ALGEBRA

SOME INTRODUCTORY
DEFINITIONS
Algebra
Algebra is a branch of mathematics in which, instead of using
numbers, we use letters to represent numbers.
We all know that 2 + 3 = 5.
Suppose, though, that we substitute letters for the first two numbers,
so that:
2=a
3=b
We can then write:
a+b=5
SOME INTRODUCTORY
DEFINITIONS
All that has happened is that we have replaced the numbers with letters. However, a
number is a specific quantity – for example, 5 is more than 4, but less than 6 – whereas
a letter can be used to represent any number. Thus, in the above expression, “a” could
be 4 and “b” could be 1. We only know that they are 2 and 3 respectively because we
defined them as such before.
The main consequence of this is that algebra uses general expressions and gives
general results, whereas arithmetic (using numbers) uses definite numbers and gives
definite results. Arithmetic is
specific, whereas algebra is general.
Let us consider some examples to illustrate this further.
• Suppose you have a piece of wood which is 7 metres long and from it you wish to cut
a piece 4 metres long. The length of the remaining piece is 3 m, calculated as follows:
7−4=3
SOME INTRODUCTORY
DEFINITIONS
This is a specific arithmetic statement relating to cutting a specific amount from this
particular
piece of wood.
We could translate this into an algebraic expression by substituting letters for the specific
lengths:
let the original length of the piece of wood = x metres
the length of the piece cut off = y metres
The calculation can now be shown as:
x−y=3
This is now a general statement for cutting one length of wood from another to leave a
piece 3
metres in length.
SOME INTRODUCTORY
DEFINITIONS
• To find the area of a floor measuring 10 m long and 9 m wide, we multiply
one dimension by
the other:
Area = 10 × 9 square metres
= 90 sq m
Substituting the letters “l” and “w” to represent the actual length and width,
we can reformulate the expression as:
Area = l × w
Again, this is a general expression which can be made specific by putting in
particular values
for “l” and “w”.
SOME INTRODUCTORY
DEFINITIONS
• The distance travelled by a train in 3 hours at a speed of 60 miles per hour is easily
calculated as:
3 × 30 = 180 miles
Here again, letters may be substituted to give us a general expression:
s×t=d
where: speed = s mph
time = t hours
distance travelled = d miles
Thus, using algebra – working with letters instead of numbers – allows us to construct
general
mathematical expressions. This is not particularly helpful in itself, but is very important
when we
come to consider equations.
EQUATIONS
An equation is simply a mathematical statement that one expression is equal to another. So, for
example, the statement that “2 + 2 = 4” is an equation.
Note that an equation has two sides. Here, they are “2 + 2” and “4”. The two sides must always
be in
equality for the statement to be an equation.
If we now introduce the concept of algebra into this, we have the makings of an extremely useful
mathematical tool.
For example, given that a certain number multiplied by 3 is 6, we can write this as:
3 × the required number = 6.
To save writing “the required number” (or the “ unknown” number), it is more convenient to call it
“x”, so that we can then write:
3×x=6
EQUATIONS
Here are a few simple statements which you can easily write as equations for
practice:
(a) a certain number is added to 4 and the result is 20.
(b) a certain number is multiplied by 4 and the result is 20.
(c) if 4 is taken from a certain number the result is 5.
(d) if a certain number is divided by 3 the result is 1.
The correct equations are:
(a) x + 4 = 20
(b) x × 4 = 20
(c) x − 4 = 5
(d) x ÷ 3 = 1
EQUATIONS
The point of constructing equations in this way is that provide
a means by which you can work out the unknown value (here,
“x”). These examples are very simple and you can probably
solve them (i.e. work out the unknown) very easily. However,
equations can get very complicated. Don’t worry, though –
there are a number of simple rules which can be used to help
solve them.
FORMULAE
A mathematical formula (plural “formulae”) is a special type of equation which can be used for
solving a particular problem.
In fact, we have already introduced two formulae in the preceding section on algebra:
• Area = length × width
• Distance travelled = speed × time
The essence of these two statements is that they are always true, whatever the actual values.
Thus, a
formula is an equation which always applies to a particular mathematical problem, whatever the
actual values. It provides a set of rules which can be used in a particular situation in order to
solve the
Problem.
If we know the actual values, we could put them into the equation, but if not we would have to
treat
them as unknown. Thus, we can formulate a general statement using algebra as follows:
FORMULAE
• A=l×w
where: A = area
l = length
w = width
• d=s×t
where: speed = s mph
time = t hours
distance travelled = d miles
Having a formula for a particular problem set out as a general equation using
algebra enables us to
work out the answer by substituting actual values back into it for the unknowns.
FORMULAE
For example, if we know we have been driving for 2 hours at an average speed of 60 mph, we
can
easily work out the distance travelled by substituting 60 for “s” and 2 for “t” in the above
formula:
d=s×t
= 60 × 2
= 120 miles
There are many formulae used in mathematics and other physical sciences such as chemistry
or
physics. You will meet a good many in your studies – principally in this subject and in financial
subjects. Again, do not worry too much about them. They are usually quite straightforward
and, by
using the general rules governing equations, can easily be used to solve the problem faced.
ALGEBRAIC NOTATION
As algebraic letters simply represent numbers, the operations of addition, subtraction,
multiplication and division are still applicable in the same way. However, in algebra it is not
always necessary to write the multiplication sign. So, instead of “a × b”, we would write simply
“ab” (or sometimes “a.b”, using the full stop to represent multiplication).
