North  south  University  
MBA  Program  
MAT501:  Business  Mathematics  
 
 
Lecture  Plan  
Lecture  04:  (Algebra  of  Matrices)  
Lecture  05:  (Exponential  and  Logarithmic  functions)  
Lecture  06:  (Mathematics  of  Finance)  
 
Course  Instructor:  Dr.  Mohammad  Osman  Gani  
         Professor  
                                                               Department  of  Mathematics  
                                                 Jahangirnagar  University  
                             Savar,  Dhaka-­‐1342.  
                                                                                                     E-­‐mail:  [email protected]  
                                         Mobile:  01712-­‐280-­‐992  
 
 
 
 
 
 
 
 
 

 
 
 

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   1  
Lecture-­‐04  
MATRIX  ALGEBRA  
A matrix is an ordered system of numbers arranged in formation of rows and columns,
describing various aspects of a phenomenon inter-related to each other. For example, it is used in
the study of dominance within a group by sociologists, in the study of births and survivals,
marriage and decent, class structure and mobility by demographers, etc.
 

DEFINITION  AND  NOTATIONS  

Definition:  A  rectangular  arrangement  of  numbers  (real  or  complex)  in  m  rows  and  n  columns  is  called  matrix  
of  order  (or  size)  m  by  n,  denoted  by   m × n.  A  general  form  of  the  matrix  of  order   m × n  is  usually  written  
as  

→ Row
⎡a11 a12 ! a1 j ! a1n ⎤
⎢ ⎥
⎢a 21 a 22 ! a 2 j ! a 2 n ⎥
⎢" " " " ⎥
  A = ⎢ ⎥  
⎢a il a i 2 ! a ij ! a in ⎥
⎢ ⎥
⎢" " " " ⎥
⎢a ml
⎣ a m 2 ! a mj ! a mn ⎥⎦

↑
              Column  
The  number   a ij (i = 1,2,..., m and j = 1,2,..., n )  in  this  array  (rectangular  or  square)  of  mn  numbers  is  called  
an  element  of  the  matrix  A.  In  compact  form,  the  matrix  of  order   m × n  is  also  written  as  :  

  A = (a ij )m×n , i = 1,2,..., m; j = 1,2,..., n.  

In  this  double  subscript  notation,  the  first  subscript  indicates  the  row  and  the  second  subscript  indicates  the  
column  in  which  the  element  lies.  For  example,   a ij is  an  element  of  matrix  appearing  in  ith  row  and  jth  column.  

Remarks:  A  matrix  is  not  a  number.  It  has  got  no  numerical  value.  For  example,  5  is  simply  a  number,  but  in  
the  notation  of  matrix  [5]  is  a  matrix  of  order   1× 1.  

Notation:  A  matrix  is  some  times  represented  by  pairs  of  parentheses  (  )  or  a  pair  of  double  bars    or  a  pair  

of  brackets   [ ].  Matrices  are  generally  denoted  by  capital  letter  of  English  alphabet  such  as  
A, B, C, X, Y,  etc.,  and  their  elements  by  corresponding  small  letters   a , b, c etc.  For  example,  the  following  
matrices  

⎡1 3 6 ⎤ ⎛1 3 6 ⎞ 1 3 6 ⎡a b c ⎤

  A = ⎢ ⎥ or   ⎜⎜ ⎟ or   , B = ⎢  
⎣4 − 2 2⎦ ⎝ 4 − 2 2 ⎟⎠ 4 −2 2 ⎣d e f ⎥⎦

have  two  rows  and  three  columns.  Therefore,  A  and  B  are  matrices  of  order   2 × 3 .  

TYPES OF MATRICES
Equal  Matrices:  Two  matrices  are  said  to  be  equal  if  and  only  if  

(a) they  are  of  the  same  order,  i.e.  they  have  the  same  number  of  rows  and                    columns  and    
(b) each  element  of  one  is  equal  to  the  corresponding  element  of  the  other.  
Given two matrices A and B.
⎡a b⎤ ⎡1 − 1 ⎤
  A = ⎢ ⎥ , B = ⎢3  
⎣d e ⎦ ⎣ 2⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   2  
The  matrix  A  is  of  order   2 × 2  and  B  is  also  of  the  order   2 × 2, so  A  and  B  are  equal  if  

  a = 1, b = −1 , d = 3, e = 2  

Square  matrix:  An   m × n  matrix  A  is  said  to  be  a  square  matrix  if   m = n , i.e.,  number  of  rows  is  equal  to  the  
number  of  columns.  

Thus,  the  matrix   A = (a )ij n×n , i = 1,2,..., n; j = 1,2,..., n.  is  a   n × n  square  matrix.  

For  example,  the  following  matrices:  

⎡a a12 ! a1n ⎤
⎡a11 a12 a13 ⎤ ⎢ 11 ⎥
⎡a11 a12 ⎤ ⎢ ⎥ ⎢a21 a22 ! a2n ⎥
⎢ ⎥ , a21 a22 a23 ⎥ , are square matrices.  
⎣a21 a22 ⎦2×2 ⎢⎢ ⎢" " " ⎥
⎣a31 a32 a33 ⎥⎦3×3 ⎢ ⎥
⎣an1 an2 ! ann ⎦n×n

In   a   square   matrix   of   order   n,   elements   a ij for   which   i = j, i.e.  the   elements   a11, a 22 ,..., a nn  are   known   as  
diagonal   elements   and   the   line   along   which   the   above   elements   lie   is   called   the   principal   diagonal   or   the  
diagonal  of  the  matrix.  For  example,  the  matrix  

⎡ 3 4 5 ⎤
 
⎢ 6 2 3⎥⎥  
⎢
⎢⎣− 2 5 1⎥⎦ 3×3

is  the  square  matrix  of  order  3,  in  which  the  diagonal  elements  are  3,2,  and  1.  

Row   and   column   matrices:   A  matrix   (a )ij 1×n in  which  there  is  only  one  row  is  called  a  row  matrix.  A  matrix  

(a ) ij m×1 in  which  there  is  only  one  column  is  called  a  column  matrix.    

A  row  matrix  is  also  called  row  vector  and  a  column  matrix  is  also  called  column  vector.  

Example:  (i)  The  matrix   A = [3 6 2]  is  a   1× 3  matrix  or  row  matrix  (or  row  vector).  

⎡2⎤
         (ii)  The  matrix   A = ⎢ ⎥  is  a   2 × 1  matrix  or  column  matrix  (or  column  vector).  
⎣1 ⎦
Null  Matrix:  A  matrix  in  which  every  element  is  zero  is  called  a  zero  (or  null)  matrix  and  is  denoted  by  0.  

⎡0 0 0⎤
For  example:   A = ⎢ ⎥ is  a  null  matrix.  
⎣0 0 0⎦

Diagonal  matrix:  A  square  matrix   (a )ij n×n is  called  a  diagonal  matrix  if  each  of  its  non-­‐diagonal  element  is  zero  

⎡a11 0 0 ⎤
⎢
i.e.  if   a ij = 0 when   i ≠ j. Thus,  the  matrix   A = 0 a 22 0 ⎥⎥  
⎢
⎢⎣0 0 a 33 ⎥⎦

is  a  diagonal  matrix  of  order  3,  and  it  can  be  written  as  diag.   [a11 a 22 ! a 33 ]  

Scalar  matrix:  A  diagonal  matrix  whose  diagonal  elements  are  all  equal  is  called  a  scalar  matrix.  i.e.  a  square  
matrix  where  diagonal  elements  are  all  equal  and  the  remaining  elements  are  zero  is  a  scalar  matrix.  Thus,  
⎡a 0 0 ⎤
⎢
the  matrix   A = 0 a 0 ⎥⎥  is  a  scalar  matrix  of  order  3.  
⎢
⎢⎣0 0 a ⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   3  
Unit   (or   Identity)   matrix:   A   square   matrix   where   diagonal   elements   are   unity   (or   one)   and   remaining  
elements  are  zero  is  called  a  unit  (or  identity)  matrix  

A  square  matrix   A = (a )
ij n×n is  a  unit  matrix  if  (i)   a ij = 1  when   i = j, and    (ii)   a ij = 0 when   i ≠ j.  

Such  a  matrix  is  denoted  by   I n .  For  example,  

⎡1 0 0⎤
⎡1 0⎤
I 2 = ⎢ ⎥ , I3 = ⎢⎢0 1 0⎥⎥ are unit matrices of order two and three,  
⎣0 1⎦ 2×2
⎢⎣0 0 1⎥⎦ 3×3

respectively.  

Symmetric  matrix:  A  matrix  is  said  to  be  symmetric,  if  it  is  

(i) a  square  matrix  and  

(ii) a ij = a ji , i.e.  (i,j)th  element  is  the  same  as  the  (j,i)th  element.  
In  other  words,  a  symmetric  matrix  does  not  change  if  we  interchange  rows  and  columns.  For  example,  the  
following  two  matrices  

⎡a h g ⎤
⎡a h ⎤ ⎢
  ⎢h , h b f ⎥⎥  
⎣ b⎥⎦ ⎢
⎢⎣g f c ⎥⎦

are  symmetric  matrices  because   a12 = a 21, a13 = a 31 and  so  on.  

Skew   symmetric   matrix:   A   square   matrix   A = (a )

ij n×n is   said   to   be   skew   symmetric,   if   a ij = −a ji , i.e.   (i,j)th  
element  is  the  negative  of  (j,i)th  element.  

