Algebra

Algebra 2-1

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Algebr
a

Chapter 22
Chapter

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 Algebra
Algebra 2-2
Learning Objectives
Learning Objectives
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After completing this chapter, you will be able to:

LO 1. Simplify algebraic expressions

LO 2. Solve linear equations in one variable

and
Solve "word problems" that lead to a
linear equation in one unknown

LO 3. Solve problems involving a single percent change

Also
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 Algebra
Algebra 2-3
Learning Objectives
Learning Objectives
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LO 4. Calculate returns from investments in terms of

both dollars and percentages
Solve problems involving a series of
compounding percent changes and
Determine the overall effect of compounding a
series of percent changes or rates of
return on investment(ROI)

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 Ax(2xlgebraic
Algebra
Algebra 2-4

lgebraic
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–3x – 1)
LO 1.
Operations
perations

Algebraic Expression
…indicates the mathematical operations to be
carried out on a
combination of NUMBERS and VARIABLES

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 Ax(2xlgebraic
Algebra
Algebra 2-5

lgebraic
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–3x – 1)
Operations
perations

Terms
…the components of an Algebraic Expression
that are separated by
ADDITION or SUBTRACTION signs

x(2x2 –3x – 1)
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 Ax(2xlgebraic
Algebra
Algebra 2-6

lgebraic
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–3x – 1)
Operations
perations
Terms
Monomial Binomial
Monomial Binomial Trinomial
Trinomial Polynomial
Polynomial
1 Term 2 Terms 3 Terms …any
more than
1 Term!
22 22 22
3x 3x + xy 3x + xy – 6y22
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 A
Algebra
Algebra 2-7
lgebraic
lgebraic
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x(2x –3x – 1)
2

Operations
perations
Term
erm
…each one in an Expression consists of one or
more FACTORS separated by
MULTIPLICATION or
DIVISION sign
…assumed when two
…assumed when two …assumed when one
…assumed when one
factors are
factors are written
written factor is
factor is written
written
beside each
beside each other!
other! under an
under an other!
other!

xy = x*y 36x2y
60xy2 Also
Also
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 A
Algebra
Algebra 2-8
lgebraic
lgebraic
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x(2x –3x – 1)
2

Operations
perations

Term
erm
FACTOR
FACTOR

Numerical
Numerical Literal
Literal
Coefficient
Coefficient Coefficient
Coefficient
22
3x
2
3 x
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 A
Algebra
Algebra 2-9
lgebraic
lgebraic
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x(2x –3x – 1)
2

Operations
perations
Algebraic Expression
lgebraic E xpression

Terms
erms

Monomial Binomial
Monomial Binomial Trinomial
Trinomial Polynomial
Polynomial

FACTORS
FACTORS
Numerical
Numerical Literal
Literal
Coefficient
Coefficient Coefficient
Coefficient
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 Algebra
Algebra 2-10
Algebra

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Division by a Monomial
Example
36 x2y
60 xy2
Identify Factors FACTORS
Step
Step in the numerator FACTORS
11 and denominator 36x y
2
3(12)(x)(x)(y)
=
60xy 2
5(12)(x)(y)(y)
Step Cancel Factors
Step
22 in the numerator
= 3x
and denominator 5y
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 Algebra
Algebra 2-11
Algebra

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Division by a Monomial
Example 48a 2
– 32ab
8a
Divide each TERM 48a2/8a – 32ab/8a or
Step
Step in the 6 4
11 numerator by the = 48(a)(a) - 32ab
denominator 8a 8a
Step Cancel Factors
Step
22 in the numerator = 6a – 4b
and denominator
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 Algebra
Algebra 2-12
Algebra

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Multiplying Polynomials
What
Whatisisthis
this
Example -x(2x2 – 3x – 1) Expression
Expression
called?
called?

Multiply each
Multiply each term
term in
in the
the TRINOMIAL
TRINOMIAL by (–x)
by (–x)

= (-x)(2x2 ) + (-x)( -3x)+ (-x)(-1)

The product of two negative quantities is positive.

= -2x3 + 3x2 + x
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 Algebra
Algebra 2-13
Algebra

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Substitution
Substitution
Example Evaluate P(1 + rt)
P = $100 r = 0.09 t = 7/12 77 Months
Months

= $100 [1 + 0.09*(7/12)] Think

Think
105.25
Use Calculator
BEDMAS
BEDMAS
.09 *
= $100[1.0525] 7/12
== $105.25
$105.25 +1 =
* 100 =
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 Algebra
Algebra 2-14
Algebra

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Exponents Rule of
(1 + i) 20
33
44
33 *3
22
*3 33 (1 + i)
(1 + i)8
20
(3
(3 ))
22 44

Base 3 = 32 + 3 =
(1+ i)20-8
=
32*4
Exponent 34
i.e. 3*3*3*3
= 35 =
38
=
(1+ i) 12
Power ==81 81 ==243
243 == 6561
6561
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More
 Algebra
Algebra 2-15
Algebra

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Exponents Rule of
3x6y3 2
x2z3

Simplifyinside
Simplify inside Squareeach
Square eachfactor
factor Simplify
Simplify
thebrackets
the bracketsfirst
first
X4
3x6y3 2 3x4y3 2 3 2 4*2 3* 2
x y 8 6
9x y
= = =
x2z3 z 3
Z 3*2 z 6

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 Algebra
Algebra 2-16
Algebra

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Exponents Rule of
…to (a) evaluate (1.62)5
Use Calculator
1.62 5
11.56
11.56
…to (b) evaluate (1.62)-5

1.62 5
0.0896
0.0896
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 Algebra
Algebra 2-17
Algebra

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LO 2.