Addition and Subtraction
Addition and subtraction follow the same rules as in arithmetic. Thus, just as:
3+3+3+3+3+3=3×6
so y + y + y + y + y + y = y × 6, or 6y
You should note that this holds good only for like terms. Like terms are those of the same symbol
or value – for example, all the terms to be added above were “y”.
When unlike terms are to be added, we can simplify an arithmetical statement, but not an
algebraic statement. For example:
3 + 6 + 7 = 16
y+x+z=y+x+z
ALGEBRAIC NOTATION
The three numbers, when added, can be reduced to a simpler form – i.e. 16.
However, there is not simpler means of expressing “x + y + 3”.
We can, though, simplify expressions when they involve like terms.
Just as the result of adding two numbers does not depend upon their order, so the
result of addition in
algebra is not affected by order. Thus:
2+7=7+2=9
and x + y + 3 = 3 + y + x = y + 3 + x, etc.
In simplifying an algebraic expression, we can collect like terms together whenever
possible. For
example:
5x + 2y − x + 3y + 2 = (5x − x) + (2y + 3y) + 2 = 4x + 5y + 2
ALGEBRAIC NOTATION
We have collected together all the “x”s (5x − x) and all the “y”s (2y + 3y), but
cannot do anything with the “2” which is unlike the other terms.
This distinction between like and unlike terms, and the way in which they can be
treated is an important point.
Multiplication
As we have seen above, the product of a number and a letter, for example 3 × a,
may be written as 3a.
Always place the number before the letter, thus 3a, not a3. Since multiplication by
1 does not alter
the multiplicand, the expression 1a is not used; you just write a.
To multiply unlike terms, we simply write them together with no sign. Thus:
a × b × c × d = abcd
ALGEBRAIC NOTATION
If numerical factors are involved then they are multiplied together and placed in
front of the
simplified term for the letters:
3a × 2b × 4c × d = 24abcd
That this is correct can be shown by writing it in full and changing the order of
multiplication:
3×a×2×b×4×c×d
=3×2×4×a×b×c×d
= 24abcd
Multiplying like terms (for example, x × x) gives a result of the term being raised
to the power of the multiplier (here, x 2). We shall consider this in more detail
below.
DIVISION
Division should present little difficulty if we follow the rules used in arithmetic.
Consequently, just as we write: 4/2 for 4 ÷ 2
so we can write x/y for x ÷ y
Remember that any number goes into itself once. This will prevent you from saying that 6
÷6=0
instead of 6 ÷ 6 = 1.
In the same way x ÷ x = 1. It is then easy to cancel algebraic fractions. For example:
4x/2xy can be cancelled by dividing both the numerator and denominator by x
x to give 4/2y
4/2y can be further cancelled by dividing both the numerator and denominator by 2 to give
2/y
or we could simply say we can cancel 4x/2xy by dividing both parts by 2x.
We can always cancel like terms in the numerator and denominator.
INDICES, POWERS AND ROOTS
You will remember that indices are found when we multiply the same number by itself several times.
The same rules apply in algebra, but we can investigate certain aspects further by using algebraic
notation.
To recap,
x × x is written as x 2 (referred to as “x squared”)
x × x × x is written as x 3 (referred to as “x cubed”)
x × x × x × x is written as x 4 (referred to as “x to the power four” or “x raised to the
fourth power”)
and so on.
In, for example, x5 , x is termed the base and 5 is called the exponent or index of the power.
Note two particular points before we go on:
x=x1
x0 = 1
(A) MULTIPLICATION OF INDICES
You will note that, for example:
x ^2 × x^ 4 = (x × x) × (x × x × x × x)
=x×x×x×x×x×x
= x^ 6
= x ^2 + 4
and x^3 × x^ 5 = (x × x × x) × (x × x × x × x × x)
=x×x×x×x×x×x×x×x
= x^ 8
= x^ 3 + 5
There is in fact a general rule that, when we have two expressions with the same base,
multiplication is achieved by adding the indices. Thus:
X^ m × x^ n = x^ m + n (Rule 1).
(B) DIVISION OF INDICES
When we divide expressions with the same base, we find we
can achieve this by subtracting the indices. For example:
X^6 /X^3 = X^6-3 = X^3
The general rule is:
X^m/X^n = X^m-n Rule 2
c) Showing reciprocals
In Rule 2 above, let us put m = 0, so that the expression
becomes :
X^0/X^n = 1/X^n = X^-n
(D) RAISING ONE POWER BY
ANOTHER
To work out an expression such as (x^2) ^3 – i.e. x squared all
cubed – we have x 2 × x 2 × x 2 as it is
the cube of x^ 2 .
Thus (x^ 2) ^3 = x ^2 × x^ 2 × x^ 2
=x×x×x×x×x×x
= x ^6 = x ^2 × 3
In general, we have (x^m) ^n = x^ mn (Rule 3)
(E) ROOTS
Indices do not have to be whole numbers. They can be fractional.
Let us consider x^½ (i.e. x raised to the power half). We know from rule
(3) above that: (x^ ½ ) 2 = x^ ½ × 2 = x
Thus, x ½ when multiplied by itself gives x. However, this is exactly the
property that defines the square root of x. Therefore, x ½ is the square
root of x which you will sometimes see denoted as 2 x or, more
commonly, as x.
Therefore, x½ ≡ x. (The symbol “≡” means identical with.)
Similarly, ( x^1/3 )3 = x. Thus, x^1/3 is the cube root of x which is also
denoted by the symbol
3x.