If  we  put   j = i ,  we  have   a ii = −a ii = 0  which  implies  that  the  elements  of  the  diagonal  of  skew  symmetric  
are  all  zero.  For  example,  matrices  

⎡ 0 a b⎤
⎡ 0 a ⎤ ⎢
  ⎢− a , −a 0 c ⎥⎥  
⎣ 0 ⎥⎦ ⎢
⎢⎣− b −c 0 ⎥⎦

are  skew  symmetric  matrices  because   a12 = −a 21 , a11 = a 22 = a 33 = 0, a13 = −a 31.  

Sub  Matrix:  A   matrix   which   is   obtained   from   a   given   matrix   by   deleting   any   number   of   rows   and   any   number  
of  columns  is  called  a  sub  matrix  of  the  given  matrix.  

⎡5 3 2 ⎤
⎢
For  example,  if  we  delete  first  row  and  first  column  from  the  matrix   1 1 2 ⎥⎥  
⎢
⎢⎣7 3 4⎥⎦

⎡1 2⎤
of  order   3× 3 ,then  the  matrix  so  obtained   ⎢ is  the  sub-­‐matrix  of  the  given  matrix.  
⎣3 4 ⎥⎦

Upper   and   lower   triangular   matrices:   Upper  triangular  matrix  is  a  square  matrix  in  which  all  the  elements  
below  the  principal  diagonal  are  zero,  i.e.,   a ij = 0  for  all   i > j .  

Lower  triangular  matrix  is  a  square  matrix  in  which  all  the  elements  above  the  principal  diagonal  are  zero,  i.e.  
a ij = 0  for  all   i < j.  

For  example,  the  following  two  matrices  

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   4  
 ⎡a11 0 0 ! 0 ⎤
⎡a11 a12 a13 ! a1n ⎤ ⎢a
⎢0 ⎥ a 22 0 ! 0 ⎥⎥
 
⎢ a 22 a 23 ! a 2 n ⎥  and   ⎢ 21  
⎢! ! ! ! ! ⎥
⎢⎣! ! ! ! ! ⎥⎦ n×n ⎢ ⎥
⎣a n1 a n 2 ! ! a nn ⎦ n×n

are  upper  and  lower  triangular  matrices,  respectively.  

A  triangular  matrix,   A = (a )ij n×n is  called  a  strictly  triangular  if   a ij = 0  for  all   i = 1,2,..., n.  

ALGEBRA OF MATRICES
In  the  algebra  of  matrices,  we  shall  define  mathematical  operations  on  matrices,  which  enable  us  to  combine  
matrices  so  as  to  produce  new  matrix.  The  main  operations  are:  

(i) Addition  and  subtraction  of  matrices  

(ii) Scalar  multiplication  i.e.,  multiplication  of  a  matrix  by  a  scalar.  
(iii) Multiplication  of  matrices.  
 

Addition  and  Subtraction  of  Matrices  

 

Addition:   The  sum  of  two  matrices  of  the  same  order  is  obtained  by  adding  their  corresponding  elements  and  
their  sum  is  said  to  be  defined  as  the  matrix  of  the  same  order.  

[ ] [ ]
If   A = a ij  and   B = b ij  are   two   matrices   of   the   same   order   m × n ,   then   their   sum   is   another   matrix  

C = [c ] ,  where   c = a
ij m×n ij ij + b ij , i.e.  each  element  of  C  is  the  sum  of  the  corresponding  elements  of  A  and  B  
and  is  denoted  by   A + B.  

[ ]  and   B = [b ]  be   two  

Subtraction:   Let   A = a ij ij matrices   of   same   order   m × n .   Then  

C = A − B = A + (− B) = [a ] + [− b ] = [a − b ] ij m×n ij m×n ij ij m×n  i.e.   the   difference   A − B  is   obtained   by  

subtracting  each  element  of  B  from  the  corresponding  element  of  A.  

⎡3 2 0⎤ ⎡1 − 1 0 ⎤

Example   1   :   If   A = ⎢ ⎥   a nd   B = ⎢2  are   two   matrices   of   same   order.   then  
⎣2 5 − 1⎦ ⎣ 0 3⎥⎦
⎡3 + 1 2 − 1 0 + 0⎤ ⎡4 1 0 ⎤
A + B = ⎢ =  
⎣2 + 2 5 + 0 − 1 + 3⎥⎦ ⎢⎣4 5 2⎥⎦

⎡3 − 1 2 − (− 1) 0 − 0 ⎤ ⎡2 3 0⎤

and       A − B = ⎢ =  are  two  matrices  of  order    
⎣2 − 2 5−0 − 1 − 3⎥⎦ ⎢⎣0 5 − 4⎥⎦

Scalar Multiplication of a Matrix

[ ]
Definition: If A = a ij is an m × n matrix and k is a real number (also called a scalar), then kA is
defined as the matrix each element of which is k times the corresponding element of the matrix
A, i.e. kA = ka ij [ ] m×n
,

⎡2 3 5⎤ ⎡4 6 10 ⎤

For example, if A = ⎢ ⎥ , then 2A = ⎢ .
⎣6 7 8⎦ ⎣12 14 16⎥⎦
⎡0 2 3 ⎤ ⎡7 6 3⎤
Example-2: If A = ⎢ ⎥ and B = ⎢ , find the value of 2A + 3B.
⎣2 1 4⎦ ⎣1 4 5⎥⎦

⎡0 2 3⎤ ⎡0 4 6⎤ ⎡7 6 3⎤ ⎡21 18 9 ⎤

Solution: 2A = 2⎢ = ,3B = 3⎢ =
⎣2 1 4⎥⎦ ⎢⎣4 2 ⎥
8⎦ ⎣1 4 5⎥⎦ ⎢⎣3 12 15⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   5  
 ⎡0 4 6⎤ ⎡21 18 9 ⎤ ⎡21 22 15 ⎤
∴ 2A + 3B = ⎢ + = .
⎣4 2 8⎥⎦ ⎢⎣3 12 15⎥⎦ ⎢⎣7 14 23⎥⎦
⎡ 2 −1 3 ⎤ ⎡6 −2 7 ⎤
Example-3: If A = 4 ⎢ 2 0⎥ and B = ⎢⎢8
⎥ 0 9 ⎥⎥ , find a matrix X such that
⎢
⎢⎣− 2 7 3⎥⎦ ⎢⎣3 1 − 5⎥⎦
2A + 3X = 5B.
Solution: Given that 2A + 3X = 5B. Therefore
⎡6 −2 7 ⎤ ⎡ 2 −1 3 ⎤
3X = 5B − 2A = 5 ⎢8 0 9⎥⎥ − 2⎢⎢ 4 2 0⎥⎥
⎢
⎢⎣3 1 − 5 ⎥⎦ ⎢⎣− 2 7 3⎥⎦
⎡30 − 10 35 ⎤ ⎡ 4 −2 6 ⎤ ⎡26 −8 29 ⎤
= ⎢⎢40 0 45 ⎥⎥ − ⎢⎢ 8 4 0 ⎥⎥ = ⎢⎢32 −4 45⎥⎥
⎢⎣15 5 − 25⎥⎦ ⎢⎣− 4 14 6⎥⎦ ⎢⎣19 −9 − 31 ⎥⎦
⎡26 −8 29 ⎤ ⎡26 / 3 −8/3 29 / 3⎤
1 ⎢
or, X = 32 −4 45 ⎥⎥ = ⎢⎢32 / 3 − 4/3 45 / 3⎥⎥
3 ⎢
⎢⎣19 −9 − 31⎥⎦ ⎢⎣19 / 3 −9/3 − 31 / 3 ⎥⎦

⎡a + b 2 ⎤ ⎡6 2⎤

Example-4: If ⎢ ⎥ = ⎢ , find the values of a and b.
⎣5 ab ⎦ ⎣5 8 ⎥⎦
Solution: Since the corresponding elements of two equal matrices are equal, therefore
⎡a + b 2 ⎤ ⎡6 2⎤
⎢5 ⎥ = ⎢
⎣ ab ⎦ ⎣5 8 ⎥⎦
or, a + b = 6 and ab = 8 ⇒ a + (8 / a ) = 6 [∴ab = 8 or, b = 8 / a]
⇒ a 2 + 8 = 6a ⇒ a 2 − 6a + 8 = a or, (a − 4)(a − 2) = 0, i.e.a = 2,4.
Putting a = 2 and 4 in ab = 8, we obtain b = 4 for a = 2 and b = 2 for a = 4
Hence, a = 2, b = 4 or a = 4, b = 2.
⎡ x z ⎤ ⎡1 − 1 ⎤ ⎡3 5 ⎤
Example-5: Find x, y, z, t if 2⎢ ⎥ + 3⎢ ⎥ = 3⎢
⎣ y t ⎦ ⎣0 2⎦ ⎣4 6⎥⎦
Solution: The given matrix equation can be written as
⎡2x 2z ⎤ ⎡3 − 3⎤ ⎡9 15⎤ ⎡2x + 3 2z − 3⎤ ⎡9 15⎤
⎢2 y 2t ⎥ + ⎢0 ⎥ = ⎢ ⎥
6⎦ ⎣12 18 ⎦ ⎣2 y
⇒ ⎢ =
2t + 6 ⎥⎦ ⎢⎣12 18 ⎥⎦
⎣ ⎦ ⎣
Equating corresponding terms on both sides, we get
2x + 3 = 9,2z − 3 = 15,2 y = 12 and 2t + 6 = 18
Solving them, we get x = 3, z = 9, y = 6 and t = 6 [Ans]

