So does
matrix B where BB −1 = B −1 B = I .
• Finding the Inverse of 2 × 2 Matrices
⎛a b⎞ −1 1 ⎛ d −b ⎞
If A = ⎜ ⎟ and Δ = ad − bc ≠ 0 then A = ⎜ ⎟.
⎝c d ⎠ Δ ⎝ −c a ⎠
• Elementary Row Operations (ERO) are operations performed on the rows of

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

Ri → kRi
− Add multiple of row j to row i and it is denoted as:

Ri → Ri + kR j

Cramer’s rule Matrix multiplication

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

Mifflin.
Addison-Wesley.

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

TOPIC 5 EXPONENTIAL AND LOGARITHMIC FUNCTIONS  103
5.1 PROPERTIES OF EXPONENTIALS

A function f is called an exponential function if it has a form f (x) = ax where the
base a is positive, with a ≠ 0 and its exponent x is any real number.
1. axa y = ax + a y
2. a xb x = (ab) x
ax
3. = a x− y
ay
x
ax ⎛ a⎞
4. =⎜ ⎟
bx ⎝ b ⎠
5. (a x ) y = a x y
1
6. a− x =
ax
7. a0 = 1
8. a1 = a
x
( a)
x
y
9. ay =
Example 5.1
Find the values of

3
(a) 3−2 × 33 (b) (22 )3 (c) 42
−3 −2
⎛ 1⎞ ⎛ 3⎞
(d) 3−2 (e) ⎜⎝ ⎟⎠ (f) ⎜⎝ ⎟⎠
2 2
Solutions:
(a) 3−2 × 33 (b) (2 ) (c) 3
2 3
= 22×3 ( 4)
3
42 =
= 3−2 + 3
= 26 = 23
= 31 = 64 =8
=3

104  TOPIC 5 EXPONENTIAL AND LOGARITHMIC FUNCTIONS
(d) 1 (e) ⎛ 1⎞
−3
(f) ⎛ 3⎞
−2
3−2
3−2 = = ( 2 −1 )
−3
32 ⎜⎝ ⎟⎠ ⎜⎝ ⎟⎠ =
2 2 2−2
1 = 23 1 1
= = ÷
9 9 4
=8
4
=
9
Example 5.2
Solve
1
(a) 82 x = 2 (b) e2 x +1 =
e
1 2
(c) 2 x 2 x−1 = (d) 3x – 94− x = 0
8
Solutions:
(a) 82 x = 2 (b) 1
e2 x +1 =
e
(2 )3 2x
=2 (Equate the base)
e = e−1
2 x +1
26 x = 21 (Compare the exponent) 2 x + 1 = −1

6x = 1 2 x = −2
1 x = −1
x=
6
(c) 1 (d) 2
3x − 9 4 − x = 0
2 x 2 x −1 =
8
3x = (32 )
2 4− x
x + x −1
2 = 2−3
2 x − 1 = −3 x2 = 8 − 2 x
2 x = −2 x2 + 2 x − 8 = 0
x = −1 ( x − 2)( x + 4) = 0
x = 2, x = −4
ACTIVITY 5.1
Between linear and exponential functions, which one has the most rapid
change in its values? Explain.

EXERCISE 5.1
Find the values of

1
(a) 3 × 3– 4 (b) 2–3 × 8 (c) 27 3
2
−3
⎛ 1⎞ 3 ⎛ 1⎞
(d) ⎜⎝ ⎟⎠ (e) ⎜⎝ ⎟⎠ (f) 42 × 2–1
8 5
EXERCISE 5.2
Solve
x
⎛ 1⎞
(a) ⎜⎝ ⎟⎠ = 16 (b) e x +3 = 1 (c) 4x – 2x+1 = 0
4
1 1
(d) 2x8x = 2 (e) 5− x =
25
(f) (e ) (e )
x2 x 2
=
e
5.2 EQUATIONS AND GRAPHS

There are two general shapes of exponential graphs. The shapes depend on the base
value of the exponential functions.
(a) Figure 5.1 show us the graph of y = ax where a > 1
Figure 5.1
(b) Figure 5.2 illustrate the graph of y = ax where 0 < a < 1
Figure 5.2
The following are the properties of the graph of an exponential function f(x) = ax.
(i) The y-intercept on the exponential graph is (0,1).
(ii) There is no x-intercept.
(iii) If a > 1, the graph is increasing from left to right.
(iv) If 0 < a < 1, the graph is decreasing from left to right.
Example 5.3
Sketch a graph of y = 2x.
Solution:
(a) Construct a table consisting several values of x and y.
(b) Plot the points on a plane.
(c) Draw a smooth curve through all the plotted points.
(i) x −2 −1 0 1 2 3
1 1
y 1 2 4 8
4 2

(ii)
Figure 5.3
Example 5.4
x
⎛ 1⎞
Sketch a graph of y = ⎜ ⎟ .
⎝ 2⎠
Solution:
(a) x −3 −2 −1 0 1 2
1 1
y 8 4 2 1
2 4
(b)
Figure 5.4

5.3 LOGARITHMIC FUNCTIONS

A logarithmic function with base a, is written as loga where a > 0, a ≠ 1. y is the
logarithm for x with base a, denoted by y = log a x.
y = log a x ⇔ ay = x
Logarithmic Exponential Form
Example 5.5
Convert the following equations from logarithmic to exponential forms:
(a) log 3 9 = 2
(b) log 10 y = 4
(c) log 2 8 = 3
Solution:
(a) 32 = 9
(b) 104 = y
(c) 23 = 8
Example 5.6
Convert the following equations from exponential to logarithmic forms:
(a) 25 = 32
(b) 100 = 1
(c) 53 = y

Solution:
(a) log 2 32 = 5
(b) log 10 1 = 0
(c) log 5 y = 3
Logarithm with base 10 is known as common logarithm, and is written as

log 10 x = log x = lg x.
Meanwhile, logarithm with base e is called natural logarithm and is denoted by

log e x = ln x.
ACTIVITY 5.2
Is logarithmic function a reciprocal operation for exponential

function? Why? Explain.
5.4 PROPERTIES OF LOGARITHMS

1. log a a = 1
2. log a mx = xlog a m
logb m
3. log a m = (Logarithm-base interchangeable formula)
logb a
4. log a M + log a N = log a MN
M
5. log a M − log a N = log a
N
6. If log a M = log a N then M = N
Example 5.7
Using the above properties, find the value for:
1
(a) log3 81 (b) ln (c) log a1
e
(d) log 4 2 (e) log 4 2 + log 4 8 (f) log 6 54 − log 6 9
Solutions:
(a) log 3 81 = log 3 34 (b) 1 1 (c) log a 1 = log a a 0

ln = log e
= 4log 3 3 e e = 0 (log a a )
= 4 (1) = log e e −1
=0
=4 = −1log e e
= −1(1)
= −1
(d) log 4 2 = log 4 4 (e) log 4 2 + log 4 8 = log 416 (f) 54

log 6 54 − log 6 9 = log 6
1 = log 4 42 9
= log 4 4 2 = log 6 6
= 2log 4 4
1 =1
= log 4 = 2 (1)
2 4
1 =2
=
2
Example 5.8
Find the value of x.
(a) log (2x + 1) = log (x + 6) (b) logx (6 – x) = 2
(c) log3 x = 2 (d) log x = –1
(e) log2 x4 + log2 4x = 12 (f) log x – log (x – 1) = log 4

Solutions:
Find the value of x.
(a) log ( 2 x + 1) = log ( x + 6) (b) log x ( 6 − x ) = 2

2x + 1 = x + 6 x2 = 6 − x
2x − x = 6 −1 x2 + x − 6 = 0
x=5 ( x + 3)( x − 2 ) = 0
x = −3, x = 2
x = −3 will be ignored as the base x > 0
So, x = 2
(c) log3 x = 2 (d) log x = −1

x = 32 log10 x = −1
x=9 x = 10−1
(e) log 2 x 4 + log 2 4 x = 12 (f) log x − log ( x − 1) = log 4

log 2 x 4 ( 4 x ) = 12 x ⎞
log ⎛⎜ = log 4
log 2 4 x5 = 12 ⎝ x − 1⎟⎠
x
4 x5 = 212 =4
x −1
212 x = 4x − 4
x5 =
22
−3x = −4
x5 = 210
−4
1 x=
x = ( 210 ) 5 −3
4
x = 22 x=
3
x=4

EXERCISE 5.3
1. Convert the following equations from logarithmic to exponential forms.
(a) log5 25 = 2 (b) log2 y = x (c) log10 0.1 = −1
2. Convert the following equations from exponential to logarithmic forms.
1
(a) 102 = 100 (b) a0 = 1 (c) 2−3 =
8
3. Using the properties of logarithms, find the values below:
(a) log2 16 (b) log8 2 (c) ln e
1 1
(d) log4 (e) ln 1 +1g 100 (f) log2 − log2 4
4 4
4. Find the value of x.

1
(a) log2 x = 0 (b) logx = −1 (c) log8 64 = x − 1
3
(d) logx (2x + 8) = 2 (e) logx + log (x – 15) = 2
(f) log3 (x + 1) = log3 (x – 1) + 1
ACTIVITY 5.3
1. What is the value for e? What is the significance of e?
2. How does a logarithmic function simplify the calculations

involving exponential function?

5.5 EQUATIONS AND GRAPHS

There are two general shapes of logarithmic graphs. They depend on the base value
of the logarithmic functions.
(a) y = loga x, where a > 1
Figure 5.5
(b) y = loga x, where 0 < a < 1
Figure 5.6
The following are the properties of the graph of logarithmic function f (x) = log a x.
(a) There is no y-intercept.
(b) The x-intercept on the logarithm graph is (1,0).
(c) If a > 1, the graph is increasing from left to right.
(d) If 0 < a < 1, the graph is decreasing from left to right.

Example 5.9
Sketch a graph of y = log2 x.
Solution:
(a) Convert the equation, from logarithmic to exponential form.
(b) Construct a table consisting several values of x and y.
(c) Draw a smooth curve through all the points.
(i) y = log2 x
2y = x
(ii) y −2 −1 0 1 2 3
1 1
x 1 2 4 8
4 2
(iii)
Figure 5.7

Example 5.10
Sketch a graph of y = log1/2 x
Solution:
y
(a) ⎛ 1⎞
⎜⎝ ⎟⎠ = x
2
(b) y −3 −2 −1 0 1 2
1 1
x 8 4 2 1
2 4
(c)
Figure 5.8
5.5.1 Application on Growth and Decay Processes

Exponential functions can be applied in growth and decay processes. The formula
for total growth is:
P = P0 ert

where
P = Number of residents after t years
P0 = Number of original residents
r = Percentage (rate) of growth
t = Time period
Example 5.11
Suppose the total number of residents in a given town is 20,000 and the rate of
growth of the residents is 5% per year.
(a) Determine the total number of residents in this town six years from now.
(b) How many years will it take for the number of residents to double?
Solution:
(a) Substitute all the given values into the formula to find the value of P.
P = P0 e rt , where P0 = 20,000, r = 5% and t = 6.

= 5/100
= 0.05
P = 20,000e 0.05(6)
= 20,000e 0.3
= 26,997
Hence, the number of the town residents six years from now is 26,997.