Solving Linear Equations

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 Algebra
Algebra 2-18
Algebra

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Solving Linear Equations

in one Unknown
Equality in Equations

A+9 137

Expressed as: A + 9 = 137

A = 137 – 9
A = 128
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 Algebra
Algebra 2-19
Algebra

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Solving Linear Equations

in one Unknown
Solve for x from the following: x = 341.25 + 0.025x

Collect like Terms x = 341.25 + 0.025x

x - 0.025x = 341.25
11 –– 0.025
0.025 0.975x = 341.25

Divide both x = 341.25 xx == 350

sides by 0.975 0.975
350
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 Algebra
Algebra 2-20
Algebra

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for the Unknown

Barbie and Ken sell cars at the Auto World.

Barbie sold twice as many cars as Ken.

In April they sold 15 cars.

How many cars did each sell?

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 Algebra
Algebra 2-21
Algebra

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Barbie sold twice as many cars as Ken.

In April they sold 15 cars.

How many cars did each sell?

Unknown(s) Cars Variable(s)
Barbie 2C
Ken C
2C + C = 15 Barbie == 22 C
Barbie C == 10
10 Cars
Cars
3C = 15
Ken
Ken == C
C == 55 Cars
Cars
C = 5
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 Algebra
Algebra 2-22
Algebra

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You pay 38% income tax on any additional

earnings. You have an opportunity to work overtime
@ 1.5 times your base wage of $23.50 per hour.

Rounded to the nearest quarter-hour,

how much overtime must you work to earn enough
money(after tax) to buy a canoe that
costs $2,750, including sales tax?

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 Algebra
Algebra 2-23
Algebra

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Tax Rate 38% on any additional earnings

Overtime Rate =$23.50 * 1.5 times
= $35.25

Total Earnings Less 38% of Total Earnings = After Tax Income

1 - .38 = .62
Overtime Rate =$35.25 * .62 = $21.86 Net Earnings
If Canoe costs $2,750, then $2,750/ $21.86
= 125.8 Overtime Hours
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 Algebra
Algebra 2-24
Algebra

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LO
LO 3.
3.

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 Algebra
Algebra 2-25
Algebra

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Monday’s Sales were $1000 and grow to $2500

the next day. Find the percent change.
$ % (/100)
Initial Value 1000 100 1
Final Value 2500 250 2.5
Change 1500 150 1.5
100% x
= Cross - multiply
1000 2500
X = 2500*100% / 1000 = 250%
…Also
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 Algebra
Algebra 2-26
Algebra

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Monday’s Sales were $1000 and grow to $2500

the next day. Find the percent change.

Thismethod
This methodisisreferred
referred Initial(Base)Value $ 1000
toas
to as Final Value 2500
BaseMethod
theBase
the Method Difference $ 1500

% change = Difference $ 1500

% change =
Base $ 1000
= 1.5 or 150% Increase
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 Algebra
Algebra 2-27
Algebra

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In the making of dried fruit, 15kg. of fruit

shrinks to 3 kg. Find the percent change.
Kg. % (/100)
Initial Value 15 100 1
Final Value 3 20 .2
Difference 12 80 .8
x =
3
Cross - multiply
100% 15
X = 3*100% / 15 = 20%
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 Algebra
Algebra 2-28
Algebra

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In the making of dried fruit, 15kg. of fruit

shrinks to 3 kg. Find the percent change.

Initial(Base)Value 15
Final Value 3
% change = Difference Difference 12
Base
12
% change =
15
= .8 or 80% Decrease
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 Algebra
Algebra 2-29
Algebra

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A union signed a three year collective

agreement that provided for wage increases
of 3%, 2%, and 1% in successive years.
An employee is currently earning
$16 per hour.
What will the wage per hour be at the end of
the of the term of the contract?
This can be solved in a single step!

= $16(1 + 3%)(1 + 2%)(1 + 1%)

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Solve
 Algebra
Algebra 2-30
Algebra

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= $16(1 + 3%)(1 + 2%)(1 + 1%)

= $16(1 + .03)(1 + .02)(1 + .01)

= $16(1.03)(1.02)(1.01)
1st Year = $16.48(1.02)(1.01)
2nd Year = $16.8096(1.01)
3rd Year = $16.977 or $16.98
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 Algebra
Algebra 2-31
Algebra

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LO 4.