⎡7 0⎤ ⎡3 0⎤

Example-7: Find X and Y if X + Y = ⎢ ⎥ and X − Y = ⎢ .
⎣2 5⎦ ⎣0 3⎥⎦
⎡7 0⎤ ⎡3 0⎤
Solution: We have X + Y = ⎢ ⎥ and X − Y = ⎢
⎣2 5⎦ ⎣0 3⎥⎦
⎡7 0⎤ ⎡3 0⎤
Therefore (X + Y ) + (X − Y ) = ⎢ +
⎣2 5⎥⎦ ⎢⎣0 3⎥⎦
⎡7 + 3 0 + 0⎤ ⎡10 0 ⎤ 1 ⎡10 0 ⎤ ⎡5 0⎤
⇒ 2 X = ⎢ ⎥ = ⎢ ⎥ ⇒ X = ⎢ = ⎢
⎣2 + 0 5 + 3⎦ ⎣2 8⎦ 2 ⎣2 8⎦ ⎣1 4 ⎥⎦
⎥
7 0⎤ ⎡3 0⎤
and (X + Y ) − (X − Y ) = ⎡⎢ ⎥ − ⎢
⎣2 5⎦ ⎣0 3⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   6  
 ⎡7 − 3 0 − 0⎤ ⎡4 0 ⎤ 1 ⎡4 0⎤ ⎡2 0⎤
⇒ 2Y = ⎢ ⎥ = ⎢ ⎥ ⇒ Y = ⎢ =
⎣2 − 0 5 − 3⎦ ⎣2 2⎦ 2 ⎣2 2⎥⎦ ⎢⎣1 1 ⎥⎦
⎡5 0⎤ ⎡2 0⎤
Thus, X = ⎢ ⎥ and Y = ⎢1 1 ⎥
⎣1 4 ⎦ ⎣ ⎦

EXERCISE-1
⎡0 2 3 ⎤ ⎡7 6 3⎤
1. If A = ⎢ ⎥ , B = ⎢ , find the matrix 2A − 3B.
⎣2 1 4⎦ ⎣1 4 5⎥⎦
⎡ 3 −7 5 ⎤ ⎡ 6 −2 − 7⎤
⎢
2. If A = 4 −2 ⎥ ⎢
10⎥, B = ⎢− 8 8 0 ⎥⎥
⎢
⎢⎣− 2 7 3 ⎥⎦ ⎢⎣ 5 1 − 3 ⎥⎦
find the matrix X such that 3 A + 5 X = 7 B.
3. Find the value of x, y, z and a which satisfy the matrix equation
⎡ x + 3 2 y + x ⎤ ⎡0 − 7 ⎤
(a) ⎢ =
⎣z − 1 4a − 6 ⎥⎦ ⎢⎣3 2a ⎥⎦
⎡5 2⎤ ⎡3 6⎤
(b) Find matrices X and Y, if X + Y = ⎢ ⎥ and X − Y = ⎢ ⎥
⎣0 9⎦ ⎣0 − 1⎦
(c) Find x, y, a and b if
⎡2x − 3y a−b 3 ⎤ ⎡1 −2 3 ⎤
(i) ⎢ =
⎣1 x + 4y 3a + 4b⎥⎦ ⎢⎣1 6 29⎥⎦
⎡3x + 4 y 2 x − 2 y⎤ ⎡2 2 4 ⎤
(ii) ⎢ =
⎣a + b 2a − b 1 ⎥⎦ ⎢⎣5 −5 − 1⎥⎦
4. Solve the matrix equation
⎡ x y⎤ ⎡1 3 ⎤ ⎡0 2⎤ ⎡3 4 ⎤ ⎡1 y⎤ ⎡7 0 ⎤
(a) 2⎢ −4 =5 (b) 2⎢ + =
⎣z t ⎥⎦ ⎢⎣5 0⎥⎦ ⎢⎣4 3⎥⎦ ⎣5 x ⎥⎦ ⎢⎣0 1⎥⎦ ⎢⎣10 5⎥⎦
⎡ x y⎤ ⎡x 6 ⎤ ⎡4 x + y⎤
(c) 3⎢ ⎥ = ⎢ ⎥ + ⎢
⎣z t ⎦ ⎣− 1 2t ⎦ ⎣z + t 3⎥⎦

MULTPLICATION OF MATRICS
If A and B are two matrices such that the number of columns in A is equal to the number of rows
[ ] [ ]
in B, i.e. if A = a ij m×n and B = b jk n×p , then the product of A and B denoted by AB is defined as

C = [cik ]m × p , For example, consider the matrices

⎡4⎤
⎡2 3 1⎤
A = ⎢ ⎥ , B = ⎢⎢6⎥⎥
⎣3 1 0⎦ 2×3
⎢⎣7⎥⎦ 3×1
Here the number of columns in A(= 3) = the number of rows in B and thus, we can evaluate AB.
[ ] [ ]
Let AB = c ij , where c ij is 2×1 matrix. Now to write c ij we take the elements of the first row
of A, i.e., 2, 3, 1 and the elements of first column of B i.e. 4,6,7, and form the product and finally
add them i.e.,
c11 = 2 × 4 + 3× 6 + 1× 7 = 33.
Similarly, c21 = 3× 4 + 1× 6 + 0 × 7 = 18.
⎡4⎤
⎡2 3 1⎤ ⎢ ⎥ ⎡8 + 18 + 7 ⎤ ⎡33⎤
Hence, AB = ⎢ 6 = =
⎣3 1 0⎥⎦ ⎢ ⎥ ⎢⎣12 + 6 + 0⎥⎦ ⎢⎣18 ⎥⎦ 2×1
⎢⎣7⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   7  
REMARKS: The product AB can be calculated if and only if the number of columns in A are
equal to the number of rows in B. The two matrices A and B satisfying this condition are called
comfortable to multiplication.
[ ] [ ]
If A = a ij m×n and B = b jk n×p are two matrices and their rows and columns be denoted by

R1 , R 2 ..., R m and C1 , C2 ..., CP respectively. Then, we have

⎡R 1 ⎤ ⎡R 1C1 R 1C 2 ! R 1C P ⎤
⎢R ⎥ ⎢R C R 2 C 2 ! R 2 C P ⎥⎥
AB = ⎢ 2 ⎥ [C1C 2 ...C P ]n×p = ⎢ 2 1
⎢" ⎥ ⎢" " " ⎥
⎢ ⎥ ⎢ ⎥
⎣R m ⎦ m×n ⎣R m C1 R m C 2 ! R m C P ⎦ m×p

⎡1 2 ⎤ ⎡2 3 ⎤
Example-8: If A = ⎢ ⎥ and B = ⎢ , then compute AB.
⎣3 4⎦ ⎣4 7⎥⎦
R1 ⎡1 2⎤ ⎡2c 3c ⎤ ⎡ R1C1 R1C2 ⎤ ⎡1× 2 + 2 × 4 1× 3 + 2 × 7 ⎤
Solution: AB = ⎢ ⎥ = =
R2 ⎢⎣3 4 ⎥⎦ ⎣4 7 ⎦ ⎢⎣ R2C1 R2C2 ⎥⎦ ⎢⎣3 × 2 + 4 × 4 3 × 3 + 4 × 7⎥⎦
⎡2 + 8 3 + 14⎤ ⎡10 17 ⎤
= ⎢ ⎥ = ⎢ .
⎣6 + 16 9 + 18 ⎦ ⎣22 37 ⎥⎦

⎡1 2⎤ ⎡3 1 ⎤

Example: If A = ⎢ , and B = are two matrices, then
⎣3 4 ⎥⎦ ⎢4
⎣ 7⎥⎦
⎡1 2⎤ ⎡3 1 ⎤ ⎡11 15 ⎤ ⎡3 1 ⎤ ⎡1 2⎤ ⎡6 10 ⎤
AB = ⎢ = and BA = ⎢ =
⎣3 4 ⎥⎦ ⎢⎣4 7⎥⎦ ⎢⎣25 ⎥
31⎦ ⎣4 7⎥⎦ ⎢3
⎣ 4 ⎥⎦ ⎢⎣25 36⎥⎦
∴ AB ≠ BA.
⎡1 0 ⎤ ⎡1 0 ⎤
But, if A = ⎢ ⎥ and B = ⎢ are two matrices, then
⎣0 − 2⎦ ⎣0 4⎥⎦
⎡1 0 ⎤ ⎡1 0⎤ ⎡1 0 ⎤ ⎡1 0⎤ ⎡1 0 ⎤ ⎡1 0⎤
AB = ⎢ ⎥ ⎢ =
⎥ ⎢ ⎥ and BA = ⎢0 4⎥ ⎢0 − 2⎥ = ⎢0 − 8⎥
⎣0 − 2⎦ ⎣0 4⎦ ⎣0 − 8⎦ ⎣ ⎦ ⎣ ⎦ ⎣ ⎦
∴ AB = BA. Hence, in general, AB ≠ BA.