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

5.5.2 Investment with Compound Interest

The total amount of money, denoted by S is the compound amount for a sum of
money P compounding after the n th year, where the interest is payable k times at
the rate of r% per annum, is given by the formula below:
nk
⎛ r⎞
S = P ⎜1 + ⎟
⎝ k⎠
where:
S = Compound amount or the prospective value
P = Initial investment or the principal value
r = Interest rate per annum
k = Number of interest paid (compound) in a year
n = Number of year/s
Example 5.13
If RM1,000 is invested at the rate of 6% per annum, compounding (payable) on a

quarterly basis, what would the total amount be after 10 years?
Solution:
S = ?, P = 1000, r = 6% = 0.06, k = Every quarter = 4 × a year, n = 10
Then
nk
⎛ r⎞
S = P ⎜1 + ⎟
⎝ k⎠
(10 )( 4 )
⎛ 0.06 ⎞
S = 1,000 ⎜1 +
⎝ 4 ⎟⎠
S = 1,000 (1.015 )
40
S = 1,000 (1.81402 )
S = 1,814.02

Example 5.14
Determine the principal amount of a loan, given that the prospective amount
payable after 10 years is RM21,589.20 and the compound rate of 8% per annum,
compounding (payable) on a yearly basis.
Solution:
S = 21,589.20, P = ?, r = 8% = 0.08, k = Every year = 1 × a year, n = 10
Then
nk
⎛ r⎞
S = P ⎜1 + ⎟
⎝ k⎠
(10 )(1)
⎛ 0.08 ⎞
21,589.20 = P ⎜1 +
⎝ 1 ⎟⎠
21,589.20 = P (1.08 )
10
21,589.20 = P ( 2.15892 )
21,589.20
P=
2.15892
P = 10,000
Visit the following websites to have a better understanding of logarithms:
(a) https://www.khanacademy.org/math/algebra2/exponential-and-logarithmic-
functions
(b) http://www.themathpage.com/alg/logarithms.htm

EXERCISE 5.4
1. (a) Given that the price of one acre of land is increasing at a rate of
2% per year. How long will it take for the price to increase to
RM30,000, if its current value is RM10,000?
(b) Due to an economic downfall, the total number of residents in a

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

values, compound interest rates and time period:
(a) RM5,500; 6% per annum compounding on a monthly basis; 18

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

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

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

values, compound interest rates and time period:
(a) RM16,084.82; 6% per annum compounding monthly; 14

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

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

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

months; five years and three months.

EXERCISE 5.5
-1
1
1. Is x 2 = ?
x2
A. Yes B. No
2. Given 2x 8x = 4. Solve x.
−1 1 1
A. B. 0 C. D.
2 4 2
1
3. Calculate 1 + lg .
10
A. −10 B. −1 C. 1 D. 10
4. Suppose RM5,000 is invested for 10 years at 6% per annum,

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

• The natural exponential function is a function that is defined as

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

Exponential Function Logarithm Function
Decay

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

Firstly, how do we calculate compound interest? Compound interest is calculated
based on the original principal plus the interest accumulated from the previous
period. It usually makes a deposit grow at a faster rate than simple interest. This is
because simple interest is always calculated based on the original principal. Let us
look at an example.

124  TOPIC 6 COMPOUND INTEREST: PRESENT VALUE AND FUTURE VALUE
Example 6.1
RM1, 000.00 is invested for three years. Find the interest earned if the interest rate is:
(a) 9% per annum simple interest; and

(b) 9% compounded annually.
Solution:
The calculation for Example 6.1 can be simplified into Table 6.1.
Table 6.1: Calculation for Example 6.1
Compound
Year Simple Interest Amount Amount
Interest
1 1,000 × 0.09 × 1 1,000 + 90 1,000 × 0.09 × 1 1,000 + 90 = 1,090
= 90 = 1,090 = 90
2 1,000 × 0.09 × 1 1,090 + 90 1,090 × 0.09 × 1 1,090 + 98.1
= 90 = 1,180 = 98.1 = 1,188.10
3 1,000 × 0.09 × 1 1,180 + 90 1,188.1 × 0.09 × 1 1,188.10 + 106.93
= 90 = 1,270 = 106.93 = 1,295.03
(a) Total interest earned = 90 × 3 = RM270.00
(b) Total interest earned = 90 + 98.1 + 106.93 = RM295.03

* The results indicate that compound interest is more than a simple interest.
There are some important terms commonly used in relation to compound interest
as listed in Table 6.2.

TOPIC 6 COMPOUND INTEREST: PRESENT VALUE AND FUTURE VALUE  125
Table 6.2: Common Important Terms Used in Relation to Compound Interest
Term Description
Original principal, P The original amount deposited.
Annual interest rate, k The interest for a year together with the frequency in which
interest is calculated in a year.
Interest period or The length of time in which interest is calculated.
conversion period
Frequency of Number of times interest is calculated in a year.
conversions, m
Periodic interest rate, Interest rate for each interest period.
i = k/m
Number of interest n with n = mt (t is time in years).
periods in the
investment period
Example 6.2
RM7,500.00 is invested at 12% compound quarterly for two years and three
months. Find the:
(a) Original principal, P;
(b) Annual interest rate, k;
(c) Interest period;
(d) Frequency of conversions, m;
(e) Periodic interest rate, i; and
(f) Number of interest periods in the investment period, n.

Solution:
(a) P = RM7,500.00
(b) k = 12% compounded quarterly
(c) The interest period is three months
(d) m=4
(e) i = k/m
= 0.12/4
(f) n = mt
= 4 × 2¼¼
= 9 interest periods
ACTIVITY 6.1
RM4,500.00 is invested at 8% compounded semi-annually for three years

and six months. Find the:
(a) Original principal;
(b) Annual interest rate;
(c) Interest period;
(d) Frequency of conversions;
(e) Periodic interest rate; and
(f) Number of interest periods in the investment period.

6.1.1 Compound Interest Formula

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

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

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

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

i = k/m = 0.045/2
n = mt = 2 × 3 = 6
Using S = P(1+i)n, we will get

S = 8,500(1 + 0.045/2)6
= RM9,714.02

(c) Given P = RM8,500.00

i = k/m = 0.055/4
n = mt = 4 × 3½ = 14
Using S = P(1 + i)n, we get

S = 8,500(1 + 0.055/4)14
= RM10, 290.85
(d) Given P = RM8,500

i = k/m = 0.035/6
n = mt = 6 × 1½ = 9

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

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

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

S = 4,440(1 + 0.04/12)52
= RM5, 278.80

Interest earned, I = S – P
= 5,278.80 – 4,440.00
= RM838.80
Example 6.5
Let us say that RM7,550.00 is invested for five years and three months. If the
investment offered 6% compounded quarterly interest for the first three years and
7% compounded monthly interest for the rest of the period, calculate the:
(a) Future value of investment; and
(b) Total interest earned.
Solution:
Draw a time diagram (see Figure 6.1).
Figure 6.1: Time diagram for Example 9.5
(a) Amount of investment at the end of three years,
S3 = P(1 + i)n
= 7,550(1 + 0.06/4)12
= RM9,026.92
Let P = RM9, 026.92
Amount of investment at the end of five years and three months,
S5¼ = P(1 + i)
= 90,26.92(1 + 0.07/12)27
= RM10,561.90

(b) Total interest earned,

I = S–P
= 10,561.90 – 7,550
= RM3,011.90
ACTIVITY 6.2
1. Suraya invested RM3,600.00 in an account for six years at 6.4%

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

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

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

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

Solutions:
(a) Given P = RM1,000.00

i = 0.1255
n = 1
Using formula S = P(1 + i)n, we get

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

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

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

Example 6.7
Find the effective rate which is equivalent to 14.5% compounded monthly.
Solution:
Given i = 0.145/12, m = 12
r = (1 + i)m – 1
= (1 + 0.145/12)12 – 1
= 0.1550
= 15.5%
ACTIVITY 6.3
1. Find the effective rate which is equivalent to 13% compounded
semi-annually.
2. Which yields more interest, 7% compounded monthly or 7.1%
compounded annually?
6.3 FUTURE AND PRESENT VALUE

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

time inclusive of principal and interest earned.
How about the present value?
Present value is the reverse of future value which is the value of money now
and it is used to calculate the current value of a future amount.
From S = P (1 + i)n, we get present value, P = S (1 + i)-n.
Let us look at some examples.

Example 6.8
You would like to have an accumulated amount of RM20,000.00 in a savings

account that offers interest at 12.5% compounded quarterly in five years. How
much would you have to invest today?
Solution:
Given S = RM20,000.00
i = 0.125/4
n = 4 × 5 = 20
Using formula P = S(1 + i)-n, we get

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

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

Solution:
Draw a diagram (see Figure 6.2).
Figure 6.2: Time diagram for Example 9.10
Using formula P = S(1 + i)-n, we get

P = 2,500(1 + 0.10/2)-4
= RM2,056.76
ACTIVITY 6.4
1. Calculate the amount of money needed now to purchase a laptop
valued at RM3,500.00 in a year if you invest the money at 6.2%
compounded quarterly.
2. Mariana wishes to accumulate RM6,000.00 at the end of five years.

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

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

obligations, debts and repayments at a comparison date which is also called
focal date.

We can describe the relationship as follows:
Amount paid = Amount owed at the focal date

or
Amount given = Amount received at the focal date
There are four procedures that can be applied in solving equation of value. The
procedures are:
(a) Draw a time diagram with all the dated values.
(b) Choose a focal date (also known as comparison date).
(c) Bring all dated values to the focal date using the formula S = P(1 + i)n or
P = S(1 + i)-n.
(d) Apply the concept where amount paid = Amount paid at the focal date, set up
an equation of value and then solve.
Example 6.11
Halim has two debts. The first debt amounting to RM1,500.00 is due at the end of
first year and another debt of RM6,500.00 is due at the end of fifth year. Let us say:
(a) Halim wishes to settle all his debts by making a single repayment at the end
of the second year. What is this single repayment if the money is worth 5%
compounded quarterly?
(b) Halim wishes to settle all his debts by making two equal repayments, one at
the end of the second year and another at the end of the fourth year. What is
this payment if the money is worth 5% compounded quarterly?

Solution:
(a) Step 1: Draw a time diagram with all the dated values (Figure 6.3).
Figure 6.3: Time diagram for Example 6.11(a)
Let the single repayment be X.
Step 2: Fix the focal date.
The focal date is at the end of the second year.
Step 3: Bring all dated values to the focal date.
(i) Amount of the debt of RM1,500 at the focal date is:
S = P(1 + i)n with
P = RM1,500.00; i = 0.05/4 and n = 4.
Thus
S = P(1 + i )n
= 1,500(1 + 0.05/4)4
= RM1,576.42

(ii) Amount of debt of RM6,500 at the focal date is:
P = S(1 + i)-n with
S = RM6,500.00; i = 0.05/4 and n = 3 × 4 = 12. Thus
P = S(1 + i)-n
= 6,500(1 + 0.05/4)-12
= RM5,599.81
(iii) Amount of repayment, X, at the focal date is RMX.
Step 4: Formulate the equation of values.
X = RM1,576.42 + RM5,599.81
= RM7,176.23
(b) Step 1: Draw a time diagram with all the dated values (Figure 6.4).
Figure 6.4: Time diagram for Example 6.11(b)
Let the single repayment be X.
Step 2: Fix the focal date.
The focal date is at the end of the fourth year.

Step 3: Bring all dated values to the focal date.
(i) Amount of debt of RM1,500.00 at the focal date is S = P(1 + i)n with:
P = RM1,500.00; i = 0.05/4 and n = 3 × 4 = 12. Thus
S = P(1 + i)n
= 1,500(1 + 0.05/4)12
= RM1,741.13
(ii) Amount of debt of RM6,500 at the focal date is:
S = P(1 + i)-n with
S = RM6,500.00; i = 0.05/4 and n = 4. Thus
P = S(1 + i)-n
= 6,500(1 + 0.05/4)-4
= RM6,184.91
(iii) Amount of repayment, X (of Year Two) at the focal date is:
S = P(1 + i)n with P = RMX; i = 0.05/4 and n = 8. Thus
S = X (1 + 0.05/4)8
= 1.1045X
(iv) Amount of repayment X at the focal date is RMX
Step 4: Formulate the equation of values.
1.1045X + X = RM1,741.13 + RM6, 184.91

2.1045X = RM7,926.04
7, 926.04
X =
2.1045
= RM3,766.23

ACTIVITY 6.5
Sheila has two debts. A debt of RM1, 200.00 will mature at the end of the
first year and another debt of RM2, 400.00 at the end of the sixth year.
(a) Sheila wants to settle both debts by making a single payment at the
end of the second year. Find this payment if the money is worth 6%
compounded monthly.
(b) Sheila wants to settle the debts by making two equal payments at the
end of the third and fifth years. Find this repayment if the money is
worth 6% compounded monthly.
• Compound interest is calculated based on the principal plus the interest.
• Future value is the accumulated amount calculated based on a given interest rate
after a certain period.
• Effective rate is interest rate calculated once a year.
• Nominal rate is interest rate calculated more than once a year.
• The present value of an amount S at i % per interest period due in n interest

period is P = S(1 + i)-n.
• The equation of value is set up based on the following relationship:

or
Amount given = Amount received at the focal date

Compound interest Future value

Effective rate Nominal rate
Equation of value Present value
Lau, T. K., Phang, Y. N., & Wee, K. K. (2012). Business mathematics for UiTM.
Kuala Lumpur, Malaysia: Oxford-Fajar.