Investment

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 Algebra
Algebra 2-32
Algebra

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You hold an investment for a period of 4 years.

Rates of return for each year are 4%, 8%, -10%
and 9% respectively.
If you invested $1000 at the beginning of
the term, how much will you have at the
end of the last year?

Solve
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 Algebra
Algebra 2-33
Algebra

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You hold an investment for a period of 4 years.

Rates of return for each year are 4%, 8%, -10% and 9%
respectively. If you invested $1000 at the beginning of the
term, how much will you have at the end of the last year?

Year 1 Year 2 Year 3 Year 4

$1000 $1040 $1123.20 $1010.88
$1000 * $1040 * $1123.20 * $1010.88 *
(1 + .04) (1 + .08) (1 - .10) (1 +.09)
= $1040 = $1123.20 = $1010.88 = $1101.86
Includes Interest earned during the period……………………….
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…Alternative
 Algebra
Algebra 2-34
Algebra

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You hold an investment for a period of 4 years.

Rates of return for each year are 4%, 8%, -10% and 9%
respectively. If you invested $1000 at the beginning of the
term, how much will you have at the end of the last year?

Alternative Solution
Solve for
Solve for all
all 44 years
years at
at once!
once!

1000(1.04) (1.08)(.90)(1.09) = $1101.86

1 -10%
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 Algebra
Algebra 2-35
Algebra

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A chartered bank is lowering the interest rate

on its loans from 9% to 7%.
What will be the percent decrease in the interest
rate on a given balance?

% change = Difference = .07 - .09 = -.02

Base .09 .09
-
= .2222 or
22.22% Decrease
Increase in Interest Rate
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 Algebra
Algebra 2-36
Algebra

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A chartered bank is increasing the interest rate

on its loans from 7% to 9%
What will be the percent increase in the interest
rate on a given balance?

% change = Difference = .09 - .07 = .02

Base .07 .07

=.2857 or
28.57% Increase
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 Algebra
Algebra 2-37
Stocks
Stocks
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X Company
Balance Sheet

Shareholders’ Equity Shares of

Shares of
Capital Stock Ownership
Ownership
Preferred Stock of aa company
company
of
Common Stock

……nonovoting
votingrights
rights hasvoting
…has votingrights
rights
…
but
but
……has
has preference
preferenceover
over …getsdividends
…gets dividends
CommonStock
Common Stock AFTERpreference
AFTER preference
ingetting
in gettingdividends!
dividends! shareholders!
shareholders!
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 Algebra
Algebra 2-38
Stocks
Stocks
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X Company
Income Statement

Gross Profit
Operating Expenses
Net Profit

Dividends - Payments to shareholders from Net Profits

Dividends in arrears - Payments owed to
*Cumulative Preferred shareholders
*Cumulative Preferred shareholders
… are entitled to a specific amount of dividends each year
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 Algebra
Algebra 2-39

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A Stock
A Stock Exchange
Exchange
… an
… an orderly
orderly trading
trading place
place for
for stocks!
stocks!

…people who buy and

sell stock on the floor
of the exchanges.
They charge
a commission for
Stock Brokers
trading stocks.
Investors

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 Algebra
Algebra 2-40
Stock Quotation
Stock Quotation Calculations
Calculations
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PE Ratio? Earning
t o c k s
S per shar
i e l d? e?
Y

k
Stoc Investors
Yield Annual dividend per share $.10
Closing price per share = $41.125 =
.3%

PE Ratio
Closing price per share $41.125
Annual earnings per share = $1.11 = 37
Earnings Annual earnings
per share $100,000
= = $0.10
Total # of shares outstanding 1,000,000
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 Algebra
Algebra 2-41

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Orders in multiples of 100, 200, 400, etc.

… fewer than 100 shares.

(…there is an additional commission fee of 1%!)

If you buy 100(or 130) shares at $62.50 per share
with a 2% commission, calculate your total cost.
100 * $62.50 = $6,250 130 * $62.50 = $8,125.00
.02 * $8,125 = 162.50
.02 * $6,250 = 125
$6,375 .01 * $1,875 = 18.75
$8,306.25
30* $62.50
30* $62.50 == $1,875
$1,875
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 Algebra
Algebra 2-42

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Suppose you bought 100 shares at $52.25 and sold

them 1 year later at $68. With a 1% commission rate
buying and selling the stock and a current $.10 dividend
per share in effect, what was your return on investment?
Bought Sold
100 shares at $52.25 = $5,225.00 100 shares at $68 = $6,800
Commission at 1% = 52.25 Commission at 1% = - 68
Total Costs $5,277.25 Net Receipts $6,732

Net Receipts $6,732.00

- 5,277.25 $1,554.75
Total Costs
Net Gain $1,454.75 $5,277.25
Dividends + 100.00 (100 * $.10) 29.46% ROI
Total Gain $1,554.75
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 Algebra
Algebra 2-43

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This completes Chapter 2

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