⎡1 0 − 2⎤
Example-9: Show that A = ⎢2 2 4 ⎥⎥ satisfies the equation A 2 − 3A + 2I 3 = 0
⎢
⎢⎣0 0 2 ⎥⎦
⎡1 0 − 2⎤ ⎡1 0 − 2⎤
Solution: A = A.A = ⎢2 2
2 4 ⎥⎥ ⎢⎢2 2 4⎥⎥
⎢
⎢⎣0 0 2 ⎥⎦ ⎢⎣0 0 2 ⎥⎦
⎡1 + 0 + 0 0+0+0 − 2 + 0 − 4⎤ ⎡1 0 − 6 ⎤
= ⎢⎢2 + 4 + 0 0+4+0 − 4 + 8 + 8 ⎥⎥ = ⎢⎢6 4 12⎥⎥
⎢⎣0 + 0 + 0 0+0+0 0 + 0 + 4 ⎥⎦ ⎢⎣0 0 4 ⎥⎦
⎡1 0 − 6 ⎤ ⎡1 0 − 2⎤ ⎡1 0 0⎤
∴ A − 3A + 2I 3 = ⎢⎢6
2
4 12⎥⎥ − 3⎢⎢2 2 4 ⎥⎥ + 2⎢⎢0 1 0⎥⎥
⎢⎣0 0 4 ⎥⎦ ⎢⎣0 0 2 ⎥⎦ ⎢⎣0 0 1⎥⎦
⎡1 − 3 + 2 0+0+0 − 6 + 6 + 0 ⎤ ⎡0 0 0⎤
= ⎢⎢6 − 6 + 0 4−6+2 12 − 12 + 0⎥⎥ = ⎢⎢0 0 0⎥⎥ = 0
⎢⎣0 + 0 + 0 0+0+0 4 − 6 + 2 ⎥⎦ ⎢⎣0 0 0⎥⎦
Hence, A 2 − 3A + 2I 3 = 0.

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   8  
 ⎡1 3 2 ⎤ ⎡1 ⎤
Example-10: Find the value of x such that: [1 x 1] ⎢⎢2 5 1 ⎥⎥ ⎢⎢2⎥⎥ = 0
⎢⎣15 3 2 ⎥⎦ ⎢⎣ x ⎥⎦

⎡1 3 2 ⎤ ⎡1 ⎤ ⎡7 + 2x ⎤

[1 x 1]⎢2 5 1 ⎥ ⎢2 ⎥ = 0 or, [1 x 1]⎢⎢12 + x ⎥⎥ = 0
⎢ ⎥ ⎢ ⎥
⎢⎣15 3 2 ⎥⎦ ⎢⎣ x ⎥⎦ ⎢⎣21 + 2x ⎥⎦
or, 7 + 2x + 12 x + x 2 + 21 + 2x = 0 or , x 2 + 16 x + 28 = 0
or, (x + 14)(x + 2) = 0 i.e. x = −2 or –14.

⎡2 0 1⎤
Example-11: Let (x ) = x 2 − 5x + 6. if A = ⎢2 1 3 ⎥⎥ , find f(A).
⎢
⎢⎣1 − 1 0⎥⎦
Solution: First, we note that by f (A) we mean the matrix polynomial A 2 − 5A + 613. That is, to
obtain f (A), x is replaced by A and the constant term is multiplied by the identity matrix of order
same as that of A. Now,
⎡2 0 1⎤ ⎡2 0 1⎤ ⎡5 − 1 1 ⎤
2 ⎢
A = AA = ⎢2 1 ⎥
3⎥ ⎢2⎢ 1 3⎥⎥ = ⎢⎢9 − 2 5⎥⎥
⎢⎣1 − 1 0 ⎥⎦ ⎢⎣1 − 1 0 ⎥⎦ ⎢⎣0 − 1 − 2⎥⎦
⎡− 10 0 − 5 ⎤
⎢
− 5A = ⎢− 10 − 5 − 15⎥⎥
⎢⎣− 5 5 0 ⎥⎦
⎡1 0 0⎤ ⎡6 0 0⎤
6 I 3 = 6 ⎢⎢0 1 0⎥⎥ = ⎢⎢0 6 0⎥⎥
⎢⎣0 0 1⎥⎦ ⎢⎣0 0 6⎥⎦
Therefore,
⎡5 − 1 2 ⎤ ⎡− 10 0 − 5 ⎤ ⎡6 0 0⎤ ⎡ 1 − 1 − 3 ⎤
f (A ) = A − 5A + 6I 3 = ⎢⎢9 − 2 5 ⎥⎥ ⎢⎢− 10 − 5 − 15⎥⎥ +
2 ⎢0
⎢ 6 0⎥⎥ = ⎢⎢− 1 − 1 − 10 ⎥⎥
⎢⎣0 − 1 − 2⎥⎦ ⎢⎣− 5 5 0 ⎥⎦ ⎢⎣0 0 6⎥⎦ ⎢⎣− 5 4 4 ⎥⎦

EXERCISE-II
⎡3 2⎤ ⎡a b⎤
1. If A = ⎢ and B = ⎢3 , find a and b such that AB = BA .Compute 3A + 5B
⎥
⎣4 1 ⎦ ⎣ 5 ⎥⎦
⎡ 1 − 2 3⎤ ⎡1 0 2⎤
2. (a) If A = ⎢ 2 3 − 1⎥ and B = ⎢0 1 2⎥ , find AB and BA and show that AB ≠ BA
⎢ ⎥ ⎢ ⎥
⎢⎣− 3 1 2⎥⎦ ⎢⎣1 2 0⎥⎦

⎡2 8⎤
⎡2 0⎤
(b) Given A = ⎢3 0⎥; B = ⎢ , calculate AB. Can you calculate BA?
⎢ ⎥
⎣3 8 ⎥⎦
⎢⎣5 1⎥⎦
⎡ 2 3 ⎤
3. Let A = ⎢ ⎥ and find f (x ) = x 2 − 4x + 7. Show that f (A) = 0 .
⎣− 1 2⎦
⎡ 1 − 2 3 ⎤
4. If A = ⎢ 2 3 − 1 ⎥, then evaluate A 2 − 3A + 9I 3 .
⎢ ⎥
⎢⎣− 3 1 2⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   9  
TRANSPOSE OF A MATRIX
Definition: The matrix obtained from any given matrix A, by interchanging its rows and
columns is called the transpose of A and is usually denoted by A t or, A T . Thus, if A = a ij is a [ ]
[ ]
matrix of order m × n , then A T = a ij is the transpose matrix of order n × m.
⎡2 1 ⎤
⎡2 3 4⎤
For example, if A = ⎢3 2⎥ , then A T = ⎢
⎢ ⎥ ⎣1 3 5 ⎥⎦ 2×3
⎢⎣4 5⎥⎦ 3×2

⎡3 4 ⎤ ⎡7 8⎤ T

Example-12. If A = ⎢ ⎥ , B = ⎢ ⎥ , then show that (A + B) = A T + B T .
⎣6 2⎦ ⎣4 3⎦
⎡3 4 ⎤ ⎡7 8⎤ ⎡3 + 7 4 + 8 ⎤ ⎡10 12⎤
Solution: A + B = ⎢ ⎥ + ⎢ ⎥ = ⎢ ⎥ = ⎢ ⎥
⎣6 2⎦ ⎣4 3⎦ ⎣6 + 4 2 + 3⎦ ⎣10 5 ⎦
T ⎡10 10⎤
∴ (A + B) = ⎢ ⎥
⎣12 5 ⎦
⎡3 4 ⎤ T ⎡3 6 ⎤
Again A = ⎢ ⎥, A = ⎢4 2⎥
⎣6 2⎦ ⎣ ⎦
⎡7 8⎤ T ⎡7 4⎤
B = ⎢ ⎥, B = ⎢8 3 ⎥
⎣4 3⎦ ⎣ ⎦
⎡3 6 ⎤ ⎡7 4⎤ ⎡3 + 7 6 + 4 ⎤ ⎡10 10⎤
A T + BT = ⎢ ⎥ + ⎢ ⎥ = ⎢ ⎥ = ⎢ ⎥
⎣4 2⎦ ⎣8 3 ⎦ ⎣4 + 8 2 + 3⎦ ⎣12 5 ⎦
Hence, (A + B)T = A T + B T .
⎡ 1 3 ⎤
⎡ 1 − 2 3 ⎤
, B = ⎢⎢− 1 0 ⎥⎥, then show that (AB) = B T A T .
T
Example-13. If A = ⎢ ⎥
⎣− 4 2 5⎦
⎢⎣ 2 4⎥⎦
⎡ 1 3 ⎤
⎡ 1 − 2 3 ⎤ ⎢ ⎡9 15⎤ ⎡9 4⎤
0 ⎥⎥ = ⎢
T
Solution: AB = ⎢ −1 ∴ (AB) = ⎢
⎣− 4 2 5⎥⎦ ⎢ ⎣
⎥
4 8 ⎦ ⎣15 8⎥⎦
⎢⎣ 2 4⎥⎦
⎡ 1 − 4 ⎤
⎡1 − 1 2 ⎤
Again, B = ⎢ T
and A = ⎢− 2
T
2⎥⎥
⎣3 0 4⎥⎦ ⎢
⎢⎣ 3 5 ⎥⎦
⎡ 1 − 4 ⎤
⎡1 − 1 2 ⎤ ⎢ ⎡9 4⎤
− 2 2⎥⎥ = ⎢
T T T
∴ B A = ⎢ ⎥ ⎢ ⎥ = (AB)
⎣3 0 4⎦
⎢⎣ 3 5⎥⎦ ⎣
15 8⎦

Hence, (AB)T = B T A T .