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

TOPIC 7 DIFFERENTIATION  143
The common notation used to denote differentiation of a function, with respect to a

dy
variable x, is f ′ ( x) and is pronounced as f prime x and (pronounced “dee y, dee
dx
x”).
If f ′ ( x) can be found, f is said to be differentiable, and f ′ ( x) is called the derivative

of the function f with respect to variable x or differentiation of f over x.
7.1 CONSTANT RULE

RULE I: CONSTANT RULE
If f (x) = c, where c is a constant, then f ′(x) = 0.
Example 7.1
(a) If f (x) = 15, then f ′(x) = 0.
(b) If g (x) = −1.4, then g ′ (x) = 0.
dy
(c) If y = 3x 0 , then y′ = = 0 , as x 0 = 1.
dx
(d) If y = e 5 , then y ′ = 0, when e 5 is a constant.
(e) If y = log 7, then y ′ = 0.

144  TOPIC 7 DIFFERENTIATION
7.2 POWER RULE

RULE II: POWER RULE
If f (x) = x n where n is a constant, then f ′(x) = nx n–1
Example 7.2
(a) If f (x) = x 6 , then

dy
= 6 x 6 –1
dx
= 6x5
3
1 −
(b) If h ( w ) = 3
, then h ( w ) = w 5
w5
3 − 3 −1
Hence, h′ ( w) = − w 5
5
8
3 −
=− w 5
5
d ⎛ 43 ⎞
(c) If y = 3 x 4 , then y′ = ⎜x ⎟
dx ⎝ ⎠
4
4 −1
= x 3
3
1
4
= x 3
3

7.3 CONSTANT TIMES A FUNCTION RULE

RULE III: CONSTANT TIMES A FUNCTION RULE
If f (x) = c ( g ( x )) , where c is a constant and g ′(x) exists, then f ′(x) = c(g ′ (x))
Example 7.3
dy ⎛ d
Suppose y = 9 x 4 then
dx
= 9⎜
⎝ d x
( x 4 )⎟
⎞
⎠
= 9 ( 4 x 4 −1 )
= 9 (4 x 3 )
= 36 x 3
Example 7.4
Given f ( x ) = 4 x3 . Find f ′(x).
Solution:
Convert f (x) into exponential form or power form.
1
f ( x ) = 4 ( x3 ) 2
3
= 4x 2
Therefore;
d ⎛ 32 ⎞
f ′ ( x) = 4 ⎜x ⎟
dx ⎝ ⎠
⎛ 3 32 − 1 ⎞
= 4 ⎜⎜ x ⎟⎟
⎝2 ⎠
1
⎛3 2 ⎞
= 4 ⎜⎜ x ⎟⎟
⎝2 ⎠
1
= 6 x 2 or 6 x

7.4 RULES OF SUMS AND DIFFERENCES OF

FUNCTIONS
RULE IV: RULES OF SUMS AND DIFFERENCES OF FUNCTIONS
(a) If f (x) = g(x) + h(x), where g ′(x) and h ′(x) exist, then f ′(x) = g ′(x) + h ′(x)
(b) If f (x) = g(x) − h( x ) , where g′(x) and h ′(x) exist, then f ′(x) = g ′(x) − h ′(x)
Example 7.5
(a) Suppose f (x) = 3x2 + 5. According to Rule IV, f (x) = g(x) + h(x), where
g(x) = 3x 2 and h(x) = 5.
f ′(x) = 3 ( 2 x 2 – 1 ) + 0
= 6x
(b) Suppose f (x) = 10x 5 – 6x . According to Rule IV, f (x) = g(x) – h(x), where
g(x) = 10x 5 and h(x) = 6x. Then;
f ' (x ) = 1 0 ( 5 x 5 – 1 ) – 6 (1 x 1 – 1 )
= 1 0(5 x 4 ) – 6(x 0 )
= 50 x 4 – 6
(c) Suppose f (x) = 5 x 4 – 8 x 3 + 3 x 2 – x + 12 .
Differentiation is performed on each expression of f (x).
f '( x) = 5(4 x 4–1 ) – 8(3x3–1 ) + 3(2 x 2–1 ) – 1 + 0

= 20 x3 – 24 x 2 + 6 x – 1
Example 7.6
5 ( x 4 − 3)
Given f ( x ) = . Find f ′(x).
2

Solution:
Simplify f (x):
5 x 4 − 15
f ( x) =
2
5 x 15
4
= −
2 2
5 15
= x4 −
2 2
d ⎛ 5 x 4 ⎞ d ⎛ 15 ⎞
Therefore, f ′ ( x ) = ⎜ ⎟−
dx ⎝ 2 ⎠ dx ⎝⎜ 2 ⎠⎟
5
= ( 4 x 4 −1 ) − 0
2
20 x 3
=
2
= 10 x 3
Example 7.7
7 x3 + x
Given f ( x ) = . Find f ′(x).
2 x
Solution:
Convert f (x) by writing it in exponential form or power form.
7 x3 + x
f ( x) = 1
2x 2
7 x3 x
= 1+ 1
2x 2 2x 2
7 3− 1 1 1− 1
= x 2+ x 2
2 2
5
7 1 1
= x2 + x2
2 2

7 ⎛ 5 5 −1 ⎞ 1 ⎛ 1 1 −1 ⎞
Therefore, f ′ ( x ) = ⎜ x 2 ⎟ + ⎜ x 2 ⎟
2⎝2 ⎠ 2⎝ 2 ⎠
3 1
35 1 −
= x2 + x 2
4 4
Example 7.8
3
Suppose f ( x ) = x 5 ( x 2 + 7 x + 1) . Find f ′(x).
Solution:
Expand f (x) by applying the exponential rule.
13 8 3
f ( x) = x 5 + 7x5 + x5
13 135 −1 ⎛ 8 8 −1 ⎞ 3 3 −1
f ′ ( x) = x + 7⎜ x5 ⎟ + x5
5 ⎝5 ⎠ 5
13 85 56 53 3 − 52
= x + x + x
5 5 5
8 3 2
−
13x 5 + 56 x 5 + 3x 5
=
5

7.5 PRODUCT RULE

RULE V: PRODUCT RULE
If f ( x ) = g ( x ) h ( x ), where g' ( x ) and h' ( x ) exist, then

f ′ ( x ) = h ( x ) g ′ ( x ) + g ( x ) h′ ( x )
Example 7.9
If f (x) = 2 x (3 x 2 – 2). Determine the derivative for f (x).
Solution:
Let g(x) = 2x and h(x) = (3x2 – 2) .
Then g′(x) = 2 and h′(x) = 6x
Therefore f ′(x) = (3x 2 – 2)(2) + 2x(6x)

= 6x 2 – 4 + 12x 2
= 18x 2 – 4
Example 7.10
If f (x) = (x + 3)( 4x 2 + 2x). Determine the derivative for f (x).
Solution:
Let g(x) = x + 3 and h (x) = 4x 2 + 2x, then
g’ (x) = 1 and h’ (x) = 8x + 2
Therefore f’(x) = ( 4x 2 + 2x)(1) + (x + 3)(8x + 2)

= 4x 2 + 2x + 8x 2 + 24x + 2x + 6
= 12x 2 + 28x + 6

Example 7.11
Given s(t) = (8 – 7t)(t2 – 2). Determine s′(t).
Solution:
d d
s′ (t ) = (8 − 7t ) (t 2 − 2 ) + (t 2 − 2 ) (8 − 7t )
dx dx
= (8 − 7t )( 2t ) + (t − 2 ) ( −7 )
2
= 16t − 14t 2 − 7t 2 + 14
= −21t 2 + 16t + 14
Example 7.12
Given y = ( x 2 + 3x – 2)( 2x 2 – x – 3)
Solution:
dy d d
= ( x 2 + 3 x − 2 ) ( 2 x 2 − x − 3 ) + ( 2 x 2 − x − 3) ( x 2 + 3 x − 2 )
dx dx dx
= ( x + 3x − 2 ) ( 4 x − 1) + ( 2 x − x − 3) ( 2 x + 3)
2 2
= ( 4 x 3 − x 2 + 12 x 2 − 3x − 8 x + 2 ) + ( 4 x3 + 6 x 2 − 2 x 2 − 3x − 6 x − 9 )
= ( 4 x 3 + 11x 2 − 11x + 2 ) + ( 4 x3 + 4 x 2 − 9 x − 9 )
= 8 x3 + 15 x 2 − 20 x − 7
7.6 QUOTIENT RULE

RULE VI: QUOTIENT RULE
g ( x)
If y = f ( x ) = , where g′(x) and h′(x) exist, then
h( x)
h ( x ) g ′ ( x ) − g ( x ) h′ ( x )
f ′ ( x) =
⎡⎣ h ( x )⎦⎤
2

Example 7.13
x
Given f ( x ) =
x −1
Solution:
d d
( x − 1) ( x ) − ( x ) ( x − 1)
f ′ ( x) = dx dx
( )
2
x − 1
( x − 1)(1) − ( x )(1)
=
( x − 1)
2
( x − 1) − x
=
( x − 1)
2
−1
=
( x − 1)
2
Example 7.14
2x − 3
y=
4x +1
Solution:
d d
dy ( 4 x + 1) dx ( 2 x − 3) − ( 2 x − 3) dx ( 4 x + 1)
=
dx ( 4 x + 1)
2
( 4 x + 1)( 2 ) − ( 2 x − 3)( 4 )
=
( 4 x + 1)
2
8 x + 2 − 8 x + 12
=
( 4 x + 1)
2
14
=
( 4 x + 1)
2

Example 7.15
8x2 − 2 x + 1
y=
x2 − 5x
Solution:
dy 8 x 2 − 2 x + 1
= 2
dx x − 5x
d d 2
( x 2 − 5x) dx (8x2 − 2 x + 1) − (8x 2 − 2 x + 1) dx ( x − 5x)
=
( x2 − 5x)
2
=
(x 2
− 5 x ) (16 x − 2) − (8 x 2 − 2 x + 1) ( 2 x − 5)
(x − 5x)
2
2
=
(16 x 3
− 2 x 2 − 80 x 2 + 10 x ) − (16 x3 − 40 x 2 − 4 x 2 + 10 x + 2 x − 5)
(x − 5x)
2
2
16 x3 − 82 x 2 + 10 x − 16 x3 + 44 x 2 − 12 x + 5
=
(x − 5x)
2
2
−38 x 2 − 2 x + 5
=
(x − 5x)
2
2
7.7 CHAIN RULE

RULE VII: CHAIN RULE
dy ⎛ dy ⎞⎛ du ⎞
If y = f(u), where u = g(x), then y′ ( x ) = =
dx ⎜⎝ du ⎟⎜ ⎟
⎠⎝ dx ⎠
Example 7.16
dy
Given y = (1 + x)4 . Determine .
dx

Solution:
dy du
Step 1: Introduce one new variable, u, so that and are easy to calculate.
du dx
Let u = 1 + x, then y = u 4
dy du
Step 2: Calculate and .
du dx
When u = 1 + x, and y = u4 ,
du dy
Then =1 and = 4u 3
dx du
dy
Step 3: Use the chain rule to calculate .
dx
y′ ( x ) = =
dx ⎜⎝ du ⎟⎜ ⎟
⎠⎝ dx ⎠
= 4u 3 (1)
= 4u 3
dy
Step 4: Calculate into expressions of x.
dx
dy
Substitute u = 1 + x into , gives
dx
dy
= 4(1 + x) 3.
dx
Example 7.17
dy
Determine , given y = (3 + x 3 )4.
dx

Solution:
(a) Let u = (3 + x 3 ), hence y = u 4
du dy
(b) Then = 3x 2 and = 4u 3
dx du
(c) By using the chain rule: =
dx ⎜⎝ du ⎟⎜ ⎟
⎠⎝ dx ⎠
= 4u3 ( 3x 2 )
dy
(d) Substitute u = (3 + x 3 ) into .
dx
dy
= 4 (3 + x3 ) (3x 2 )
3
dx
= 12 x 2 (3 + x3 )
3
Example 7.18
3
Given y = ( 2 x 2 + 1) 2 , determine y’ (x).
Solution:
3
(a) Let u = ( 2x 2 + 1), hence y = (u ) 2
du dy 3 12
(b) Then = 4x and = u
dx du 2
(c) By using the chain rule: = ⎜ ⎟⎜ ⎟
dx ⎝ du ⎠⎝ dx ⎠
3 1
= u 2 (4x)
2
dy
(d) Substitute u = ( 2x 2 + 1) into .
dx
1
dy 3
= ( 2 x 2 + 1) 2 ( 4 x )
dx 2
1
= 6 x ( 2 x 2 + 1) 2

7.8 POWER RULE (A SPECIAL CASE OF CHAIN

RULE)
RULE VIII: POWER RULE (A SPECIAL CASE OF CHAIN RULE)
If y = ⎡⎣ g ( x )⎤⎦ , then y′ = n ⎡⎣ g ( x )⎦⎤ g′ ( x ) .

n n −1
Example 7.19
Given y = (3x + 4)7. Find y′(x).
Solution:
Let g(x) = 3x + 4, then g′(x) = 3 and n = 7.
Therefore y′(x) = 7(3x + 4)7–1(3)

= 21(3x + 4)6
Example 7.20
Given y = (13 – x 4 )5 . Find y ' ( x) .
Solution:
Let g(x) = (13 – x 4 ), then g′(x) = – 4x 3 and n = 5.
Therefore y′(x) = 5(13 – x 4 ) 5–1 (– 4x 3 )

= –20 x 3 (13 – x 4 )4
Example 7.21
Differentiate the function y = (3x 2 – 2x + 1)1/2 .