(E) ROOTS
Similarly, ( x^1/3 )3 = x. Thus, X^1/3 is the cube root of x which is also denoted by the
symbol3 x .
Similarly, x ^¼ is the fourth root of x denoted by 4 x .
Thus, in general, we can say that:
X^1/n is the nth root of x or n x .
Note that in all the above expressions the symbol to the left of the root sign – for example, 3
x
– is written so that it is level with the top of the root sign. A number written level with the
foot
of the root sign – for example, x3 – would imply a multiple of the square root of x – in this
example, 3 times the square root of x.
We shall often need to use square roots in later work, particularly in statistics and in stock
control.
(F) ROOTS OF POWERS
There is one more type of index you may meet – an expression such as:
X^3/5 , or in general X^n/m.
To interpret these, remember that the numerator of a fractional index denotes a power and that the
denominator denotes a root.
Thus, X^3/2 is (x^ 3 ) ½ , i.e. the square root of (x cubed) or 2 3x . Alternatively, it is (x ½ ) 3, i.e.
the
cube of (the square root of x) or ( x ) 3
.
Let us consider its value when x = 4:
4^3/2 = square root of 4^3 = 4 x4 x4 = 64 = 8 (since 8 × 8 = 64)
or
4^3/2 = ( 4 ) 3 = 2^ 3 = 2 × 2 × 2 = 8
Therefore, it does not matter in which order you perform the two operations, and we have:
x ^m/n= x mn = ( xn ) m
(G) COLLECTING LIKE TERMS
We saw earlier how we can collect like items. Let us look at a
couple of examples where indices are involved. It is no more
complicated, even though it may look that way.
a^ 2 + 2a^ 2 = a^ 2 + a^ 2 + a ^2 = 3a^ 2
These are like terms and can be added.
b^2 + 2b^ 2 + 2b^ 3 = b^ 2 + b^ 2 + b^ 2 + b^ 3 + b^ 3
= 3b^ 2 + 2b^ 3
Note that b^2 and b^ 3 are not like terms, so they cannot be
combined.
BRACKETS IN ALGEBRA
The rules for brackets are exactly the same in algebra as in arithmetic. However, if we have unlike
terms inside the brackets, it is not possible to collect them together before removing the brackets. In
such cases, we need to be very careful when removing them and use the following three rules
• if the bracket has a term (a number or a letter) in front of it, everything within the bracket must
be multiplied by that term;
• if a bracket has a + sign before it, or before the term by which the terms inside the brackets are
to be multiplied, the signs + or − within the brackets remain unchanged;
• if a bracket has a − sign before it, or before the term by which the terms inside the brackets are
to be multiplied, the signs + or − within the brackets are changed so that + becomes −, and vice
versa;
BRACKETS IN ALGEBRA
These rules need a little explanation, so let us consider some examples.
(a) 4x + 2(x − y)
The terms inside the brackets are unlike and cannot be further collected. All the terms within the
brackets must be multiplied by the term outside before removing the brackets, so this gives:
4x + 2x − 2y = 6x − 2y
(b) x − (y + 3z)
Again, the terms inside the brackets are unlike and cannot be further collected, so we can
proceed to remove the brackets as the next step.
Since there is a − sign before the brackets, we must reverse the signs of the terms inside when
removing them. Thus:
x − y − 3z
We can clarify this by imagining that there is an unwritten “1” before the bracket, making the
expression, effectively:
x − 1(y + 3z)
BRACKETS IN ALGEBRA
This “1” is multiplying the whole bracket:
x − 1 × (y × 3z)
This gives us three separate terms:
x, −1 × y, and −1 × 3z
Thus, we have:
x − y − 3z
(c) 3a(a − 3) − 4b(b − 4)
The first bracket is multiplied by 3a and the second by −4b. This gives us:
3a ^2 − 9a − 4b^ 2 + 16b
Note that the − sign before the second bracket changes the + sign inside.
BRACKETS IN ALGEBRA
Often we find it necessary to insert brackets into an algebraic
expression. This is known as factorisation because, when we
include the brackets, we place any common factor outside the
brackets.
Thus:
x + 5y + 5z = x + 5(y + z)
x − 5y + 5z = x − 5(y − z)
Notice how we must keep an eye on the signs as well.
SOLVING EQUATIONS
When we talk about solving an equation, we mean finding the value of the unknown or
unknowns
using the other numbers in the equation. For example, in:
4x = 20
the value of the unknown (x) can be discovered because of the stated relationship between 4
and 20.
You will easily conclude that if 4 times the unknown = 20 then the unknown must be 5.
There are a number of rules which can be used to help solve equations and we shall consider
these
below in relation to equations which have only one unknown. In a later unit we shall examine
more
complex equations – those with two or more unknowns – and consider additional rules.
However,
these are based on the simple rules which we set out here.
EQUALITY OF TREATMENT TO
BOTH SIDES OF THE EQUATION
This is the golden rule that you must always follow when handling equations and there are no
exceptions.
What you do to one side of the equation, you must also do to the other.
Remember that an equation has two sides and those two sides must always be in equality for the
whole statement to be an equation. So, anything we do to the equation must maintain this
equality.
Another way of thinking about this is that an equation is like a balance. If the weights of a balance
are equal on both sides it is “in balance”. You can add an equal weight to each side, or take an
equal
weight from each side, and it will remain “in balance”.
Looking at the rule in more detail, we can see a number of possible operations which may be
carried
out without changing the equality of the equation.