ADJOINT OF A SQUARE MATRIX

Let A = a ij be a square matrix of order n and let A ij be the co-factor of a ij in determinant A.

Then the transpose of the co-factor matrix B = A ij of elements of A is called the adjoint of A,

and is denoted by adj A. Thus, if A = a ij and B = A ij , then

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   10  
 ⎡A11 A 21 ! A n1 ⎤
⎢A A 22 ! A n 2 ⎥⎥
adj A = A ij [ ] T
= ⎢ 12
⎢" " " ⎥
⎢ ⎥
⎣A1n A 2n ! A nn ⎦

INVERSE OF SQUARE MATRIX

Singular and non-singular matrices: A square matrix A is said to be non-singular if A ≠ 0;
otherwise singular.
Definition: Let A be any square matrix of order n. If there exists a square matrix B of order n
which satisfies the relation: AB = BA = I n , where I n is the identity matrix of order n, then B is
called the inverse of A and is denoted by A −1 , i.e., B = A −1 so that, AA −1 = A −1A = I n .
Remarks: 1. A matrix, which has inverse, is also called invertiable.
adj A
2. If A is a square matrix such that A ≠ 0, then A is invertiable and A −1 = .
A
The concept of inverse of a matrix is useful in solving the system of linear simultaneous
equations, input-output analysis and regression analysis. We shall discuss here following two
methods of finding the inverse of a given square matrix:
(i) Adjoint matrix method
(ii) Row transformation method
Remark: The necessary and sufficient condition for a matrix to be invertiable is that it must be
non-singular and only square matrices can have inverse.

METHODS OF COMPUTING THE INVERSE OF A MATRIX

(a) Adjoint Matrix Method
Given a non-singular matrix A of order n. We already know that
A.(adj A) = A .I = (adj A).A
A.(adj A ) (adj A ).A adj A
or, = = I . Hence, A −1 = , provided A ≠ 0.
A A A
" 2 2 0%
$ '
Example-14. Find the inverse of the matrix, A = $ 2 1 1'
$#−7 2 − 3 '&
1 1 2 1 2 1
Solution: A = 2 −2 +0 = 2(− 3 − 2) − 2(− 6 + 7 ) = −12 ≠ 0.
2 −3 −7 −3 −7 2
Since A ≠ 0, matrix A is non-singular. The co-factors A ij of A are

1+1 1 1 1+ 2 2 1 1+3 2 1
A11 = (− 1) = −5, A12 = (− 1) = −1, A13 = (− 1) = 11.
2 −3 −7 −3 −7 2
2+1 2 0 2+ 2 2 0 2+3 2 2
A 21 = (− 1) = 6, A 22 = (− 1) = −6, A 23 = (− 1) = −18
2 −3 −7 −3 −7 2
3+1 2 0 3+ 2 2 0 3+3 2 2
A 31 = (− 1) = 2, A 32 = (− 1) = −2, A 33 = (− 1) = −2.
1 1 2 1 2 1
The adjoint of A is:
⎡A11 A 21 A 31 ⎤ ⎡− 5 6 2⎤
⎢ ⎥
adjA = ⎢A12 A 22 A 32 ⎥ = ⎢− 1 − 6 − 2⎥⎥
⎢
⎢⎣A13 A 23 A 33 ⎥⎦ ⎢⎣ 11 − 18 − 2⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   11  
 ⎡− 5 6 2⎤ ⎡ 5 / 12 − 1 / 2 − 1 / 6⎤
adj A 1 ⎢
A = −1
= − ⎢− 1 − 6 − 2⎥⎥ = ⎢⎢ 1 / 12 1/ 2 1 / 6 ⎥⎥
A 12
⎢⎣ 11 − 18 − 2⎥⎦ ⎢⎣− 11 / 12 3 / 2 1 / 6 ⎥⎦
(b) Row Transformation Method
[ ]
We consider the partitioned matrix A I , where A is non-singular matrix. Applying a sequence
of row transformations (operations) in such a manner that matrix A is changed to I and I is
changed to A −1 .
Example-15. Find the inverse of matrix A by using row transformation method:
⎡1 2 3 ⎤
A = ⎢⎢2 3 2⎥⎥
⎢⎣3 3 4 ⎥⎦
Solution: The inverse of matrix A can be obtained directly by applying row transformations
(operations) on the following matrix:
⎡1 2 3 ⎤ ⎡1 0 0⎤
⎢2 3 2⎥ ⎢0 1 0⎥ ∵ R2ʹ′ → R2ʹ′ = R2 − 2 R1
⎢ ⎥ ⎢ ⎥ R3ʹ′ → R3 − 3R1
⎢⎣3 3 4 ⎥⎦ ⎢⎣0 0 1⎥⎦

⎡1 2 3 ⎤ ⎡ 1 0 0 ⎤
Iteration I: ⎢0 −1 − 4 ⎥⎥ ⎢⎢− 2 1 0⎥⎥ ∵ R 2 → (− 1)R 2
⎢
⎢⎣0 −3 − 5⎥⎦ ⎢⎣− 3 0 1⎥⎦
Applying row operations: R1 → R1 − 2R 2 and R3ʹ′ → R3 + 3R2 , continuing in the same way till
LHS matrix become an identity matrix as shown below:
⎡1 0 0⎤ ⎡− 6 / 7 − 1 / 7 − 5 / 7⎤
Iteration 2: ⎢ ⎥ ⎢ 5 / 7 − 4 / 7 ⎥⎥
⎢0 1 0⎥ ⎢ 2 / 7
⎢⎣0 0 1⎥⎦ ⎢⎣ 3 / 7 1/ 7 1 / 7 ⎥⎦
The inverse of A is given by the right-hand side matrix.
⎡− 6 / 7 − 1 / 7 − 5 / 7 ⎤
Hence, A −1 = ⎢ 2 / 7 5/ 7 − 4 / 7⎥⎥
⎢
⎢⎣ 3 / 7 1 / 7 1 / 7 ⎥⎦

⎡2 − 3⎤
Example-16. Show that A = ⎢ ⎥ satisfies the equation x 2 − 6x + 17 = 0. Hence find A −1 .
⎣3 4 ⎦
⎡2 − 3⎤
Solution: We have A = ⎢
⎣3 4 ⎥⎦
⎡2 − 3⎤ ⎡2 − 3⎤ ⎡− 5 − 18⎤
∴ A2 = A × A = ⎢ × =
⎣3 4 ⎥⎦ ⎢⎣3 4 ⎥⎦ ⎢⎣ 18 7 ⎥⎦
⎡2 − 3⎤ ⎡− 12 18 ⎤
− 6A = (− 6)⎢ =
⎣3 4 ⎥⎦ ⎢⎣− 18 − 24⎥⎦
⎡1 0⎤ ⎡17 0 ⎤
17 I = 17 ⎢ =
⎣0 1⎥⎦ ⎢⎣0 17 ⎥⎦
⎡− 5 − 18⎤ ⎡− 12 18 ⎤ ⎡17 0 ⎤
Now, A 2 − 6A + 17 I 2 = ⎢ + +
⎣ 18 7 ⎥⎦ ⎢⎣− 18 − 24⎥⎦ ⎢⎣0 17 ⎥⎦
⎡− 5 − 12 + 17 − 18 + 18 + 0 ⎤ ⎡0 0⎤
= ⎢ = =0
⎣ 18 − 18 + 0 7 − 24 + 17 ⎥⎦ ⎢⎣0 0⎥⎦
Hence, the matrix A satisfies the equation x 2 − 6x + 17 = 0.

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   12  
Now, A 2 − 6 A + 17 I 2 = 0 ⇒ A 2 − 6 A = − 17 I 2 .
( )
or, A −1 A 2 − 6A = −17 A −1I 2
or, + A −1A 2 − 6A −1A = −17 A −1I 2 ( )
or, A − 6I 2 = −17A −1
1
or, A −1 = − (A − 6I 2 ) = − 1 (6I 2 − A )
17 17
1 ⎧⎡6 0⎤ ⎡2 − 3⎤ ⎫ 1 ⎡ 4 3 ⎤
= ⎨ − ⎬ =
17 ⎩⎢⎣0 6⎥⎦ ⎢⎣3 4 ⎥⎦ ⎭ 17 ⎢⎣− 3 2⎥⎦