Solution:
)
1
dy 1
( d
−1
= 3x2 − 2 x + 1 (3x2 − 2 x + 1)
2
dx 2 dx
1 1
= (3x 2 − 2 x + 1) 2 ( 6 x − 2 )
−
2
1
= (3x 2 − 2 x + 1)
−
2
(3x − 1)
Example 7.22
3
2x + 2 ⎞
Differentiate the function f ( x ) = 3 ⎛⎜ ⎟
⎝ x+3 ⎠
Solution:
3−1
⎛ 2x + 2 ⎞ d ⎛ 2x + 2 ⎞
f ′ ( x ) = 3⎜ ⎟
⎝ x+3 ⎠ dx ⎜⎝ x + 3 ⎟⎠
⎛ d d
2 ( x + 3)
⎛ 2x + 2 ⎞ ⎜
( 2 x + 2 ) − ( 2 x + 2 ) ( x + 3) ⎞⎟
= 3⎜ dx dx
⎟ ⎜ ⎟
⎝ x+3 ⎠ ⎜ ( )
2
⎜
x + 3 ⎟⎟
⎝ ⎠
2⎛ ⎞
⎛ 2 x + 2 ⎞ ⎜ ( x + 3 )( 2 ) − ( 2 x + 2 )(1) ⎟
= 3⎜ ⎟
⎝ x + 3 ⎠ ⎜⎜ 2 ⎟⎟
⎝ ( x + 3) ⎠
2
⎛ 2x + 2 ⎞ ⎛ 2x + 6 − 2x − 2 ⎞
= 3⎜ ⎟ ⎜ ⎟
⎝ x + 3 ⎠ ⎜⎝ ( x + 3)
2
⎟
⎠
2
⎛ 2x + 2 ⎞ ⎛ 4 ⎞
= 3⎜ ⎟ ⎜⎜ ⎟
⎝ x + 3 ⎠ ⎝ ( x + 3) ⎟⎠
2

EXERCISE 7.1
Find the first degree differentiation for the following functions:
(a) f (x) = 15 (b) f ( x) = 5 x 0
(c) y = 6e 3 (d) y = −8 ln2
(e) y = x 3 (x 4 ) (f) h(s ) = x 5
2
− 1
(g) p(r ) = r 3
(h) s(t ) = 3
t5
(i) y = 4 x5 (j) y = x5
3
(k) y = 4 8 x2 (l) f ( x) = 5 x 2 + − 4
x
x
(m) f (x) = 3x + 7 (n) f ( x) = 2 −
4
5( x 4 − 3)
(o) y = x 2 + 4x + 8 (p) f ( x) =
2
4 x3 + 7 x − 4
(q) f ( x) = (r) y = (1 + x) (1 – 2x)4
x
x +1
(s) y = (2x – 1) (x + 1)4 (t) y=
x2 + 2
4 x3 + 1
(u) y= (v) y = (2x – 1)2
x2 + 1
(w) y = ( x 2 + 4)5 (x) y = 3x 2 − 2 x + 1
3
⎛ 2x + 2 ⎞
(y) f ( x) = x 2 − 5 x (z) f ( x) = ⎜ ⎟
⎝ x+3 ⎠

ACTIVITY 7.1
For more details on the rules of differentiation visit:

https://www.intmath.com/differentiation/differentiation-intro.php
EXERCISE 7.2
1. If f ( x) = x 4 + 5 x, then f ′(1) is
A. 0 B. 4 C. 5 D. 9
2
2. If g ( x) = 3 x 4 + , then g ′( x ) =
x
3
−
A. 3 + x B. 3x 3 − x 2
3
−
C. 12x − x D. 12x − x 3 2
8(9 − 3x)5
3. If y = , then y′ =
5
8(9 − 3 x)5
A. −24(9 − 3x) 4 B. −
25
8(9 − 3x)5
C. D. 24(9 − 3 x) 4
25
3 − 2x 2
4. If y = , then y′ =
x2
3 6 4 3 − 4x
A. −2 B. − C. − D.
x2 x3 x3 x4
5. Given y = 5 x 3 − x + 8, then y′′(2) − y′(1) .
A. 14 B. 34 C. 46 D. 60

You are required to understand and comprehend the following rules of

differentiation:
• If f (x) = c, where c is a constant, then f ′(x) = 0.
• If f (x) = x n where n is a constant, then f ′(x) = nx n –1
• If f (x) = c (g (x)) , where c is a constant and g′(x) exists, then f ′(x) = c(g′(x))
• If f (x) = g(x) ± h(x), where g′(x) and h′(x) exist, then f ′(x) = g′(x) ± h′(x)
• If f (x) = g(x) h(x), where g′(x) and h′(x) exist, then f ′(x) = h(x) g′(x) + g(x) h′(x)
g ( x)
• If y = f ( x ) = , where g′(x) and h′(x) exist, then
h( x)
h ( x ) g ′ ( x ) − g ( x ) h′ ( x )
f ′ ( x) =
2
⎡⎣ h ( x )⎤⎦
• If y = f (u), where u = g(x), then y′ ( x ) = =
dx ⎜⎝ du ⎟⎜ ⎟
⎠⎝ dx ⎠
n n −1
• If y = ⎡⎣ g ( x )⎤⎦ , then y′ = n ⎣⎡ g ( x )⎦⎤ g ′ ( x ) .

Chain rule Product rule

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

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

162  TOPIC 8 APPLICATION OF DIFFERENTIATION
Similarly when differentiation is performed on y”, the third derivative is
d (3) y
y′′′ = f ′′′ ( x ) = is the third degree differentiation function with respect to x.
dx (3)
Subsequently, the higher-order derivative is
d (n) y
yn = f n ( x) = is the n-th degree differentiation function with respect to x.
dx (n)
Comprehensive understanding and ability in applying the rules of differentiation
together with the knowledge on demand and supply functions, will assist learners
in realising the applications of differentiation.
Learners are expected to appreciate the applications of differentiation in economic

and business fields, which involve calculating the functions of total costs, total
revenue and total profit. Differentiation method will determine how to minimise the
total costs function while the total revenue function and total profit function are
maximised.
8.1 SECOND AND THIRD DEGREE

DIFFERENTIATION
This topic will cover differentiation up to the third degree only. Application of the
rules of differentiation repeatedly will support the process of obtaining the required
level or degree of differentiation.
Example 8.1
Given y = 4x 3 − 12 x 2 + 6x + 2.
Derive y ′′ .
Solution:
y′ = 4 (3x 2 ) − 12 ( 2 x ) + 6
= 12 x 2 − 24 x + 6
y′′ = 12 ( 2 x ) − 24 (1)
= 24 x − 24

TOPIC 8 APPLICATION OF DIFFERENTIATION  163
Example 8.2
d (3) y
Determine (3)
given that y = 2 x −1 + x 2 + 1
dx
Solution:
dy
= 2 ( −1x −2 ) + 2 x
dx
= −2 x −2 + 2 x
d ( 2) y
= −2 ( −2 x −3 ) + 2
dx (2)
= 4 x −3 + 2
d (3) y
(3)
= 4 ( −3 x −4 )
dx
= −12 x −4
EXERCISE 8.1
1. Find the second degree differentiation for the given functions:
2
(a) y = 4 x 3 − 12 x 2 + 6 x + 2 (b) y=
x2
2. Find the third degree differentiation for the following functions:
(a) y = 4 x2 (b) y = 4 x 3 − 12 x 2 + 6 x + 24
(c) y = 2 x −1 + x 2 + 1

8.2 TOTAL COST FUNCTION (C)

Total cost function is the total cost required to produce x units of a product. In short,
it is the cost required to conduct a business.
There are two types of costs:
(a) Fixed Costs : Unchanged or unvaried costs although the number of

units of a product being produced varies. For example,
monthly rental of building.
(b) Variable Costs : The costs which depend on the number of units of a
product produced. For example, raw material and part-
time workers.
In general, the function for costs can be written as:
C (x) = Fixed Costs + Variable Costs

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

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

8.2.1 Average Total Cost Function (C )

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

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

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

⎛ 1 3⎞
= ⎜ x + ⎟ ( x)
⎝ 10 x⎠
1
= x2 + 3
10
1
(b) Ultimate cost, C′ ( x ) = (2x) + 0
10
1
= x
5
(c) The rate of change for cost is the ultimate cost, C '(x).
If four units of a product are produced, i.e. x = 4, then
1
C '(4) = (4)
5
4
=
5
Hence, the rate of change for cost when four units of product are produced is
RM0.80 per unit.
8.2.3 Minimising Total Cost

In business and economics, the cost is usually reduced (minimised) to obtain the
highest (maximised) production revenue and total profit.
Steps to minimise the cost function, C (x):
1. Find C '(x) and C ′′ ( x)
2. Let C '(x) = 0 and solve for x. Suppose x = a and a has to be positive.
3. If C ′′(a ) > 0 , then x = a is the quantity or level of production which

minimises the cost.

Example 8.6
If C (q ) = 0.01q 2 + 5q + 100 is the cost function.
(a) Obtain the average cost function.
(b) Determine the production level, q which minimises the average cost.
(c) What is the minimum value for the average cost?
Solution:
C (q)
(a) Average cost function, C ( q ) =
q
0.01q 2 + 5q + 100
=
q
100
= 0.01q + 5 +
q
(b) (i) Find C ′( q ) and C ′′( q ) .
dC
C′ (q) = = 0.01 − 100q −2
dq
d 2C
and C ′′ ( q ) = = 200q −3
dq 2
200
= 3
q
dC
(ii) When =0
dq
100
0.01 − 2 = 0
q
100
= 0.01
q2
q 2 = 10000
q = 100

(iii) Will q = 100 minimise the cost?
d 2C 200 d 2C 200
= , when q = 100, = >0
dq 2 q3 dq 2 1003
d 2C
Therefore > 0 , then C ( x) will have a minimum value when q = 100.
dq 2
100
(c) When q = 100, C ( q ) = 0.01q + 5 +
q
100
C (100 ) = 0.01(100 ) + 5 +
100
=7
EXERCISE 8.2
1. The production cost for one unit of a product is RM10 while its fixed
cost is RM5,000.
(a) Find the cost function.
(b) What is the total cost for producing 200 units of the above product?
(c) Derive the average cost function.
(d) Determine the ultimate total cost function.
2. Suppose the average total cost function is

100000
C (q ) = + 1500 + 0.2q
q
(a) Obtain the total cost function.
(b) Derive the marginal total cost function.
(c) Determine the rate of change for cost of producing 10 units of

the product.

q2
3. Given the total cost function is C ( q ) = + 3q + 400
4
(a) Find the average cost function.
(b) Derive the ultimate total cost function.
(c) What is the quantity which has to be produced so that the

average total cost is minimised?
4. Elyna Trading supplies sports attire to supermarkets in the north of

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

C = 2500 + 75q + 0.25q 2
(a) Find the average total cost function.
(b) What is the quantity which has to be produced so that the

average total cost is minimised?
(c) What is total cost at the production level which minimises the
average total cost?