(A) THE SAME NUMBER MAY BE ADDED
TO BOTH SIDES OF THE EQUATION
For example:
x–4= 6
If we add 4 to each side, then we get:
X- 4+4= 6+4
x = 10
(b) The same number may be subtracted from both sides of the equation
For example:
X + 6 = 18
If we deduct 6 from each side, we get:
X + 6 – 6 = 18 - 6
X = 12
(C) BOTH SIDES OF THE EQUATION MAY
BE MULTIPLIED BY THE SAME NUMBER.
For example:
1/3 of a number is 10, or 1/3 x =10, or x/3 = 10
If we multiply both sides by 3, we get:
x/3 x 3 = 10 x 3
3x/3 = 30
x = 30
(D) BOTH SIDES OF THE EQUATION MAY
BE DIVIDED BY THE SAME NUMBER.
For example:
2 times a number is 30, or 2x = 30
If we divide both sides by 2, we get:
2x/2= 30/2
X= 15
You should have noticed that the object of such operations is
to isolate a single unknown, x, on one side of the equals sign.
TRANSPOSITION
When you understand the rules in the previous subsection you
may shorten your working by using transposition instead.
Transposition is a process of transferring a quantity from one side
of an equation to another by changing its sign of operation. This is
done so as to isolate an unknown quantity on one side.
You must observe the following rules:
• An added or subtracted term may be transposed from one side
of an equation to the other if its sign is changed from + to - , or
from – to +
Consider the following examples:
TRANSPOSITION
(a) x - 4 = 6
Transfer the 4 to the right-hand side of the equation and
reverse its sign:
x=6+4
x = 10
(b) x + 6 = 18
Transfer the 6 to the right-hand side and reverse its sign:
X = 18 - 6
x = 12
TRANSPOSITION
c) 12 + x = 25
Transpose the 12 and reverse its sign:
X = 25 - 12
X = 13
(d) 18 = x + 14
First transpose the x and reverse its sign:
18 – 14 = x
Then transpose the 14 and reverse its sign:
18 -14 = x
x =4
TRANSPOSITION
Note that we can keep transposing terms from one side to the other until we
have isolated the unknown quantity.
• A multiplier may be transposed from one side of an equation by changing it to
the divisor on the other
Similarly, a divisor may be transposed from one side of an equation by changing
it to the multiplier on the other.
Consider the following examples:
(a) x/4 = 12
To get x by itself, move 4 across the sign and change it from divisor to multiplier,
i.e.:
x =12x 4
X = 48
TRANSPOSITION
(b) 2x =20
To get x by itself, transpose the 2 and change it from multiplier to divisor, i.e.:
X = 20/2
x = 10
(c) 24/x = 6
In this case, we need to transpose x and change it from divisor to multiplier, i.e.:
24 = 6x
Then, to get x by itself, we transpose the multiplier (6) and change it to a divisor:
24/6 = x
x =4
This rule is called cross multiplication.
EQUATIONS WITH THE UNKNOWN
QUANTITY ON BOTH SIDES
These equations are treated in the same way as the other equations we have met so far. We simply
keep transposing terms as necessary until we have collected all the unknown terms on one side of the
equation.
For example, consider 3x - 6 = x + 8
First move the 6 to the right-hand side, making it +6:
3x = x + 8 + 6
Then transpose x from right to left, changing its sign:
3x - x = 8 + 6
2x = 14
Finally, move the 2 to the right-hand side changing it from multiplier to divisor, and thus isolating x
on the left:
X = 14/ 2
x =7
FORMULAE
A formula is a mathematical model of a real situation. The easiest way to explain this is
to give an example.
Formulating a Problem
When person borrows money, he/she has to pay interest on the loan (called the
“principal”). The
amount of interest payable is determined by the annual rate of interest charged on the
money
borrowed, taking into account the time over which the loan is repaid. If we want to
work out the
amount of interest repayable on a particular loan, the calculation is as follows:
Interest the principal multiplied by the percentage rate of interest, multiplied by the
number
of time periods the interest is to apply.
FORMULAE
We could model this situation by using algebraic notation and then show the whole
calculation as an equation:
let: I =simple interest
P =principal
r =rate of interest (%)
n =number of periods
then: I = P x r/100 x n
This equation is the formula for calculating simple interest. It can be used for any
simple interest
calculation and enables us to find the value of any one of the elements, provided
that we know all the
others.
FORMULAE
Thus, what we have done is express the real situation as a mathematical
model using an algebraic equation. This particular formula is very
important in financial studies and can be applied in many situations.
However, it is possible to develop formulae to model any situation
involving mathematical relationships. Some are just useful for helping to
understand how to work out a particular problem or situation you are
faced with, whilst others describe key mathematical relationships which
you will meet time and again throughout the course.
For example, consider the following situation:
A man runs at a certain number of km per hour for a certain number of
hours, and then cycles at a certain number of km per hour for a certain
number of hours. What is his average speed?
FORMULAE
let: x = the speed at which he runs (in kph)
y = the number of hour he runs
p =the speed at which he cycles (in kph)
q =the number of hour he cycles
Therefore, we can say he covers (xy + pq) kilometres in (y + q) hours.
then: Average speed (pq+xy)/(q + y) km per hour.
Note that when we use a letter such as x to represent an unknown quantity, it only
represents that
quantity and the units must be exactly specified. For example, we said “let x the
speed at which he
cycles (in kph)” – to have said “let x = the speed at which he cycles” would have
been inaccurate.