EXERCISE-III

⎡1 3 − 1 ⎤
1. Define a non-singular matrix. Show that the matrix ⎢2 4 0⎥⎥ is non-singular. Also find its
⎢
⎢⎣1 1 5 ⎥⎦
inverse.
⎡ 1 4 0 ⎤
2. Find the adjoint of the matrix, A = ⎢− 1 2 2 ⎥ . Hence obtain A −1 .
⎢ ⎥
⎢⎣ 0 0 2⎥⎦
⎡3 2 ⎤ ⎡6 7⎤ −1
3. (a) If A = ⎢ ⎥ and B = ⎢ ⎥ , verify that (AB) = B −1A −1 .
⎣7 5⎦ ⎣8 9 ⎦
⎡ 2 2 1⎤ ⎡1 3 2⎤
⎢ ⎥
(b) If A = − 2 1 2 and B = ⎢1 1 1 ⎥ are two matrices of order three, verify that
⎢ ⎥ ⎢ ⎥
⎢⎣ 1 − 2 2⎥⎦ ⎢⎣2 − 3 − 1⎥⎦
(AB)−1 = B −1A −1.
⎡ 1 3 4 ⎤
−1 −1 T
4. Given the matrix, A = ⎢ 3 − 1 6⎥⎥ , prove that A T ( ) = (A ) .
⎢
⎣⎢− 1 5 1⎥⎦
⎡3 −3 4 ⎤
5. Find the inverse of the matrix, A = ⎢2 −3 4⎥⎥ . Also verify that A −1 = A 3 .
⎢
⎢⎣0 −1 1 ⎥⎦
⎡1 −1 1 ⎤
6. If A = ⎢2 −1 0⎥⎥ , find A 2 and show that A 2 = A −1
⎢
⎢⎣1 0 0 ⎥⎦
⎡1 2 2⎤
7. Let A = ⎢2 1 2⎥ . Prove that A 2 − 4A − 5I = 0 . Hence obtain A −1 .
⎢ ⎥
⎢⎣2 2 1⎥⎦
⎡3 4 ⎤ ⎡2 8⎤
8. (a) Find matrix A such that : A ⎢ ⎥ = ⎢ ⎥ .
⎣6 2⎦ ⎣9 4⎦
⎡1 − 4 ⎤ ⎡− 16 − 6⎤
(b) Find the matrix X for which ⎢ ⎥ X = ⎢
⎣3 − 2⎦ ⎣ 7 2⎥⎦

METHODS OF SOLVING NON-HOMOGENEOUS LINEAR EQUATIONS

The solution of linear non-homogeneous simultaneous equations can be obtained by applying
following methods:
1. Matrix Inverse Method

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   13  
 2. Gauss Elimination Method
3. Cramer’s Rule
1. MATRIX INVERSE METHOD
Example-17: Use matrix method to examine the following system of equations for consistency
or inconsistency : 2x-3y=3, and 4x-y=11.
Solution: The given equations in the matrix form can be written as:
⎡2 − 3 ⎤ ⎡ x ⎤ ⎡ 3 ⎤
⎢4 − 1 ⎥ ⎢ y ⎥ = ⎢11⎥ or , Ax = B
⎣ ⎦ ⎣ ⎦ ⎣ ⎦
⎡2 − 3⎤ ⎡x ⎤ ⎡ 3 ⎤
where A = ⎢ ⎥ , X = ⎢ y⎥ , B = ⎢11⎥
⎣4 − 1⎦ ⎣ ⎦ ⎣ ⎦
2 −3
Since A = =10 (≠ 0), i.e. A is non-singular. A-1 exists and the system is consistent and
4 −1
has a unique solution given by
AX = B or , X = A −1 B. .....(i)
-1
To determine A first we determine matrix of co-factors of cach element of matrix A as follows:
1+1
A11 = (−) (−1) = −1 A12 = (−1)1+2 4 = − 4
A 21 = (1) 2+1 (−3) = 3 A 22 = (−1) 2+2 2 = 2
T
⎡ A A12 ⎤ ⎡ A A21 ⎤ ⎡ − 1 3⎤
∴ adj A = ⎢ 11 ⎥ = ⎢ 11 =
⎣ A21 A22 ⎦ ⎣ A12 A22 ⎥⎦ ⎢⎣− 4 2⎥⎦
adj A 1 ⎡ − 1 3⎤ ⎡ − 1 / 10 3 / 10 ⎤
A −1 = = ⎢ = ....(ii)
A 10 ⎣− 4 2⎥⎦ ⎢⎣ − 4 / 10 2 / 10 ⎥⎦
From (i) and (ii), we get
⎡x ⎤ ⎡ − 1/ 10 3 / 10 ⎤ ⎡ 3 ⎤ ⎡ − 3 / 10 + 33 / 10 ⎤ ⎡3⎤
⎢ y⎥ = ⎢− 4 / 10 2 / 10⎥ ⎢11⎥ = ⎢− 12 / 10 + 22 / 10⎥ = ⎢1⎥
⎣ ⎦ ⎣ ⎦ ⎣ ⎦ ⎣ ⎦ ⎣ ⎦
Hence, the unique solution is given by; x = 3 and y = 1.
Example-18. By matrix method solve the following equations:
5 x − 6 y + 4 z = 15
7 x + 4 y − 3 z = 19
2 x + y + 6 z = 46.

Solution: The given system of equations may be represented in the matrix natations as:
⎡5 − 6 4 ⎤ ⎡ x ⎤ ⎡15 ⎤
⎢7 4 − 3⎥ ⎢ y⎥ = ⎢19 ⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣2 1 6 ⎥⎦ ⎢⎣ z ⎥⎦ ⎢⎣46⎥⎦
or, AX=B or X=A-1 B
5 −6 4
4 −3 7 −3 7 4
Since A = 7 4 −3 = 5 +6 +4 = 135 + 288 − 4 = 419 ≠ 0
1 6 2 6 2 1
2 1 6
Hence, A is non-singular and A-1 exists. The system has the unique solution.
The matrix of co-factors of elements of A is given by
A11 = 27, A12 = − 48 A13 = − 1
A21 = 40, A22 = 22, A23 = − 17
A31 = 2, A32 = 43, A33 = 62.
⎡ A11 A 21 A 31 ⎤ ⎡ 27 40 2 ⎤
adj A = ⎢A12 A 22 ⎥ ⎢
A 31 ⎥ = ⎢− 48 22 43⎥⎥
⎢
⎢⎣A13 A 23 A 33 ⎥⎦ ⎢⎣ − 1 − 17 62 ⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   14  
 ⎡ 27 40 2 ⎤
Adj A 1 ⎢
And A =−1
= ⎢ − 48 22 43⎥⎥
A 419
⎢⎣ − 1 − 17 62⎥⎦

⎡ x ⎤ ⎡ 27 40 2 ⎤ ⎡15 ⎤ ⎡3⎤
⎢ ⎥ 1 ⎢
∴ ⎢ y ⎥ = 419 ⎢ − 48 22 43⎥⎥ ⎢⎢19 ⎥⎥ = ⎢⎢4⎥⎥
⎢⎣ z ⎥⎦ ⎢⎣ − 1 − 17 62⎥⎦ ⎢⎣46⎥⎦ ⎢⎣6⎥⎦
Hence, the unique solution of the system is: x = 3, y = 4, z = 6.

EXERCISE-V
1. Solve by the matrix algebra the system of equations:
(a) 10x1 − 2x 2 = 8;6x1 + 3x 2 = 7
(b) x + y = 10;2x + 2 y = 50.
2. Use matrix method to solve the system of equations:
(a) x + y + z = 6, x − y + z = 2,2x + y − z = 1
(b) 3x + 4y + 5z = 18, 2x − y + 8z = 13, 5x − 2y + 7z = 20
(c) 2 x − y + 3z = 9, x + 3 y − z = 4,3x + 2 y + z = 10
⎡1 −1 0⎤
3. Find the inverse of the matrix ⎢0 1 − 1⎥⎥ and hence solve the system of equations:
⎢
⎢⎣1 0 1⎥⎦
x − y = a , y − z = b, x + z = c
⎡ 7 − 1 − 1⎤
4. Find the inverse of the matrix ⎢10 − 2 1 ⎥ and hence solve the system of equations:
⎢ ⎥
⎢⎣6 3 − 2 ⎥⎦
7 x − y − z = 0, 10 x − 2 y + z = 8. 6x + 3y − 2z = 7.
5. Solve the following equations by using inverse of matrix
(a) 2x − y + 3z = 9, − x + 2 y + z = 6, 3x + y − 4z = −7
(b) 2x + 3y − z = 9, x + y + z = 9, 3x − y − z = −1
(c) 9x + 7 y + 3z = 6, 5x + y + 4z = 1, 6x + 8y + 2z = 4.
ANSWERS
1. (a) x1 = 38 / 42, x 2 = 22 / 42
(b) A = 0, (adj A)B ≠ 0; system of equations is inconsistent
2. (a) x = 1, y = 2, z = 3; (b) x = 3, y = 1, z = 1 (c) x = 1, y = 2, z = 3

APPLICATION OF MATRIX:

Example-1: The sum of three numbers is 6. If we multiply the third number by 2 and add the
first number to the result, we get 7. By adding second and third numbers to three times the first
number, we get 12. Using matrices find the numbers.
Solution: Let the three numbers be x , y and z respectively. Then, given that
x + y + z = 6; x + 2z = 7 and 3x + y + z = 12
The above system of equations can be written in matrix form as:
⎡1 1 1⎤ ⎡ x ⎤ ⎡ 6⎤
⎢1 0 2⎥ ⎢ y ⎥ = ⎢ 7⎥ or, AX = B
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣3 1 1⎥⎦ ⎢⎣ z ⎥⎦ ⎢⎣12 ⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   15  
 ⎡1 1 1⎤ ⎡ x ⎤ ⎡ 6 ⎤
where A = 1 0 2 , X = y and B = ⎢ 7 ⎥
⎢ ⎥ ⎢ ⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣3 1 1⎥⎦ ⎢⎣z ⎥⎦ ⎢⎣12⎥⎦
1 1 1
Now, A = 1 0 2 = 1(0 − 2) − (1 − 6) + 1(1 − 0)
3 1 1
= −2 + 5 + 1 = 4 ≠ 0
So the above system of equations has a unique solution given by, X = A−1B . Let A ij be the co-
factor of a ij in A = a ij . Then.
A11 = −2, A12 = 5, A13 = 1, A 21 = 0, A 22 = −2, A 23 = 2,
A31 = 2, A32 = −1 and A33 = −1
⎡ − 2 0 2⎤
∴ adj A = ⎢⎢ 5 − 2 − 1⎥⎥
⎢⎣ 1 2 − 1 ⎥⎦
⎡ − 2 0 2⎤
1 1
Thus A −1 = adj A = ⎢⎢ 5 − 2 − 1⎥⎥
A 4
⎢⎣ 1 2 − 1 ⎥⎦
⎡ − 2 0 2⎤ ⎡ 6⎤
1 ⎢
and X = A B or X = ⎢ 5 − 2 − 1⎥⎥ ⎢⎢ 7⎥⎥
−1

4
⎢⎣ 1 2 − 1 ⎥⎦ ⎢⎣12 ⎥⎦
⎡ x ⎤ ⎡− 12 + 0 + 24⎤ ⎡3 ⎤
⎢ y ⎥ = 1 ⎢ 30 − 14 − 12 ⎥ = ⎢1 ⎥
⎢ ⎥ 4 ⎢ ⎥ ⎢ ⎥
⎢⎣z ⎥⎦ ⎢⎣ 6 + 14 − 12 ⎥⎦ ⎢⎣2⎥⎦
Equating terms on both sides, we get x = 3, y = 1 and z = 2.
Hence, the three numbers are 3, 1 and 2 respectively.