8.3 TOTAL REVENUE FUNCTION (R )

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

= px
8.3.1 Average Total Revenue Function ( R )

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

Ultimate total revenue function is the rate of change of the total revenue over the
quantity of a product:
Ultimate Total Revenue Function = R’(x)
Example 8.7
The demand function of a product is given by p = −200q + 500.
(a) What is the total revenue function?
(b) Determine the ultimate total cost function.

Solution:
(a) Total revenue function, R(x) = Quantity × Price

= qp
= q (200q + 500)
= 200q2 + 500q
(b) Ultimate total revenue function, R′(x) = d/dq (R(x))

= 400q + 500
SELF-CHECK 8.1
What are the definitions for “ultimate” and “marginal?” What is the
significance of these two terms?
8.3.3 Maximising Revenue Functions

In business and economics, the total revenue is usually maximised to achieve the
maximum profit.
Steps to maximise the revenue function, R(x):
1. Find R′(x) and R′′(x).
2. Let R′(x) = 0 and solve for x. Suppose x = b and b has to be positive.
3. If R′′(b) < 0, then x = b is the quantity or level of production which

maximises the revenue.
Example 8.8
80 − q
The demand function of a product is given by p ( q ) = .
4
(a) Determine the quantity which maximises the total revenue.
(b) Obtain the price which maximises the total revenue.

Solution:
(a) Total revenue function, R(q) = Quantity × Price

= q ( p)
⎛ 80 − q ⎞
= q⎜
⎝ 4 ⎟⎠
q2
= 20q −
4
To maximise the total revenue, the ultimate total revenue function has to be
zero and R′′ ( q ) < 0 .
q 1
Ultimate total revenue function, R′ ( q ) = 20 − and R′′ ( q ) = −
2 2
q
When R’(q) = 0, then 20 − = 0
2
q
− = −20
2
q = 40
Does the value q = 40 maximise the revenue? Substitute q = 40 into R′′ ( q ) .
1 1
Observe that R′′ ( q ) = − , therefore R′′ ( 40) = − < 0 .
2 2
Therefore q = 40 is the quantity which maximises the total revenue.
80 − q
(b) Given p ( q ) = . At the quantity of q = 40,
4
80 − 40
p ( 40) =
4
= 10
Hence, the price has to be fixed at RM10 in order to maximise the revenue.

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

= (8000 − 20t )t
= 8000t – 20t 2
(b) R(t ) = 8000t – 20t 2

dR
= 8000 − 40t
dt
dR
When = 0 , then 8000 – 40t = 0
dt
– 40t = – 8000
t = 200
R′′ (t) = – 40
When t = 200, R ′′(200) < 0 then the total import tax which needs to be imposed
is RM200 to maximise the tax revenue.
(c) R(a) = 8000t – 20t2

= 8000(200) – 20(200)2
= 1600000 – 800000
= 800000
Therefore, the maximum tax revenue is RM800,000.

(d) D(t ) = 8000 – 20t

= 8000 – 20(200)
= 4,000
To reach the level of tax which maximises its revenue, 4,000 units of
electronic item have to be imported.
EXERCISE 8.3
1. The demand function of a health product is given by the function

p = 0.001q 2 + 840.
(a) Obtain the total revenue function.
(b) Derive the average total revenue function.
(c) Determine the marginal total revenue function.
2. Given the total demand function, p(x) = 2 – 0.01p, where p is the unit
price in RM and x is the quantity of the item.
(a) Find the total revenue function.
(b) Determine the price which maximises the total revenue.
3. Given the total revenue function, p(x) = 2 – 0.01p, where p is the unit
price in RM.
(a) Determine the price which maximises the total revenue.
(b) Calculate the maximum total revenue.

8.4 TOTAL PROFIT FUNCTION (Π)

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

= R(x) – C (x)
Example 8.10
The demand function for vehicle spare part items at ATSAS Enterprise is given by p =
400 – 2q and the average total cost per unit producing the item is given by a function
2000
C ( q ) = q + 160 + . Determine the total profit function for ATSAS Enterprise.
q
Solution:
2000
Given p = 400 – 2q and C ( q ) = q + 160 +
q
Total cost function, C ( q ) = ⎡⎣C ( q ) ⎤⎦ q
⎛ 2000 ⎞
= ⎜ q + 160 + q
⎝ q ⎟⎠
= q 2 + 160q + 2000
Total Profit = Total Revenue – Total Cost

= R(q) – C (q)
= pq – C (q)
= (400 – 2q ) q – ( q 2 +160q + 2000)
= –3q 2 + 240q – 2000

8.4.1 Average Total Profit Function ( ∏ )

The average total profit is the profit obtained from the production of a single unit
product.
∏ ( x)
∏ ( x) =
x
Example 8.11
Given, the demand function for a product is p(x) = 8 − 0.025x and the total cost
function is C(x) = 500 + 7x. Find the
(a) total revenue function;
(b) total profit function; and
(c) functions for the average total cost, average total revenue and average total
profit.
Solution:
(a) Total revenue function, R(x) = xp(x)

= x (8 – 0.025x)
= 8x – 0.025x 2
(b) Total profit function, ∏( x) = R( x) − C ( x)

= (8 x − 0.025 x 2 ) − (500 + 7 x )
= −0.025 x 2 + x − 500

C ( x)
(c) Average total cost function, C ( x ) =
x
500 + 7 x
=
x
500
= +7
x
R ( x)
Average total revenue, R ( x) =
x
8 x − 0.025 x 2
=
x
= 8 − 0.025 x
The demand function is also the average total revenue function.
∏ ( x)
Average total profit, ∏ ( x ) =
x
−0.025 x 2 + x − 500
=
x
500
= −0.025 x + 1 −
x
8.4.2 Ultimate Total Profit Function (Π’)

It is the rate of change of total profit over the quantity of a product.
∏′ ( x) = R′ ( x ) − C′ ( x)

Example 8.12
Suppose the total cost function, C (x) = 0.05x2 – 3x + 500 and the function for total
revenue is R( x) = 3x – 0.01x 2 . Obtain the:
(a) total profit function; and
(b) functions for the average total cost, average total revenue and average total
profit.
Solution:
(a) Total profit function, Π(x) = R(x) – C (x)

= (3x – 0.01x2 ) – (0.05x 2 – 3x + 500)
= – 0.06x 2 + 6x – 500
(b) Ultimate total cost function, C ' (x) = 0.05(2x) – 3

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

= 3 – 0.02x
Ultimate total profit function, Π '(x) = – 0.06(2x) + 6

= – 0.12x + 6
Or
Π '(x) = R '(x) – C '(x)

= (3 – 0.02x) – (0.10x – 3)
= – 0.12x + 6

8.4.3 Maximising Total Profit

As we all know, the purpose of having a business as well as of any economy is to
obtain maximum profit.
Steps to maximise profit:
1. Find ∏ ′( x ) and ∏′′( x) .
2. Let ∏ ′( x ) = 0 and solve for x. Suppose x = c and c has to be positive.
3. If ∏′′(c) < 0 , then x = c is the quantity or level of production which

maximises the profit.
Example 8.13
The demand equation for a travel agency company is p = 40 – 2q and its function
100
for average cost is given by C ( q ) = 4 + .
q
(a) Determine the total revenue function, R(q).
(b) Determine the total cost function, C (q).
(c) Determine the total profit function, Π(q).
(d) Calculate the price which will maximise profit. Show that the profit is
maximised.

Solution:
(a) R(q) = pq
= (40 – 2q) q
= 40q – 2q 2
C (q)
(b) C (q) = => C ( q ) = q ⎡⎣C ( q ) ⎤⎦
q
⎛ 100 ⎞
= q⎜ 4 +
⎝ q ⎠⎟
= 4q + 100
(c) Π(q) = R(q) – C (q)

= 40q – 2q 2 – (4q + 100)
= – 2q 2 + 36q – 100
d∏
(d) = −4q + 36
dq
d∏
When =0
dq
– 4q + 36 =0
4q = 36
q =9
d2 ∏
When q = 9, = −4 < 0.
dq 2
Substitute q = 9 into p, p(9) = 40 – 2(9)
= 22
Therefore, p = RM22 will maximise the profit.

EXERCISE 8.4
1. A company has an average total cost function of K = 4 + 100q −1 . The

demand equation for the company is given by the function
p = 54 – q, where p is the unit price (in RM) and q is the quantity (in units).
(b) Determine the cost function.
(c) Obtain the profit function.
(d) Find the price for which the company will maximise its profit,
by using differentiation method.
2. The demand function of a local product is p = 300 – x and the cost
function is C (x ) = 0.1x 2 + 14x + 100 .

(b) Derive the total profit function.
(c) Determine the quantity which maximises the profit.
(d) Calculate the price at which the profit is maximised.
(e) Find the value of the maximum profit.
3. The demand function for a product based on recycle material is given
2
by p = x 2 − 5 x + 16 and the average total cost function is
3
1 2 5
C ( x) = x − 2x +
3 x
(b) Derive the total revenue function.
(c) Determine the total profit function.
(d) Calculate the quantity which maximises the profit.
(e) Find the value of the maximum profit.

ACTIVITY 8.1
Can fixed cost be a variable? Why?

1. Given that f(x) = −3x2 + 12x − 9.
(a) What is the critical point?
A. (−6, −189) B. (−6, −24) C. (2,0) D. (2, 3)
(b) Determine the nature of its critical point.
A. Minimum point B. Maximum point
C. Inflection point D. No conclusion
2. Given that C(x) = 0.05x2 − 3x + 500 and R(x) = 3x − 0.01x2.
(a) What is the total profit function?
A. −0.06 x 2 + 6 x − 500 B. 3x − 0.01x 2
C. 0.05 x 2 − 3x + 500 D. 0.06 x 2 + 500
(b) What is the marginal profit function?
A. 0.10 x − 3 B. 3 − 0.02x
C. −0.12 x + 6 D. −0.06 x 2 + 6 x − 500

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

economic and business world are:
Total cost C
− Average cost = , C= .
Quantity q
dC
− Ultimate/Marginal cost = Rate of change for cost, C ′ = .
dq
Total revenue
− Average revenue = ,R= R .
Quantity q
dR
− Ultimate/Marginal revenue = Rate of change, R′ = .
dq
Total profit
− Average profit = , ∏=∏ .
Quantity q
d∏
− Ultimate/Marginal profit = Rate of change for profit, ∏′ = .
dq
Average total cost function Marginal/Ultimate total profit function

Average total profit function Marginal/Ultimate total revenue function
Average total revenue function Second and third degree differentiation
Marginal/Ultimate total cost function tests
Kindfather, W. L., & Parish, W. A. (2003). Business mathematics. Upper Saddle

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

TOPIC 9 INTEGRATION  185
The notation for integration:
∫ f ( x) dx = F' ( x ) + c
where
∫ : Integral sign c : The constant of integral
f (x) : Integrand F'(x) : Anti-derivative
Consider the following derivatives:

d 2 d 2 d 2
(a)
dx
( x ) = 2x (b)
dx
( x + 4) = 2 x (c)
dx
( x − 100) = 2 x
Therefore, 2x is not the only derivative of x 2 but also a derivative of x 2 + 4 and

x 2 − 100 . Thus, by having an arbitrary number c to represent all the different
numbers, x 2 + c is the anti-derivative of 2x and is written as ∫ 2 x dx = x 2 + c.
Integration of a function f (x) is therefore F (x) + c and the process of finding F ( x )
is called integration.
The following rules are derived from reversing the process and can be applied to
solve integration problems.
Integration Rules
1. ∫ k dx = kx + c, k is a constant
x n +1
2. ∫ x dx = + c , n ≠ −1
n
n +1
Special case (when n = −1)
1
∫x
−1
dx = ∫ dx = ln x + c
x
3. ∫ k f ( x) dx = k ∫ f ( x) dx , k is a constant