FORMULAE
The steps to take in formulating the problem, then, are as follows:
• select a letter to represent each of the quantities required;
• convert each block of information from the problem into an algebraic term or
statement, using the letters selected;
• form an equation by combining the symbolic terms, ensuring that all terms are
expressed in the same units.
The last step is to test the formula by going back to the problem and check that it
works by using real
number values in the formula through the process of substitution. We shall look at
substitution below.
As practice, see if you can work the following problem out by developing a formula.
Note that the
unknown quantities have already been given letters.
FORMULAE
A grocer mixes m kg of tea at x pence per kg with n kg of tea at y pence per
kg. If he sells the mixture at v pence per kg, what profit, in pence, does he
make? Bring your answer to £s.
The solution would be as follows:
Profit = Selling price - Cost price
Selling price = Quantity sold x Price
v(m - n) pence
Cost price= mx - ny pence
Profit v(m+ n)/ (mx + ny) pence
To convert this to £s, we simply divide the result by 100:
Profit = £ v (m + n) (mx + ny)/ 100
CONSTANTS AND VARIABLES
As we have seen above, formulae consist of letters (algebraic
notation) and, sometimes, numbers. These are combined together in
particular ways to express the mathematical relationships between
the terms such that a particular result is obtained.
The numbers in a formula always stay the same and are known as
constants. so, for example, in the formula for simple interest, the
constant will always be 100, no matter what the values given to the
P, r and n in a particular situation.
The letters are, on the other hand variables. The value that they
have in working out the formula in any particular situation may vary
– it depends on the particular circumstances of the problem.
CONSTANTS AND VARIABLES
We defined a formula as a mathematical model of a real situation. In order to use that
model in a real situation, we have to give the variables the values which apply in that
particular situation. Doing this is the process of substitution.
Turning back to the formula for simple interest, consider the following example:
What is the simple interest on £1,000 invested at 10% per annum (i.e. per year) for two
years?
First of all we should restate the formula:
First of all we should restate the formula:
I= P x r/100 x n
Now we substitute the values from the problem into the formula:
P = £1,000
r = 10
n =2
CONSTANTS AND VARIABLES
So: I = £1,000 x 10/100 x 2
= £200
This explains the principle of substitution. In the next unit you
will get much more practice in this.
BASIC BUSINESS
APPLICATION
CURRENCY AND RATES OF EXCHANGE
CURRENCY AND RATES OF
EXCHANGE
Each country has its own system of coinage and this is known as its currency. The process of
finding the value of the currency of one country in terms of the currency of another country is
called exchange.
Rates of Exchange
You are, no doubt, familiar with various currency systems. They are invariably based on the
decimal number system – for example, America uses the dollar ($) and the cent, which is
equivalent to one- hundredth of a dollar, France has the French franc (FF) and the centime, which
is one-hundredth of a franc, and British currency comprises the pound sterling (£) and pence,
which are one-hundredth of a
pound.
The values of the different currencies used to depend upon the amount of gold which the country
possessed, but now that we are no longer on the “gold standard”, their values depends on the
political and economic circumstances of the countries concerned. Such value is measured by how
much one unit of currency costs in another currency. For example, one unit of British currency (£1)
costs approximately 1.45 units of US currency ($1.44). This relationship of one currency to another
is known as the rate of exchange.
RATES OF EXCHANGE

These values vary from day to day and are quoted in most daily papers. The changes in value are
brought about by such things as changes in government, changes in government policies, the national
budget, the relationship between the value of exports and imports, etc. To give you some idea of the
scale of changes over time, before the Second World War the value of the dollar was about 21p (i.e. $1
£0.21), whereas now it is about 69p (i.e. $1 £0.69). However, such large changes usually only
occur over a long period or because of some particular economic problem. In general, the changes are
very small, although they can take place quite rapidly. Even then, although the changes may be very
slight, their effects can be very large when you consider the amounts of money involved – companies
may have many millions of pounds sterling invested in overseas currencies, and a small change in the
value of those currencies can produce substantial losses or gains, depending on the whether the value
of the currency rises or falls against the pound.
RATES OF EXCHANGE
The rate of exchange is expressed as a ratio. It shows the value of one unit of currency in terms of
another currency. Thus, one side of the ratio is always “1”. Here are some examples of the rate of
exchange of the British £:
£1 10.55 FF
£1 3.15 DM (German marks)
£1 $1.44
Note that, although it is a ratio, the rate of exchange is usually shown as “x y”, rather than “x : y”.
It is this ratio which determines how much of one currency can be bought with another currency, or
how much a particular amount of one currency is worth in another.
Before we look at the relevant calculations involved in converting one currency to another, there
are
two further points to note about the rate of exchange.
RATES OF EXCHANGE
• For any relationship between two different currencies, the rate of exchange can be expressed
in two ways – how much one unit of one currency is worth in terms of the other, and vice versa.
