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Contemporary Business Mathematics

with Canadian Applications


Ninth Edition

S. A. Hummelbrunner/K. Suzanne Coombs

PowerPoint: D. Johnston, Revised by P. Au

Chapter 2 Review of Basic Algebra

Copyright 2012 Pearson Canada Inc.

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Objectives
After completing chapter two, the student will be able to:

Simplify algebraic expressions. Evaluate expressions with positive, negative, and exponent zero. Use a calculator to evaluate expressions with fractional exponents. Write exponential expressions in logarithmic form. (continued)
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Objectives
(continued)

Use a calculator to determine the value of natural logarithms. Solve algebraic equations using addition, subtraction, multiplication, division and formula rearrangement. Solve word problems by creating equations.

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Formula Simplification You can combine like terms.


3x + 2x + 7x = 12x 6x - 4y -2 x +8y = 4x + 4y 7xy - 3xy - xy = 3xy 4c - 5d -3c +4d = c - d 3x2 + 2.5x2 = 5.5x2

Copyright 2012 Pearson Canada Inc.

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Formula Simplification
If brackets are preceded by a + sign, do not change the sign of the terms inside the brackets. (7a - 2b) + (4a -5b) = 11a -7b If brackets are preceded by a - sign, change the sign of each term inside the brackets. (4c - 5d) - (2c -3d) = 2c -2d
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Formula Evaluation
I = 60, R = 0.05, T = 3 P = 1000, A=1500 Formula I RT A 1+RT P(1+RT) Evaluation 60 = 400 .05x3 1500 = 1304.35 1+.05x3 1000(1+.05x3) = 1150
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Exponents
Power an Base a Exponent n The factor a is multiplied by itself n times. POWER = BASE TO THE EXPONENT

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Using Exponents
63 = 6 x 6 x 6 (-2)4 = (-2)(-2)(-2)(-2) (1+i)5 = (1+i)(1+i)(1+i)(1+i)(1+i) (1/4)2 = (.25)(.25)

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Operations with Powers


am x an = a m+n am an = a m-n (am)n = a mn (ab)m = ambm (a/b)m = am/bm a = 1 if a 0
0

23 x 22 = 2 3+2 = 25 2523 = 2 5-3 =22 (23) 2 = 2 (3x2) = 26 (4x5)2 = 42 x 52 (4/2)3 = 43/23 a0 is undefined if a = 0
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Copyright 2012 Pearson Canada Inc.

Negative and Zero Exponents


a -n = 1/an 2 -4 = 1/24 = 1/16 (1+i) -3 = 1/(1+i)3 (1.05)0 = 1 (-4) -2 = 1/(-4)2 = 1/16 () -3 = 1/()3 = 2.37
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Fractional Exponents

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Fractional Exponents

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Examples of Fractional Exponents


49 27 36
(1/2)

= 7 = 1/3 = 216

-(1/3)

(3/2)

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Exponents and Logarithms


Exponential form N=b 8=2
y

Logarithmic form y = log b N 3 = log 2 8

100 = 10

2 = log 10 100

Copyright 2012 Pearson Canada Inc.

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Properties of Logarithms
ln(ab) = ln a + ln b ln(a/b) = ln a ln b Ln(a ) = k ln a
k

ln[(3)(6)] = ln 3 + ln 6 ln (50/3) = ln 50 ln 3 ln (1.03) = 6 ln (1.03)


6

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Equations
An equation is an expression of equality between two algebraic expressions. 3x = 36 2x + 4 = 60 5x - .4 = 2.5

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Solving Equations Using Addition


X-3=9 Add 3 to both sides. X-3+3=9+3 X = 12

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Solving Equations Using Subtraction


X+3=8 Subtract 3 from both sides. X+3-3=8-3 X=5

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Solving Equations Using Multiplication


X =6 3 Multiply both sides by 3. 3 (X) = 6 (3) 3 X = 18
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Solving Equations Using Division


4 X = 24 Divide both sides by 4. 4X = 24 4 4 X=6
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Using Two or More Operations to Solve an Equation


3X-5=2X+6 3X 2X = 6 + 5 X = 11 You can substitute your result back into the original equation to check your answer.
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Solving Word Problems


Step 1 - Describe in words the unknown X. Step 2 - Translate information in the word problem in terms of the unknown X. Step 3 - Set up an algebraic equation matching the expression from step #2 to a specific number. Step 4 - Solve equation, state conclusion, and check result .
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Solving a Word Problem


A VCR was advertised for $110 which represented a reduction of 30% off the original price. Find the original price. Step 1 Let X represent the original price. Step 2 Sales price = X 0.30X Step 3 X 0.30 X = 110 Step 4 0.70 X = 110 X = 110/0.70 = 157.14 Substitute 157.14 back into original statement.
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Summary
Exponential expressions, logarithms, and algebraic equations are important tools in the solution of problems found in business mathematics and finance.

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