186  TOPIC 9 INTEGRATION
4. ∫ ( f ( x) + g ( x)) dx = ∫ f ( x) dx + ∫ g ( x) dx
5. ∫ ( f ( x) − g ( x)) dx = ∫ f ( x) dx − ∫ g ( x) dx
6. ∫e
x
dx = e x + c
ek x
7. ∫ e dx = + c , k is a constant
kx
Example 9.1: Applying Rule 1
(a) ∫1dx = x+c
(b) ∫ 5dx = 5 x + c
(c) ∫100dx = 100x + c
(d) ∫ π dx = π x + c
(e) ∫ e dx = ex + c
Example 9.2: Applying Rule 2
x2
(a) ∫ x dx = ∫ x dx = +c
1
x3+1 x4
(b) ∫ x dx =
3
+c= +c
3 +1 4
3
1
x 2 2 32
(c) ∫ x dx = ∫ x dx = 2
= x +c
3 3
2

1 x −2 1
(d) ∫x dx = ∫ x −3 dx = +c= +c
3
−2 −2 x 2
1
(e) ∫ xdx = ln x + c
Example 9.3: Applying Rules 3, 4 and 5
(a) ∫ 3x dx = 3∫ x dx (Take the constant out as stated in Rule 3)

3 3
x3+1 x4
3 +c =3 +c
3 +1 4
1 1 1 1
(b) ∫ 5xdx = 5 ∫ xdx = 5 ln x + c (Take the constant out as stated in Rule 3)
(c) ∫ (3 x + 1) dx = ∫ 3x3 dx + ∫1dx (Applying Rule 4)

3
3 4
x + x+c
4
(d) ∫ (2 x − x 2 ) dx = ∫ 2 x5 dx − ∫ x 2 dx (Applying Rule 5)

5
2 6 1 3 1 1
x − x + c = x6 − x3 + c
6 3 3 3
(e) ∫ ( 2 x − x)( x + 1) dx
∫ (2 x + x − 1) dx (Expand first as there is no rule for product integration)
2
= ∫ 2 x 2 dx + ∫ x dx − ∫1dx (Expand using Rule 3 and 4)
x3 x 2
=2 + − x + c (Integrate one at a time)
3 2

(f) ∫ x ( x 2 + 1) dx
1
⎛ 5 1
⎞
= ∫ x 2 ( x 2 + 1) dx = ∫ ⎜ x 2 + x 2 ⎟ (Expand dx first)
⎝ ⎠
5 1
= ∫ x 2 dx + ∫ x 2 dx
5 1
+1 +1
x2 x2
= + + c (Integrate one at a time)
5 1
+1 +1
2 2
7 3 7 3
x2 x2 2x 2 2x 2
= + +c= + c
7 3 7 3
2 2
x4 − x2
(g) ∫ x4 dx
1
= ∫1 − dx (Simplify the expression as there is no rule for division integration)
x2
1
= ∫1dx − ∫ x −2 dx (We change as x −2 )
x2
x −2+1
= x− +c
−2 + 1
x −1 1
= x− +c= x+ +c
−1 x
Example 9.4: Applying Rules 6 and 7

x
x
(a) ∫ e dx = e +c
2x e2 x
(b) ∫ e dx = 2
+c

100 x e100 x
(c) ∫e dx = +c
100
x
x x
e2
(d) ∫ e 2
dx = + c = 2e 2
+c
1
2
2− 4 x 4e 2− 4 x
(e) ∫ 4e dx = + c = −e 2 − 4 x + c
−4
ACTIVITY 9.1
The inverse of differentiation is integration. Is there a mathematical

process that does not involve an inverse?

EXERCISE 9.1
Integrate each of the following:
1. ∫ π dx 2. ∫ edx
3 2
3. ∫ 8 p dx 4. ∫ ex dx
1
⎛ −3 ⎞
∫ (u + 3u ) du x + x − 3 x + x 2 ⎟ dx
3 −2 4
5. 6. ∫⎝
⎜
⎠
⎛ x5 + 2 x 2 − 1 ⎞
∫ x (1 + x ) dx ∫ ⎜⎝ x4 ⎟⎠ dx
3
7. 8.
−0.07t 3s + 4
9. ∫e dt 10. ∫e ds
11. (1 + x ) ( 2 − x ) dx
2
12.
⎛4 x x ⎞
∫ x 3 ∫ ⎜⎝ x + 4 + e ⎟ dx
⎠
9.2 DEFINITE INTEGRALS
Suppose f (x) is a function which is defined between interval [a, b] and F (x)
is the anti-differentiation for f (x). The definite integrals for f (x) between
interval [a, b] is given by:
b b
∫ f ( x ) dx = ⎡⎣ F ( x )⎤⎦
a a
= F (b ) − F ( a )
where a is the lower limit and b is the upper limit of the integration.

Example 9.5
3 3
∫1 x dx
Solution:
3
3 ⎡ x4 ⎤ ⎡ 34 14 ⎤
∫ x dx = ⎢ ⎥
3
=⎢ − ⎥
1
⎣ 4 ⎦1 ⎣ 4 4⎦
⎡ 81 1 ⎤ 80
=⎢ − ⎥ = = 20
⎣ 4 4 ⎦ 4
Example 9.6
1
∫ e2 x dx
0
Solution:
1
1 ⎡ e2 x ⎤ e 2(1) e2(0)
∫ 0 e dx = ⎢⎣ 2 ⎥⎦ = 2 − 2
2x
e2 e0 e2 1
= − = −
2 2 2 2
Example 9.7
e 1
∫ dx
1 x
Solution:
= [ln x ]1 = ln e − ln1 = 1 − 0 = 1
e

RULES OF DEFINITE INTEGRALS
Suppose ∫ f dx and ∫ g dx are defined between interval (a, b) where a, b

and c are constants. Hence:
b b
1. ∫ cf ( x ) dx = c ∫ f ( x ) dx ;
a a
∫ ( f ( x ) + g ( x )) dx = ∫ f ( x ) dx + ∫ g ( x ) dx;
b b b
2. a a a
and
∫ ( f ( x ) − g ( x )) dx = ∫ f ( x ) dx − ∫ g ( x ) dx
b b b
3. a a a
Example 9.8
3
∫ 1
3x3 dx
Solution:
3
3 ⎡ x4 ⎤ ⎛ 34 1 ⎞ ⎛ 81 1 ⎞
∫1 3x dx =3 ⎢
3
⎥ = 3 ⎜ − ⎟ = 3⎜ − ⎟
⎣ 4 ⎦1 ⎝ 4 4⎠ ⎝ 4 4⎠
⎛ 80 ⎞
= 3 ⎜ ⎟ = 3 ( 20) = 60
⎝ 4⎠
Example 9.9
e ⎛1 ⎞
∫ ⎜⎝ − 2 x⎟⎠ dx
1 x

Solution:
e ⎛1 ⎞ e1 e
∫ ⎜⎝ − 2 x⎟⎠ dx = ∫1 dx − ∫1 2 x dx
1 x x
e
= [ln x ]1 − ⎣⎡ x 2 ⎦⎤
e
1
= [ln e − ln1] − ⎡⎣ e 2 − 1⎤⎦

= [1 − 0] − ⎣⎡ e2 − 1⎦⎤
= 2 − e2
ACTIVITY 9.2
What is the term given to the values of a and b for the interval [a, b]?
EXERCISE 9.2
Find the values of the following integrations:
∫ x (1 + x ) dx
3 2
3
1. ∫ 2
x3 dx 2. −1
2 2 ⎡1 2 −4 ⎤
3. ∫ 1
(t 2 − 2t + 8)dt 4. ∫ 1 ⎢ x3 − x 2 + x ⎥ dx
⎣ ⎦
9 4
5. ∫ ⎡ 2 y y ⎤dy
⎣ ⎦ 6. ∫ e5 dx
4 1
8 ⎡4⎤ 4 ⎡ x + 1⎤
7. ∫ 1 ⎢ y⎥
dy 8. ∫ 1 ⎢ ⎥dx
⎣ ⎦ ⎣ x ⎦

9.3 INTEGRATION BY SUBSTITUTION

Integration by substitution is one of the techniques used to integrate functions that
are more complex. It involves changing the basic variable (usually x) to another
variable (usually u). The relationship between these two variables must be
specified. Once the variable changes, the integration will be easier to handle.
Example 9.10
∫ 2x x 2 + 1 dx
Solution:
Step 1: Identify u and du
When u = g(x), u is assumed to be without power. Therefore, u = x2 + 1

and hence, du = 2x dx
Step 2: Substitute the integration from x to u
1 1 1
∫ 2 x ( x + 1) 2 dx = ∫ ( x + 1) 2 2 x dx = ∫ u 2 du
2 2
Step 3: Integrate with respect to u
1
2 32
∫ u 2
du = u +c
3
Step 4: Substitute back the u to x

3
2 2
=
3
( x + 1) 2 + c
Example 9.11
x
∫ dx
x +3
2

Solution:

1
u = x2 + 3 du = 2 x dx ∴ x dx = du
2
1
x du 1
= ∫ 2 1 = ∫ u 2 du
− 1
∫ dx
x2 + 3 2
u2
1 − 12
Step 3: Integrate u du with respect to u
2∫
⎛ 1 ⎞
1
1 ⎜ u2 ⎟
= ⎜ ⎟ + c = u2 + c
2 1
⎜⎝ ⎟⎠
2

1
(x 3
+ 3) 2 + c
Example 9.12
ln x
∫ dx
x
Solution:
dx
u = ln x, du =
x

dx
∫ ln x = u du
x ∫
u2
+c
2
(ln x )
2
+c
2
Example 9.13
x
∫x 2
dx
+1
Solution:
du
u = x2 + 1 du = 2 x dx ∴ = x dx
2
du
x x dx 1 du
∫ x 2 + 1 dx = ∫ x2 + 1 = ∫ u2 = 2 ∫ u
1
ln u + c
2

1
ln ( x 2 + 1) + c
2
ACTIVITY 9.3
1. What does it take to become an expert in recognising the u and du?
2. Visit http://www.sosmath.com/calculus/calculus.html for more

examples on integration by substitution.
EXERCISE 9.3
Integrate the following:
3x
∫ (t − 2)(t 4 − 8t + 2 ) dx
3
∫ dx
1. 2. 4 x2 + 5
x2 + x
dx
3. ∫e
x
( )
e x + 2 dx 4.
∫
( 4 − 3x 2
− 2 x3 )
4
s x +1
∫ ds dx
5. 3
1 − 2s 2 6. ∫x 2
+ 2x + 1

EXERCISE 9.4
Choose the correct answer.
x
1. ∫ dx
x
x2 2 2
3
2 12 3 32
A. 3
+c B. x +c C. x +c D. x +c
x 2 3 3 2
3
2. ∫e 5x
dx
5 3 −5 x +1 3 4
A. − e−5 x + c B. − e +c C. − e−5 x + c D. − e −5 x + c
3 5x + 1 5 5
−3x 2
3. ∫ (− x3 + 8)2 dx
1 x3 1 x 3
A. − +c B. − +c C. + c D. − +c
8 − x3 (8 − x3 )3 8 − x3 3(8 − x3 )3
∫ 3x ( x3 − 5) 20 dx
2
4.
( x 3 − 5) 21 x 3 ( x 3 − 5) 21
A. +c B. +c
21 21
( x 3 − 5) 21 x 3 ( x 4 − 5) 21
C. +c D. +c
63 21
3
1
5. ∫ 6 x − 3dx
1
1 1 1 1
A. B. In 6 C. − D. ln 6
15 15 −2 6

• Integration may be applied in order to determine the function given by its rate of
change.
• Basic integration rules include the following:
− ∫ k dx = kx + c, k is a constant
x n +1
− ∫ x dx =
n
+ c , n ≠ −1
n +1
Special case when n = −1:
1
∫x
−1
dx = ∫ dx = ln x + c
x
− ∫k f ( x) dx = k ∫ f ( x) dx , k is a constant
− ∫ ( f ( x) + g ( x)) dx = ∫ f ( x) dx + ∫ g ( x) dx
− ∫ ( f ( x) − g ( x)) dx = ∫ f ( x) dx − ∫ g ( x) dx
− ∫e
x
dx = e x + c
ek x
− ∫ e dx =
kx
+ c , k is a constant
k
• Integration by substitution is one of the techniques used to integrate functions

that are more complex.

Definite integrals Integration by substitution
Hoffmann, L. D., & Bradley, G. L. (2000). Calculus for business, economics, life sciences,
and social sciences. Boston, MA: McGraw-Hill.