Thus, the rate of exchange between the £ and the DM could be shown as:
£1 3.15 DM or 1 DM £0.32
• The rate of exchange is usually quoted in two forms – a selling price and a buying price. The
selling price determines the amount of foreign currency you will be sold for your pounds, and
the buying price determines the amount of pounds you will receive in return for your foreign
currency. (The difference between the two enables the bank or other agency undertaking the
exchange to make a profit.) As an example of the two different prices, the rates quoted
mightbe:
Buying rate Selling rate
£1 10.6 FF 10.5 FF
£1 3.16 DM 3.14 DM
£1 $1.43 $1.45
CURRENCY CONVERSION
To find the value of a sum of money in one currency in terms of another currency,
we could develop a simple formula using the rate of exchange, as follows:
let e rate of exchange expressed as the number of units of a second currency
equivalent
to one unit of a first currency (as in $1.44 £1)
x amount in first currency
y amount in second currency
To convert a certain amount of the first currency (say, £x) into the second
currency (say $y), we
multiply the amount of the first currency by the rate of exchange. Thus the
formula would be:
y=xxe
CURRENCY CONVERSION
So, to convert £100 into $ at the rate of £1 $1.44, we would substitute the
following values into the formula:
X = 100 , e = 1.44
The formula gives us the following calculation:
$y= 100 x 1.44 = $144
If we wanted to know much a particular sum of the second (say $y) currency
would be worth in the first (say £x) currency, we would have to rearrange the
above formula to isolate “x”. To do this, we simply divide each side of the
equation by “e” – the rate of exchange:
y/e = ex/e
x = y/e
We can now apply these formulae to any given problem.
CURRENCY CONVERSION
(a) What is the cost in £ of a bill of exchange in Paris for 1,275
francs if the rate of exchange is £1= 9.90 FF?
The rate of exchange is expressed as 9.90 units of one currency is
equivalent to 1 unit of the other. So, FF is the second currency and
£ the first, and “x” is the amount in £s and “y” the amount in FF.
Substituting in the second formula (to find x) we get:
£x = £ 1275/9.90 = £128.79
(Note that the actual result of the calculation is £128.78787, but
we round up to express it correct to two decimal places as
required for currency.)
CURRENCY CONVERSION
(b) Find the value of £63.40 in Swiss francs if the rate of exchange is £1=
3.90 SF
The rate of exchange is expressed as 3.90 units of the second currency (SF)
is equivalent to 1 unit of the first (£). So, again “x” is the amount in £s and
“y” the amount in SF. Substituting in the first formula (to find y) we get:
y SF = 63.40 x 3.90 = 246.26 SF
(c) Convert $3,000 to pounds given that £1 = $1.45
The rate of exchange is expressed as 1.45 units of the second currency ($)
is equivalent to 1 unit of the first (£). So, again “x” is the amount in £s and
“y” the amount in $. Substituting in the second formula (to find x) we get:
£x = £ 3000/45.1 = £2,068.97
CURRENCY CONVERSION
(d) Convert 1,000 DM to pounds given that £1 = 1.31 DM
This should be becoming clear to you now.
£x = £ 1000/1.31 = £763.36
(e) Find the value of £250 in dollars if the exchange rate is £1
= $1.5
$y = 250 x 1.5 = £375
SIMULTANEOUS
EQUATIONS
SIMULTANEOUS EQUATIONS
As we said in the introduction, up until now, when solving equations,
we had only one unknown quantity to find. However, in the practical
world, many situations will arise when there is more than one unknown.
If an equation involves two unknown quantities, we may find any
number of pairs of values to satisfy it. Consider the following example:
x+y=7
This may be satisfied by:
x = 3 and y = 4
x = 2½ and y = 4½
x = −1.3 and y = +8.3, etc.
SIMULTANEOUS EQUATIONS
To determine a particular pair of unknown values, then, we need
more information. One way of getting more information is to
have another equation – for example:
x + y = 7 and 2x + y = 12
Now there is only one solution pair: x = 5 and y = 2.
Similarly, if x + y = 7 and x − y = 2, there is only one solution: x
= 4½ and y = 2½.
Therefore, to find two unknowns we need two equations, and to
find three unknowns we need three equations, etc. These groups
of equations are known as simultaneous equations.
SIMULTANEOUS EQUATIONS
Note, though, that for equations to be simultaneous they must
satisfy two conditions – they must be consistent and
independent. For example:
• the equations x + y = 7 and 2x + 2y = 5 are inconsistent –
they cannot be true simultaneously, and no pair of values
which satisfies one will satisfy the other;
• the equations 3x + 3y = 21 and 2x + 2y = 14 are not
independent – they are really the same equations, and all
pairs of values which satisfy the one will satisfy the other.
SOLUTION BY ELIMINATION
If two equations are true simultaneously, any other equation
obtained from them will also be true. The method of solution by
elimination depends on this fact.
By adding or subtracting suitable multiples of the given
equations, we can eliminate one of the unknowns and obtain an
equation containing only one unknown. Once we have done that,
the resulting equation can be solved using the methods we
already know, and then the other unknown may be discovered by
substitution in the original equation.
The following examples explain the method. Study them carefully
SOLUTION BY ELIMINATION
Example 1
Consider the following pair of equations:
3x + y = 11 (1)
x − y = −3 (2)
We can add the two equations together to derive a third
equation which will eliminate y:
SOLUTION BY ELIMINATION
3x + y = 11
x − y = −3
4x = 8
Thus, by adding the two equations, we are left with 4x = 8. Therefore, x = 2
If we now substitute that value for x in (1), so that 3x becomes 6:
6 + y = 11
∴ y = 5 (The symbol ∴ means “therefore”.)
We can check that the values we have determined for x and y are correct by substituting both in
equation (2):
x − y = 2 − 5 = −3
Note that eliminating one of the unknowns (in this case, y) was possible because both the “y”s in the
original two equations had a coefficient of 1 – i.e. the coefficients were equal. (The coefficient is simply
the factor or number applied to an algebraic term, so the coefficient of the term 3x is 3.) If we want to
eliminate one of the unknowns by adding or subtracting the two equations, the coefficients of the
unknowns must be equal.