Example-2: A mixture is to be made of three foods A, B, C. The three A, B, C contain nutrients

P, Q, R as shown below:
Ounces per pound of nutrient
Food Nutrient P Nutrient Q Nutrient R
A 1 2 5
B 3 1 1
C 4 2 1
How to form a mixture which will have 8 ounces of P, 5 ounces of Q and 7 ounces of R?
Solution: Let x , y and z = pounds of food A, B and C, respectively be needed to form the
mixture.
The required relationships can be written as:
x + 3y + 4 z = 8
2 x + y + 2z = 5
5x + y + z = 7
The above system of simultaneous linear equations can be written in matrix form as:
⎡1 3 4⎤ ⎡ x ⎤ ⎡8 ⎤
⎢2 1 2⎥ ⎢ y ⎥ = ⎢5 ⎥ or , AX = B
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣5 1 1⎥⎦ ⎢⎣z ⎥⎦ ⎢⎣7⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   16  
 ⎡1 3 4⎤ ⎡ x ⎤ ⎡8 ⎤
where A = 2 1 2 , X = y and B = ⎢5 ⎥
⎢ ⎥ ⎢ ⎥
⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢⎣5 1 1⎥⎦ ⎢⎣z ⎥⎦ ⎢⎣7⎥⎦

⎡1 3 4⎤
Now A = ⎢⎢2 1 2⎥⎥ = 1(1 − 2) − 3(2 − 10 ) + 4(2 − 5)
⎢⎣5 2 1⎥⎦
= −1 + 24 − 12 = 11 ≠ 0
Let A be the cofactor of a ij . Then, [ ]
A11 = −1, A12 = 8, A13 = −3
A21 = 1, A22 = − 19, A23 = 14,
A31 = 22, A32 = 6 and A33 = − 5
⎡− 1 1 2 ⎤
∴ adj A = ⎢⎢ 8 − 19 6 ⎥⎥
⎢⎣− 3 14 − 5⎥⎦

⎡− 1 1 2 ⎤
1 1 ⎢
−1
Thus, A = adj A =
⎢ 8 − 19 6 ⎥⎥
A 11
⎢⎣− 3 14 − 5⎥⎦
Thus, the solution of the system of equations in given by
⎡− 1 1 2 ⎤ ⎡8 ⎤
1 ⎢ 8 − 19 6 ⎥ ⎢5 ⎥
X = A −1B =
11 ⎢ ⎥ ⎢ ⎥
⎢⎣− 3 14 − 5⎥⎦ ⎢⎣7 ⎥⎦

⎡ x ⎤ ⎡− 8 + 5 + 14 ⎤ ⎡11⎤ ⎡1⎤

1 1
or, ⎢ y ⎥ = ⎢ ⎥ ⎢ ⎥ ⎢ ⎥
⎢ ⎥ 11 ⎢ 64 − 95 + 42 ⎥ = 11 ⎢11⎥ = ⎢1⎥
⎢⎣z ⎥⎦ ⎢⎣− 24 + 70 − 35⎥⎦ ⎢⎣11⎥⎦ ⎢⎣1⎥⎦
Equating terms on both sides, we got X = 1, y = 1and z = 1.
Hence, the mixture is formed by mixing one proud of each of the foods A, B and C.

Example-3: There are two families A and B. There are 4 men, 6 women and 2 children in family
A and 2 men, 2 women and 4 children in family B. The recommended daily allowance for
calories is: Man: 2400, women: 1900, child: 1800 and for proteins is: Man: 55 gm, women: 45
gm and child: 33 gm.
Represent the above information by matrices. Using matrix multiplication, calculate the total
requirement of calories and proteins for each of the two families.

Solution: The members of the two families can be represented by the 2× 3 matrix.
M W C
A ⎡4 6 2⎤
D=
B ⎢⎣2 2 4⎥⎦
and the recommended daily allowance of calories and proteins for each member can be
represented by 3× 2 matrix.
Calories proteins
M ⎡2400 55⎤
E = W ⎢⎢1900 45 ⎥⎥
C ⎢⎣1800 33 ⎥⎦

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   17  
The total requirement of calories and proteins for each of the two families is given by the matrix
multiplication:
Calories proteins
⎡2400 55⎤
⎡4 2⎤ ⎢ 6 A ⎡24600 556⎤
DE = ⎢ 1900 45 ⎥⎥ = ⎢
⎣2 4⎥⎦ ⎢ 2 B ⎣15800 332 ⎥⎦
⎢⎣1800 33 ⎥⎦
Hence, family A requires 24,600 calories and 556 gm proteins and family B requires 15,800
calories and 332 gm proteins.

Example-4: Use matrix multiplication to divide Tk. 30,000 in two parts such that the total
annual interest at 9% on the first part and 11% on the second part amounts Tk. 3060.
Solution: Let the two parts be Tk. x and Tk. (30,000 − x ) respectively. Let A be the matrix
representing these two parts as:
Part I Part II
A = [x 30000 − x]
Let R be the matrix representing the annual interest rates on two parts, i.e.
Part I ⎡0.09 ⎤
R=
Part II ⎢⎣0.11 ⎥⎦
The total annual interest on the two parts is given by the matrix multiplication as:
⎡0.09⎤
AR = [x 30,000 − x ]⎢ ⎥ = Tk.3,060 (Given)
⎣0.11⎦
0.09x + 0.11(30,000 − x ) = 3060
9 11
x+ (30000 − x ) = 3060
100 100
9x + 33,0000 − 11x = 30,6000, i.e. x = 12,000 .
Hence, one part is Tk. 1,200 and second part is Tk .(30,000 − 12,000)Tk .18,000.

Example-5. A trust fund has Tk. 50,000 that is to be invested into two types of bonds. The first
bond pays 5% interest per year and the second bond pays 6% interest per year. Using matrix
algebra, determine how to divide Tk. 50,000 among the two types of bonds so as to obtain an
annual interest of Tk. 2,780.
Solution: Let Tk. x and Tk. (50,000 − x ) be invested in the first and second type of bond,
respectively. The value of these bonds can be written in the form of a row matrix:
A = [x 50,000 − x ]1×2
The amounts received as interest annual from two bonds can be written in the form of a column
matrix:
⎡0.05 ⎤
B = ⎢ ⎥
⎣0.06 ⎦ 2×1
Thus, total interest to be obtained annually from two bonds is given by
⎡0.05⎤
AB = [x 50,000 − x ]⎢ ⎥ = 0.05x + 0.06(50,000 − x ) = 3,000 − 0.01x
⎣0.06⎦
But given that the annual total interest is Tk. 2,780. Therefore
3,000 − 0.01x = 2780
or, x = (3000 − 2780)/ 0.01 = 220 ×100 = Tk.22,000
Hence, the required amount to be invested into two types of bonds as : Tk. 22,000 and Tk.
(50,000 − 22,000) = Tk.28,000 respectively.
Problem-6. A manufacturer produces three products: P, Q and R which he sells in two markets.
Annual sales volumes are indicated as follows:
Markets     Products      

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   18  
   P   Q   R    

I   10,000   2,000   18,000    

II   6,000   20,000   8,000    

If unit sale prices of P, Q and R are Tk. 2.50, 1.25 and 1.50 respectively find the total revenue in
each market will the help of Matrix Algebra.
If the unit costs of the above 3 commodities are Tk. 1.80, 1.20 and 0.80 respectively, find his
gross profits.
Solution: Total revenue in each market is obtained from the matrix product:
⎡10000 6000 ⎤
[2.50 1.25 1.50]× ⎢⎢2000 20000⎥⎥ = [54500 52000]
⎢⎣18000 8000 ⎥⎦
⎡10000 6000 ⎤
Total cost = [1.80 1.20 0.80]× ⎢2000 20000⎥ = [34800 41200]
⎢ ⎥
⎢⎣18000 8000 ⎥⎦
Profit from market A = 54500 − 34800 = 19700
Profit from market B = 52000 − 41200 = 10800
 

Example   10:   A   manufacturer   produces   three   products   P,Q,   and   R,   which   he   sells   in   two   markets   A   and   B.  
Annual  sale  volumes  are  indicated  below:  

Market Product
P Q R
A 10,000 2,000 18,000
B 6,000 20,000 8,000
If unit sale prices of P, Q, R are Tk. 2.50, Tk. 1.25 and Tk. 1.50, respectively, find the total
revenue in each market with the help of matrix algebra.