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

202  TOPIC 10 APPLICATIONS OF INTEGRATION
10.1 CALCULATING THE AREA UNDER A

GRAPH
Suppose f (x) is continuous and that f (x) ≥ 0 in the interval [a, b]. As such,
the area under the graph f (x) and above the x-axis from x = a to x = b is
b
A = ∫ a f ( x ) dx .
Geometrically, we have the graph as illustrated in Figure 10.1.
Figure 10.1
Example 10.1
Calculate the area under y = 2x from x = 0 to x = 2.
Solution:
Figure 10.2
Figure 10.2 shows the graph y = 2x is always above the x-axis when x is positive.
Therefore, the area A is:
2 2
∫ 0
2 x dx = ⎡⎣ x 2 ⎤⎦ 0 = 4 − 0 = 4 unit 2

TOPIC 10 APPLICATIONS OF INTEGRATION  203
Suppose f (x) and g (x) are continuous in the interval [a, b] where f (x) ≥ g (x).
In other words, f (x) is always above g (x). As such, the area between the graphs
f (x) and g (x) in the interval [a, b] is given by:
b
A = ∫ ⎡⎣ f ( x ) − g ( x )⎤⎦ dx
a
Figure 10.3
Example 10.2
Calculate the area between graphs y = x 2 and y = x.
Solution:
Step 1: Sketch the graphs to determine which graph is above and which graph is
below.
Figure 10.4

Step 2: Obtain the intersection points between graphs y = x2 and y = x

x2 = x
x2 − x = 0
x ( x − 1) = 0 ⇒ x = 0 and 1
∴ (0,0) and (1,1) are the intersection points.
Step 3: Determine the function above and the function below.
fa = Function above
fb = Function below
Function above minus function below: x − x2
Step 4: Determine the integration and obtain its value.

1
⎡ x 2 x3 ⎤ 1 1 1
( )
1
2 2
∫0 x − x dx = ⎢ − ⎥ = − = unit
⎣ 2 3 ⎦0 2 3 6
Example 10.3
Calculate the area between graphs y = 2 – x 2 and y = – 2x – 1
Solution:
Step 1: Sketch the two graphs.
Figure 10.5

Step 2: Obtain the intersection points between graphs y = 2 – x2 and y = – 2x – 1
2 − x 2 = −2 x − 1
x2 − 2x − 3 = 0
( x − 3)( x + 1) = 0 ⇒ x = 3, − 1
∴ (–1, 1) and (3, –7) are the intersection points.
Step 3: Determine the function above and function below. The graph above minus
the graph below ⇒ (2 – x 2 ) – (– 2x – 1) = 3 + 2x – x 2
Step 4: Determine the integration and obtain its value.
3
x3 ⎤
( )
3 ⎡
∫ −1 3 + 2 x + x
2
dx = ⎢ 3 x + x 2
−
⎣ 3 ⎥⎦ −1
⎡ 1⎤ 2
= [9 + 9 + 9] − ⎢ −3 + 1 + ⎥ = 10
⎣ 3⎦ 3
ACTIVITY 10.1
1. What is the purpose of calculating an area under a graph?

Explain.
2. What will you obtain if you integrate the interval [−3,3] into the
function y = 1? Explain.

EXERCISE 10.1
Calculate the area above or below for the following graphs:
1. y = x 2 – 1; x = –1 to x = 1 2. y = 3x 2 + 1; x = –1 to x = 2
3. y = 9 – x 2 ; between [–2, 1] 4. y = 2x + x 2 ; between [0, 3]
Calculate the area between the followings two curves:
1. y = 2x + 4 and y = x 2 + 2x + 3
2. y = 2x – 5 and y = – x 2 + 6x – 5
3. y + x = 6 and y = x 2 + 4
4. y= x and y = x
10.2 APPLICATION OF INTEGRATION IN

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

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

ACTIVITY 10.2
What is meant by ideal competition? Does a non-ideal competition
exist?
(a) Consumer Surplus

Some consumers are willing to pay more than the equilibrium price. The area
A represents the consumer surplus. It is the total profit gained from the
consumers’ willingness to pay more than the market equilibrium price.
Figure 10.6
From Subtopic 8.1, we noticed that consumer surplus can be found by finding
the areas between the two graph.
Consumer surplus, qe
A= ∫[
D(q )
0

− Pe ] dq

↑
↑ The graph below
The graph above
qe
or in simpler form, A = ∫ D (q)dq − Pe qe
0
  
↑
↑ Area of
Area under the rectangle
curve D ( q )

(b) Producer Surplus

On the other hand, some suppliers would offer the product at a price below
the equilibrium price, so that they can gain from the equilibrium price. The
total supplier gain is called producer surplus and is represented by the area B.
qe
Producer surplus, B= ∫[
0
p e − S (q)] dq
 
↑ ↑
Graph above Graph below
the straight line
qe
or in simpler form, B= pq − S (q)dq
ee ∫
0

↑ ↑
Area of the rectangle Area under the graph below
Example 10.4
Given that the demand function and the supply function for a company are
p = 200 – q 2 and p = 6q + 160 respectively, determine the consumer and producer
surpluses for the company.
Solution:
Sketch the graph in the first quadrant only.
Figure 10.7

To obtain the market equilibrium point, we can equate the two functions as follow:
6q + 160 = 200 − q 2 p = 200 + q 2

q 2 + 6q − 40 = 0 = 200 − 16
( q + 10)( q − 4) = 0 = 184
q = −10 and q = 4
Hence, the market equilibrium point is (4, 184).
Consumer surplus: CS = ∫ ( 200 − q 2 ) dq − ( 4)(184)

4
0
4
⎡⎛ q3 ⎞ ⎤
= ⎢ ⎜ 200q − ⎟ ⎥ − 736
⎣⎝ 3 ⎠ ⎦0
4
( 4) ⎞ ⎤⎥ − 736
3
⎡⎛
= ⎢⎜ 200q − ⎟
⎢⎣⎝ 3 ⎠⎥
⎦0
128
=
3
4
Producer surplus: PS = ( 4 )(184) − ∫ 0 (6q − 600 ) dq
= 736 − ⎡⎣ (3q 2 + 160q ) ⎤⎦

4
= 736 − [ 48 + 640]
= 48
ACTIVITY 10.3
Why would a consumer be willing to pay a higher price than the market
equilibrium price?
Example 10.5
The demand and supply functions for a company are ps = 1 + q and pd = 49 − 6 q

respectively. Determine the consumer surplus and the producer surplus for the
company.

Solution:
Obtain the market equilibrium point.
pd = ps
49 − 6q = 1 + q
49 − 6q = (1 + q )
2
49 − 6q = 1 + 2q + q 2
0 = q 2 + 2q + 1 − ( 49 − 6q )
0 = q 2 + 8q − 48
0 = ( q − 4)( q + 12)
We will only consider the point q = 4. Therefore, p = 1 + q = 1 + 4 = 5
Hence, the market equilibrium point is (4,5).
Note: The value q = 4 is the integration limit.
Figure 10.8

4
Consumer surplus: ∫ 0
D ( q ) dq − ( 4)(5)
4
∫ 0
49 − 6q dq − 20
u = 49 − 6q u = 49 − 6(4) = 25
du = −6 dq u = 49 − 0 = 49
du
= dq
−6
49
⎡ 3⎤
1 1
49 du 1 49 1 ⎢u2 ⎥
u
∫ 25 −6 2
− 20 = − u 2
du − 20 = ⎢ ⎥ − 20
6 ∫ 25 6⎢ 3 ⎥
⎣ 2 ⎦ 25
1 ⎛ 3⎞ 1
( ) ( )
3 3
= ⎜ ⎟⎡ 49 − 25 ⎥⎤ − 20 = ⎣⎡ 73 − 53 ⎦⎤ − 20
6 ⎝ 2 ⎠ ⎣⎢ ⎦ 9
218 38
= − 20 =
9 9
Producer surplus: pe qe − ∫ S ( q ) dq
4
= ( 4)(5) − ∫ (1 + q ) dq
0
4
⎡ q2 ⎤ ⎡ 16 ⎤
= 20 − ⎢ q + ⎥ = 20 − ⎢ 4 + ⎥ = 20 − 12 = 8
⎣ 2 ⎦0 ⎣ 2⎦
ACTIVITY 10.4
Which is better, a situation where there is consumer surplus or producer
surplus?
10.2.2 Finding the Function from its Marginal Function

Previously, when the cost, revenue and profit functions are given, we will be asked
to find the marginal functions, namely marginal cost, marginal revenue and
marginal profit functions respectively. However, in this topic, with a given marginal
function, we will be asked to find the cost, the revenue and the profit functions. This
can be done by integrating the corresponding marginal functions.

Example 10.6
Suppose that the marginal cost function of a company which produces x thousand
50
units of books is given by C ′ ( x ) = while its fixed cost is RM25,000.
x
(b) Determine the incremental total cost for an increase in production from 100
to 121 units.
Solution:
(a) Given the marginal cost function, we need to integrate the marginal cost
function to obtain the cost function.
C ( x ) = ∫ C ′ ( x ) dx
1
1 1 1
50 − x2
=∫ dx = ∫ 50 x 2 dx = 50 + c = 50 ( 2) x 2 + c = 100 x 2 + c
x 1
2
The fixed cost is given as RM25,000. In other words, the cost is RM25,000
when x = 0
Solve C (0) = 25000
1
Therefore, 100x 2 + c = 25000
100(0) + c = 25000
c = 25000
1
Hence, C (x) = 100x 2 + 25000

121
(b) ∫ 100
C ′ ( x ) dx
= C (121) − C (100)
= ⎣⎡100 121 + 25000⎦⎤ − ⎡⎣100 100 + 25000⎤⎦
= ⎡⎣100 (11) + 25000⎤⎦ − ⎡⎣100 (10) + 25000⎤⎦
= 100
Thus, the required incremental cost is RM100.
Example 10.7
Suppose that a company’s marginal cost function is given by C ′(x) = 2 x 3 + 6 x – 5

and its fixed cost is RM8,000. Calculate the company’s cost function.
Solution:
Given the marginal cost function C′(x) = 2x3 + 6x − 5, we integrate to get its cost
function.
C ( x ) = ∫ C ' ( x ) dx
= ∫ 2 x 3 + 6 x − 5 dx
2 x4 6 x2
= + − 5x + c
4 2
x4
C ( x ) = + 3 x 2 − 5 x + c since C(0) = 8000
2
C (0) = 0 + 0 − 0 + c
8000 = c
x4
Therefore, the cost function is C ( x) = + 3 x 2 − 5 x + 8000
2
Example 10.8
A furniture factory has a marginal cost function of C ' ( x ) = 3 x − 15 and marginal

revenue function of R ' ( x ) = 150 − 3 x with x being the quantity produced. The fixed
cost for the factory is RM8,000. Determine the:

(a) Revenue function
(b) Demand function
(c) Total cost function
(d) Profit function
Solution:
(a) R( x) = ∫ R′( x)dx = ∫ (150 − 3 x)dx

3x 2
= 150 x – +C
2
3x 2
=150 x – → R(0) = 0
2
(b) The demand function is p = f ( x ) and can be obtained from the revenue
function. R = p.x
R
Therefore p=
x
3x 2
150 x −
R 2 = 150 − 3x
p= =
x x 2
3x
Therefore, the demand function is p= 150 −
2
(c) C ( x) = ∫ C ′( x)dx = ∫ 3x − 15dx

3x 2
= − 15 x + C
2
3x 2
= − 15 x + 8000 → C (0) = 8000
2
(d) P( x) = R( x) − C ( x)
⎛ 3x 2 ⎞ 3x 2
= ⎜150 x − ⎟−( − 15 x + 8000)
⎝ 2 ⎠ 2
= 165 x – 3 x 2 − 8000

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

bags is given by C '(q) = 0.003q 2 – 0.03q , where q is the number of
school bags produced. The company’s fixed cost is RM176.
(b) Determine the incremental total cost when production

increased from 260 to 400 units.
1000
2. The marginal revenue function of a factory is R ′ = . If R is
100q
the revenue in RM, determine the change or increment in revenue
when sales increased from 400 to 900 units.
3. A furniture factory has a marginal cost function of C ' ( x ) = 3 x − 15

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

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

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

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

p = 0. 01q2 − 1.1q + 30 and p = 0.01q2 + 8 respectively. Determine
the consumer surplus and the producer surplus.