SOLUTION BY ELIMINATION
Example 2
Consider the following pair of equations:
6x + 5y = −6 (1)
18x + 7y = 6 (2)
We want one of the unknowns to have equal coefficients, but unlike in Example 1, this is not the case
here. However, we can see that the coefficient of x in (2) is a multiple of the coefficient of x in (1). To
make the coefficients equal, we derive a changed version of the same equation by multiplying (1)
by 3 and then subtract (2) from this equation:
Multiplying (6x + 5y = −6) by 3 gives:
18x + 15y = −18
Note that, providing we apply the same proportionate change to each term in the equation (by
multiplying or dividing each by the same number), the equation has not been changed. It is not a
new, independent equation, but simply a different way of expressing the same equation.
We can now subtract equation (2) from this:
SOLUTION BY ELIMINATION
18x + 15y = −18
18x − 7y = 6
8y = −24
∴ y = −3
To find x, we substitute the value of y = −3 in (1) so that 5y becomes −15:
6x + (−15) = −6
By transposition, we get:
6x = −6 + 15 = 9
∴ x = 1.5
It is always good practice to check the values by substitution in the other equation, but
we will skip
that step from now on.
SOLUTION BY ELIMINATION
Example 3
Consider the following pair of equations:
13x − 7y = 33 (1)
9x + 2y = 16 (2)
This time, there are no equal or multiple coefficients, so there is no obvious unknown term which can be
easily eliminated. We can, then, choose which unknown to eliminate and, to avoid large numerical terms, we
shall decide to eliminate y. Where there are no equal or multiple coefficients, we need to change the way in
which both equations are expressed so that we can make the coefficients of one of the unknowns equal. To do
this here, we multiply (1) by 2 and (2) by 7, so that the coefficient of y in both equations is 14. We can then
eliminate y by adding the two equations:
26x − 14y = 66
63x + 14y = 112
89x = 178
∴x=2
To find y, we substitute the value of x = 2 in (2) so that 9x becomes 18:
SOLUTION BY ELIMINATION
18 + 2y = 16
By transposition, we get:
2y = 16 − 18 = −2
∴ y = −1
Important note: When working through the processes of
transposition and substitution, it is not necessary to write −
(−7) and + (−15), etc., but be sure to pay special attention to
all calculations involving negative numbers.
SOLUTION BY ELIMINATION
Forming simultaneous equations from single equations
Equations are sometimes given in the form:
x + 5y = 2x − 4y + 3 = 3x + 2y − 4
In order to solve this, we need to re-formulate the equation as two simultaneous equations.
Taking the first pair of expressions, we can rearrange the terms to form one equation in the
usual form:
x + 5y = 2x − 4y + 3
∴ −x + 9y = 3
Now take the second pair of expressions and rearrange them:
2x − 4y + 3 = 3x + 2y − 4
∴ 2x − 3y = 4
SOLUTION BY ELIMINATION
We now have two simultaneous equations as follows:
−x + 9y = 3 (1)
2x − 3y = 4 (2)
These can be solved in the usual way. To eliminate y, multiply
(2) by 3 and add to (1):
5x = 15
∴x=3
∴ y = 3/2
FORMULATING PROBLEMS AS
SIMULTANEOUS EQUATIONS
As we have seen previously, it is very useful to develop mathematical models of real
situations to
help analyse and solve the problems of those situations. The use of algebraic notation to
represent
variables in a situation and their combination with numerical constants to form equations
are the
building blocks of such mathematical models.
We have seen that simple equations can be developed to model a situation and enable us to
find the
value of one unknown variable where we know the values of all the other variables. In the
same way,
we can develop models which will enable us to find two or more unknown variables by using
simultaneous equations.
FORMULATING PROBLEMS AS
SIMULTANEOUS EQUATIONS
The key points about formulating problems as simultaneous equations are the same as doing
the same
with simple equations:
• Always state clearly what your unknowns represent and give the units you are using.
• Having found the number for which the unknowns stand, give the answer to the question in
words.
• Check your answer in the question, not in your own equation.
Consider the following examples and try to form the equations for yourself before looking at
the
solutions given. Note, too, that unless you are told to find both, or all, of the unknowns, it is
not
essential to do so, but it is most advisable, as otherwise you have no means of checking your
answer.
FORMULATING PROBLEMS AS
SIMULTANEOUS EQUATIONS
Example 1
The expenditure of 10 men and 8 boys amounts to £160. If 4 men together spend £18
more than 6
boys, how much does each man and boy spend? (Assume each man spends the same
amount and
each boy spends the same amount.)
Let: x = expenditure of 1 man in £
y = expenditure of 1 boy in £
Then we can express the information in the situation as equations:
10x + 8y = 160 (All terms must be expressed in the same unit, i.e. here pounds.)
and 4x − 6y = 18
Solving these two equations will answer the problem.
FORMULATING PROBLEMS AS
SIMULTANEOUS EQUATIONS
Example 2
In a bag containing black and white balls, half the number of white is
equal to a third the number of black, and twice the total number of balls
exceeds three times the number of black balls by four.
How many balls did the bag contain?
Let: x = number of white balls
y = number of black balls
Expressing the information in the situation as equations, we get:
1/2 x = 1/3y
and 2(x + y) − 3y = 4.