EXERCISE 10.3
Choose the correct answer.
1. Find the area of the region enclosed by y = 4x 2 , x–axis, x = – 4 and

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

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

S ( x) = 6 x + 160
3. Determine the equilibrium point.
A. x = 4, y = 184 B. x = 184, y = 4
C. x = – 4, y = 184 D. x =184, y = –4
4. Determine the consumer surplus.
A. 872 B. 48 C. 128/3 D. 248
5. Determine the producer surplus.
A. 48 B. 248 C. 148 D. 872

• Integration is the inverse of differentiation.
• The application of integration is not only limited to finding the area of a region
but it can also be applied to many business and economic problems.
Consumer surplus Producer surplus
Hoffmann, L. D., & Bradley, G. L. (2000). Calculus for business, economics, life sciences,
and social sciences. Boston, MA: McGraw-Hill.

218  ANSWERS
Answers
TOPIC 1: CONCEPTS IN ALGEBRA
Exercise 1.1
3 1 3 2
1. (a) + (b) −
4( x + 2) 4( x − 2) x x +1
1 1
(c) 1+ −
2( x − 1) 2( x + 1)
3 6 9
2. − +
2( x − 1) x − 2 2( x − 3)
x−2 1
3. 2
−
2( x − 2) 2( x + 4)

ANSWERS  219
TOPIC 2: LINEAR AND QUADRATIC

FUNCTIONS
Exercise 2.1
1
1. (a) m = , c = −1 (b) m = −5, c = −5
2
−2 5
(c) m = −3, c = 0 (d) m= , c=
3 3
2. y = −x + 5
3. 3y = 8x − 4
4. 2y + x = 4
5. 3y + x + 3 = 0
Exercise 2.2
(a) (b)
(c)

220  ANSWERS
Exercise 2.3
(a) The parabola opens upward.
The turning point is (3, – 4).
The y-intercept is (0, 5).
The x-intercepts are (1, 0) and (5, 0).
(b) The parabola opens upward.

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

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

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

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

ANSWERS  221
Multiple-choice Questions
1. C 2. B 3. C 4. A 5. A
TOPIC 3: APPLICATION OF LINEAR AND

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

222  ANSWERS
1. D 2. A 3. C 4. D 5. C
TOPIC 4: MATRIX
Exercise 4.1
1. (a) 3×2 (b) 1× 3 (c) 3×1
2. a≠0
3. No. Identity matrix only exists for square matrix.
4. (a) Zero Matrix (Null)
(b) Column Matrix
(c) Row Matrix
Exercise 4.2
⎡ −6 3 9⎤
1. (a) ⎢ ⎥
⎣12 0 3⎦
⎡2 2 1⎤
(b) ⎢ ⎥
⎣9 −1 4⎦
⎡6 −3⎤
⎢ ⎥
(c) ⎢ −3 1⎥
⎢ −2 5 ⎥⎦
⎣
(d) Not possible
⎡ −130 140 ⎤
(e) ⎢ ⎥
⎣ 110 −60⎦

ANSWERS  223
⎡ 27 −35⎤
(f) ⎢ ⎥
⎣ −4 26 ⎦
⎡ 20 −2 −2⎤
⎢ ⎥
(g) ⎢ −2 1 3⎥
⎢ −2 3 10 ⎥⎦
⎣
⎡ −2 −1⎤
2. A=⎢ ⎥
⎣5 2⎦
Exercise 4.3
1. (a) 11
(b) a2 + b2
(c) −27
(d) 27
2. (a) 1
(b) The determinant does not exist.
Exercise 4.4
⎡1 2⎤
⎢7 − ⎥
7
1. (a) ⎢ ⎥
⎢1 3 ⎥
⎢⎣ 7 14 ⎥⎦
⎡2 −11 −3⎤
⎢ ⎥
(b) ⎢1 −6 −2⎥
⎢0
⎣ −1 0 ⎥⎦
(c) Does not exist

224  ANSWERS
⎡ 13 7 1⎤
⎢ − 10 5 2⎥
⎢ ⎥
⎢ 2 1
(d) ⎢ 5 − 0 ⎥⎥
5
⎢ ⎥
⎢ 7 3 1⎥
⎢⎣ − 10 5 2 ⎥⎦
⎡ 5 3⎤
− − ⎥
2. A =⎢ 2
−1
2
⎢ ⎥
⎣⎢ 2 1 ⎦⎥
1 ⎡ d −b ⎤
3. (a) B −1 = ⎢ ⎥
ad − bc ⎣ −c a ⎦
(b) ad – bc ≠ 0
Exercise 4.5
24 23
1. and 2. (a) x = , y=
5 5
(b) x = −1, y = 3, z = 2
2 10 60
(3) (a) x=− , y=− , z=−
17 17 17
(b) x = 1, y = 0, z = −5
1. (a) B (b) D 2. D 3. C 4. D

ANSWERS  225
TOPIC 5: EXPONENTIAL AND LOGARITHMIC

FUNCTIONS
Exercise 5.1
1
(a) (b) 1 (c) 3
27
1
(d) (e) 125 (f) 8
4
Exercise 5.2
(a) −2 (b) −3 (c) 1
1
(d) (e) 2 (f) −1
4
Exercise 5.3
1. (a) 52 = 25 (b) 2x = y (c) 10−1 = 0.1
1
2. (a) log10 100 = 2 (b) 10ga 1 = 0 (c) log2 = −3
8
1
3. (a) 4 (b) (c) 1
3
(d) −1 (e) 2 (f) −4
1
4. (a) (b) 3 (c) 3
2
(d) 4 (e) 20 (f) 20

226  ANSWERS
Exercise 5.4
1. (a) 55 years
(b) 97,045 people
2. (a) RM6,016.61
(b) RM14,693.28
(c) RM11,373.99
(d) RM2,354.99
3. (a) RM15,000
(b) RM10,000
(c) RM6,000
(d) RM25,000
1. B 2. D 3. B 4. A 5. C
TOPIC 7: DIFFERENTIATION
Exercise 7.1
(a) 0 (b) 0
(c) 0 (d) 0
(e) 7x 6 (f) 5x 4
5 8
2 − 3 −
(g) − r 3
(h) − t 5
3 5
5 14 5 32
(i) x (j) x
4 2

ANSWERS  227
3
−3
(k) x4 (l) + 10 x
x2
1
(m) 3 (n) −
4
(o) 2x + 4 (p) 10x3
4
(1 − 2 x ) ( −10 − 7 x )
3
(q) 8x + (r)
x2
− x2 − 2 x + 2
( x + 1) (10 x − 2)
3
(s) (t)
(x + 2)
2 2
2 x ( 2 x3 + 6 x − 1)
(u) (v) 4(2x – 1)
(x + 1)
2 2
(3x2 − 2 x + 1)
−
(w) 10 x(x 2 + 4)4 (x) 2
(3x − 1)
2
2x − 5 ⎛ 2x + 2⎞ ⎛ 4 ⎞
(y) (z) 3⎜ ⎜ ⎟
2 x2 − 5x ⎝ x + 3 ⎟⎠ ⎝ ( x + 3) 2 ⎠
1. D 2. D 3. A 4. B 5. C

228  ANSWERS
TOPIC 8: APPLICATION OF DIFFERENTIATION

Exercise 8.1
12
1. (a) 24 x − 24 (b)
x4
2. (a) 0 (b) 24 (c) −12x − 4
Exercise 8.2
1. (a) 10x + 5,000 (b) RM7,000
5,000
(c) 10 + (d) 10
x
2. (a) 100, 000 + 1,500q + 0.2q 2 (b) 1,500+ 0.4q
(c) 1,504
q 400 1 400
3. (a) +3+ (b) −
4 q 4 q2
(c) 40 units
4. (a) 10 dozens (b) RM203,000
2,500
5. (a) 75 + 0.25q (b) 100
q
(c) RM12,500

ANSWERS  229
Exercise 8.3
1. (a) 0.01q 3 + 840 (b) 0.01q 2 + 840
(c) 0.003q 2 + 840
2. (a) 2 x – 0.1x 2 (b) RM1,000
3. (a) RM200 (b) RM400
Exercise 8.4
1. (a) R(q ) = 54q – q 2 (b) K(q) = 4q + 100
(c) ∏ ( q ) = −q 2 + 50q − 100 (d) RM29
2. (a) 300x – x 2 (b) –1.1x 2 + 286 x – 100
(c) 130 (d) RM170
(e) RM18,490
1 3 2 3
3. (a) x − 2x2 + 5 (b) x − 5 x 2 + 16 x
3 3
1 3
(c) x − 3x 2 + 16 x − 5 (d) 8
3
(e) RM101.67
1. (a) D (b) C 2.(a) A (b) C 3. D

230  ANSWERS
TOPIC 9: INTEGRATION
Exercise 9.1
1. πx+c 2. ex + c
ex3
3. 8p3x + c 4. +c
3
u4 3 1 2 32 12 54 x 3
5. − +c 6. − x − x + +c
4 u −2 x 2 3 5 3
x 2 x5 x2 2 1
7. + +c 8. − + +c
2 5 2 x 3x3
e−0.07t e3 s + 4
9. +c 10. +c
−0.07 3
1 1 x2
11. − + 2ln x + − x + c 12. 4ln x + + ex + c
x 2
x 8
Exercise 9.2
65 87
1. 2.
4 10
22 1
3. 4. −
3 3
211
5. 6. 3e5
5
20
7. 4 ln 8 8.
3

ANSWERS  231
Exercise 9.3
1 4 3 1
( t − 8t + 2) + c ( )2 + c
2
1. 2. 4 x 2
+ 2
8 4
3
2 ( e x + 2) 2 1
3. +c 4. +c
3 18 ( 4 − 3x 2 − 2 x3 )
3
3 2
1
5. − (1 − 2s 2 ) 3 + c 6. ln ( x 2 + 2 x + 1) + c
8 2
1.B 2.C 3.A 4.A 5.D
TOPIC 10: APPLICATION OF INTEGRATION
Exercise 10.1
4
1. 2. 12 3. 4 4. 18
3
4 32 9 1
5. 6. 7. 8.
3 3 2 6
Exercise 10.2
1. (a) 0.001q 3 – 0.015q 2 + 176
(b) RM45,038
2. RM2,000
3x 2
3. (a) − 15 x + 8, 000
2
(b) 165 x − 3 x 2 − 8, 000

232  ANSWERS
4. Consumer surplus: 11,250
Producer surplus : 11,250
5. 0.001q3 −0.01q2 +1,000

3
6. CS = 9,000 PS = 18,000
7. CS = 166.66 PS = 53.33
1. A 2. C 3. A 4. C 5. A

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BBMP1103

Mathematics for Management

Copyright © Open University Malaysia (OUM)

Module Writers: Assoc Prof Dr Zurni Omar

Moderators: Fatinah Zainon

Enhancer: Dr Raziana Che Aziz

First Edition, November 2007

Copyright © Open University Malaysia (OUM)

Topic 1 Concepts in Algebra 1

Topic 2 Linear and Quadratic Functions 26

Topic 3 Application of Linear and Quadratic Functions 52

Topic 5 Exponential and Logarithmic Fuctions 102

Copyright © Open University Malaysia (OUM)

Topic 6 Compound Interest: Present Value and Future Value 123

Topic 7 Differentiation 142

Topic 8 Application of Differentiation 161

Copyright © Open University Malaysia (OUM)

Topic 9 Integration 184

Topic 10 Applications of Integration 201

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COURSE GUIDE DESCRIPTION

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

Copyright © Open University Malaysia (OUM)

Table 1: Estimation of Time Accumulation of Study Hours

1. Demonstrate factual knowledge including the mathematical notation and

2. Describe the fundamental principles arising from the mathematical ideas

Topic 4 discusses the classifications of matrices, matrix operation and

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

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

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

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

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TEXT ARRANGEMENT GUIDE

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

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

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

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

Copyright © Open University Malaysia (OUM)

TAN SRI DR ABDULLAH SANUSI (TSDAS) DIGITAL

Copyright © Open University Malaysia (OUM)

1.1 SETS OF REAL NUMBERS

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

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

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

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(a) An integer which is not a natural number;

(b) A rational number that is not an integer; and

(c) A real number that is not a rational number.

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

Polynomial in a single variable is an algebraic expression of the following form:

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

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

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Table 1.1: Properties of Some Polynomials

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

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

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Table 1.2: Classifications of Polynomials by Degrees

(a) Addition and Subtraction of Polynomials

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(b) Multiplication of Polynomials