QUADRATIC EQUATIONS
QUADRATIC EQUATIONS
All the equations we have studied so far have been of a form where all the variables are to the
power
of 1 and there is no term where x and y are multiplied together – i.e. xy does not feature in the
equation. (These types of equation are known as linear equations since, as we shall see in the
next
unit, if we draw a graph of the outcome of the equation for all the possible values of the
unknowns,
the result is a straight line.)
By contrast, a quadratic equation is one that contains the square of the unknown number, but no
higher power. For example, the following are quadratic expressions in x:
4x^ 2 + 7x
2x ^2 − x + 1
1/2 x ^2 − 2.
QUADRATIC EQUATIONS
We can also have quadratic expressions in x^ 2. For example, 3x^4 + 2x ^2 + 5 is a quadratic in
x^ 2
, since it may be also be written as:
3(x^2) ^2 + 2(x^ 2 ) + 5, or
3y^2 + 2y + 5, where y stands for x ^2 .
Note that these are examples of quadratic expressions. A quadratic equation is obtained by making
such an expression equal to a similar expression or to a number.
One of the features of quadratic equations is that, usually, they cannot be solved definitively. There
are generally two possible values for the unknown.
A second feature, reflecting this, is that when we draw a graph of the outcome of a quadratic
equation
for all the possible values of the unknown, the result is a curve. Again, we shall examine this later.
SOLVING A QUADRATIC EQUATION
BY FACTORISATION
If an equation contains two unknown numbers, we cannot determine their values unless we are told
something more. For example, if x and y are two quantities and all we are told about them is that
their product is 12, we cannot tell either of their values – x may be 3, in which case y must be 4; or
x
may be −½, in which case y must be −24, etc. This is true whatever the value of the product, with
the
one exception that if xy = 0, then either x = 0 or y = 0.
If x = 0, y may have any value, and if y = 0, x may have any value. They need not both be 0, but
one
of them must be, since the product of two numbers is zero only when one of them is itself zero.
This important fact provides the easiest method of solving a quadratic equation, as is shown in the
following examples.
SOLVING A QUADRATIC EQUATION
BY FACTORISATION
Example 1
Consider the following equation:
x(x − 3) = 0
Here, the product of the two factors x and (x − 3) is zero. Therefore, one of the factors
must be zero:
either: x = 0
or: (x − 3) = 0
Further, if (x − 3) = 0, then x = 3
Thus, the equation is satisfied if x = 0, or if x = 3.
Having understood the principle of this procedure, we do not need to give it in full
every time. The
following example simplifies the steps.
SOLVING A QUADRATIC EQUATION
BY FACTORISATION
Example 2
Consider the following equation:
x(x − 5) = 0
Either, x = 0, or (x − 5) = 0
∴ x = 0, or x = 5
The important thing to remember is that this applies only to a
product the value of which is zero.
Therefore, the above method of solving an equation applies only
when the RHS (right-hand side) of the equation is zero, while the LHS
can be expressed in factors.
Example 3
Consider the following equation:
(x − 5)(x − 2) = 4
We must rearrange this so that the RHS is zero. First of all, we have to expand the
product of the
factors:
x ^2 − 7x + 10 = 4
Then we rearrange the equation so that the RHS is zero:
x ^2 − 7x + 6 = 0
Now we have to re-express the LHS in factors:
(x − 6)(x − 1) = 0
Now we can say that either (x − 6) = 0, or (x − 1) = 0.
∴ x = 6, or x = 1
Check this in the original equation just to justify to ourselves that the method works:
(x − 5)(x − 2) = 4
If x = 6:
(6 − 5)(6 − 2) = 1 × 4 = 4
If x = 1:
(1 − 5)(1 − 2) = (−4)(−1) = +4
Example 4
Consider the following equation:
7x^ 2 + 23x = 60
First, collect all the terms on the LHS, so that the RHS is zero
7x ^2 + 23x − 60 = 0
Then factorise the LHS expression:
(7x − 12)(x + 5) = 0
Then equate each factor in turn to zero:
either (7x − 12) = 0, or (x + 5) = 0
which may be expressed as:
∴ 7x = 12, or x = −5
Finally, give your answers as alternative values for x:
∴ x = 12/7 =1 5/7 or −5
Example 5
Solve x(5x − 2) = 3(2x − 1)
Expand the product of the factors:
5x^ 2 − 2x = 6x − 3
Collect the terms:
5x ^2 − 8x + 3 = 0
Factorise the LHS:
(5x − 3)(x − 1) = 0
∴ 5x = 3, or x = 1
∴ x = 3/5 or 1
Solving Quadratic Equations with No Terms in X
In particular circumstances, there is a quicker and easier method than the factor method
of solving a quadratic equation.
Consider the following equation:
25x ^2 − 36 = 0
Using the factor method, this would be solved as follows:
(5x − 6)(5x + 6) = 0
∴ 5x = 6, or 5x = −6
∴ x = 1.2 or −1.2.
There is, however, a simpler method of obtaining this answer and you should use it
whenever there is
no term in x in the given equation:
25x ^2 − 36 = 0
25x^ 2 = 36
x ^2 = 36/25
To solve this, take the square root of each side, remembering that there are two square
roots
numerically equal, but opposite in sign:
2x = 36/25
x=±5
6 or ±1.2
SOLVING QUADRATIC EQUATIONS
BY FORMULA
Example 1
Consider the following equation:
5x^2 − 15x + 1= 0
Example 2
Consider the following equation:
3x^ 2 + 4x − 5 = 0
Example 3
Consider the following equation:
3 − 2x^ 2 = 4x
THANK YOU
Brita Tamm
502-555-0152
brita@[Link]
[Link]