Example 11: A firm produces three products A, B and C which it sells in two markets. Annual
sales in units are given below:
Market Units sold
A B C
I 8,000 4,000 16,000
II 7,000 18,000 9,000
If the price per unit of A, B and C is Tk. 2.50, Tk. 1.25 and Tk. 1.50 respectively and the
costs per unit are Tk. 1.70, Tk. 1.20 and Tk. 0.80 respectively, find the total profit in each
market by using matrix algebra.
 

 
 
 
 

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   19  
  
Lecture  05  
Exponential  and  Logarithmic  Functions  
 
 
Ø Rules of exponential and logarithmic function
(page 355 & page 364)

Brief Review:

• Index/Exponent:  If  a  positive  integer   a is  multiplied  by  itself  n  times,  we  get  
          a n ,  i.e.,   a.a.a..........n times = a n  
Then  the  constant  𝑎  is  called  the  base  and  the  positive  integer  𝑛  is  called  the  
index  or  exponent  or  power.  For  example:   9 = 3.3 = 32 ,  here  3  is  base  and  2  is  
index  .  
• Fractional   Indices:   In   a   positive   fractional   index   the   exponent   represents   a  
fraction.  For  example:  
1 1
 (i)   2 a = a = a 2 ;  is  called  a  square  root  ;  (ii) 3 a = a 3 ,is  called  a  cubic  root  
1 ! !
   (iii)   n a = a n ; is  called  a  nth  root  or  nth  root  radical.      (iv)       𝑎! = 𝑎 ! .  

• Logarithm:   For   any   number   N,   if   N = a x (a > 0, a ≠ 1),   then   the   index   x   is   called  
the  logarithm  of  the  number   N  to  the  base  a,  and  we  write   x = log a N .  
For examples: If 81 = 34 ⇒ 4 = log3 81, logarithm of 81 to the base 3 is
equal to 4.
• Common Logarithm: The logarithm of a number with ‘10’ as base is called
the common logarithm of that number. Common logarithm log10 x is generally
written as: log x.
For  example:  We  know   10 2 = 100    ∴log10 100 = 2  or,   log100 = 2.  

• Natural   Logarithm:   The   logarithm   of   a   number   to   the   base   ‘e’  

[e = 2.718281 ....... ≅ 2.72]  is   called   natural   logarithm   of   that   number.   Natural  
logarithm   log e x  is  generally  written  as:   ln x    
             For  example:        (i) log e e = ln e = 1      (ii)   y = e x ⇒ x = log e y = ln x .  

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   20  
Ques. What is an exponential function?

A function of the form

𝑓 𝑥 = 𝑎 ! ,             𝑎 > 0, 𝑎 ≠ 1 ,

is called an exponential function, where the base 𝑎 is fixed and the exponent 𝑥
varies over all real numbers.

Ques. Write down the rules or laws or properties of exponents.

Answer. For all 𝑎, 𝑏 > 0, 𝑎 ≠ 1, 𝑏 ≠ 1, the laws of exponent are as follows:

1. 𝑎! = 1.  
2. 𝑎 ! . 𝑎 ! = 𝑎 !!! . For example: 𝑎! . 𝑎! = 𝑎!!! = 𝑎! .
3. 𝑎 ! ÷ 𝑎 ! = 𝑎 !!! . For example: 𝑎! ÷ 𝑎! = 𝑎!!! = 𝑎! .
4. 𝑎 ! ! = 𝑎 !" . For example: 𝑎! ! = 𝑎!" .
5. 𝑎𝑏 ! = 𝑎 ! 𝑏 ! . For example: 𝑎𝑏 ! = 𝑎! 𝑏 ! .
! ! !! !
6. = . For example: 𝑎/𝑏 = 𝑎! /𝑏 ! .
! !!
!! !
7. 𝑎 = !! . For example: 𝑎!! = 1/𝑎! .
8. a x = a y iff x = y ( a ≠ 1) . For example: 5! = 5!  implies 𝑥 = 2.
9. a x = b x iff a = b (x ≠ 0).    For example: 𝑥 ! = 5!  implies 𝑥 = 5.

Definition  [Logarithm]  
For  any  number  N,  if   N = a x (a > 0, a ≠ 1),  then  the  index  𝑥  is  called  the  logarithm  of  
the  number   N  to  the  base  a,  and  we  write   x = log a N .  

If   x = log a N  is  given,  we  can  write   N = a x .  

Thus,   N = a x  and   x = log a N ( a > 0, a ≠ 1)  are  equivalent  relations.    

               i.e.,     N = a x ⇔ x = log a N   (a > 0, a ≠ 1)  

Examples:
1. 34 = 81 ⇒ 4 = log 3 81, i.e.  logarithm  of  81  to  the  base  3  is  equal  to  4.    
2. 23 = 8 ⇒ 3 = log 2 ,8, i.e.  logarithm  of  8  to  the  base  2  is  equal  to  3.    
1 1
3. (25)1/ 2 = 5 ⇒ = log 25 5, i.e.  logarithm  of  5  to  the  base  25  is  equal  to   .    
2 2
4. Since   26 = 64,   43 = 64,   8 2 = 64 ;  we  can  write   log 2 64 = 6,   log4 64 = 3   log 8 64 = 2.  

Thus, we see that the logarithms of the same number with different bases will be
different.

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   21  
Ques. What is a logarithm function?

A function of the form

𝑓 𝑥 = 𝑙𝑜𝑔! 𝑥,             𝑎 > 0, 𝑎 ≠ 1 ,

is called a logarithm function, where the base 𝑎 is fixed and the number 𝑥 varies
over all positive real numbers.

ü Note that exponential function and logarithm function are inverse function.

Ques. Write down the rules or laws or properties of logarithms.

Answer. For all 𝑎 > 0, 𝑎 ≠ 1 the laws of logarithm are as follows:

1. 𝑙𝑜𝑔! 𝑥𝑦 = 𝑙𝑜𝑔! 𝑥 + 𝑙𝑜𝑔! 𝑦.  

!
2. 𝑙𝑜𝑔! = 𝑙𝑜𝑔! 𝑥 − 𝑙𝑜𝑔! 𝑦,
!
!
3. 𝑙𝑜𝑔! 𝑥 = 𝑦(𝑙𝑜𝑔! 𝑥),
4. 𝑙𝑜𝑔! 1 = 0,
5. 𝑙𝑜𝑔! 𝑎 = 1.
!"#! !
6. 𝑙𝑜𝑔! 𝑥 = (𝑏 > 0, 𝑏 ≠ 1)
!"#! !

Ø Page 366: Example Problem

Example. Assume that for some base 𝑎, 𝑙𝑜𝑔! 𝑥 = 0.3000, 𝑙𝑜𝑔! 𝑦 = 2.8642, and
! ! ! !/!
𝑙𝑜𝑔! 𝑧 = 1.7642. Find 𝑙𝑜𝑔! .
!
! ! ! !/!
Solution: 𝑙𝑜𝑔! = 𝑙𝑜𝑔! 𝑥 ! + 𝑙𝑜𝑔! 𝑦 !/! − 𝑙𝑜𝑔! 𝑧
!
1
= 3𝑙𝑜𝑔! 𝑥 + 𝑙𝑜𝑔! 𝑦 − 𝑙𝑜𝑔! 𝑧
2
!
= 3 0.3000 + ! 2.8642 − 1.7642 = 0.5679. (Answer)

Exercise. Assume that for some base 𝑎, 𝑙𝑜𝑔! 𝑥 = 0.5, 𝑙𝑜𝑔! 𝑦 = 1.5, and
!"
𝑙𝑜𝑔! 𝑧 = 3. Compute the value of 𝑙𝑜𝑔! . Answer. 1.
! !/!

Example. Rewrite the following using the log symbols only once:
! !! !/!
𝑙𝑜𝑔! 𝑥 − 2𝑙𝑜𝑔! 𝑦 + ! 𝑙𝑜𝑔! 𝑧. Answer. 𝑙𝑜𝑔! .
!!

Ø Page 372: Problem 1-28 (problem set 5-2)

Ques. Remember that 𝑙𝑜𝑔!" 𝑥 = log 𝑥 and 𝑙𝑜𝑔! 𝑥 = ln 𝑥. Write the

following in inverse form.

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   22  
 1. 3! = 9, 2. 2! = 32, 3. 𝑙𝑜𝑔! 𝑁 = 𝑥,

4. 𝑙𝑜𝑔! 𝑁 = 𝑦, ! !
5. 1/2 = 0.125, 6. 0.2 = 0.04,

7. 𝑙𝑜𝑔!" 4 = 1/2, 8. 𝑙𝑜𝑔!" 3 = 1/3, 9. 2!! = 0.125

10. 3!! = 1/9, 11. 𝑙𝑜𝑔! 0.04 = −2 12. 𝑙𝑜𝑔! 0.0625 = −4

13. ln 20 = 2.9957 14.     ln 10 = 2.3026 16.     ln 0.5 = −0.6931

Ques. What is the value of 𝑥 in problems 17 through 24?

17.    𝑙𝑛𝑒 = 𝑥 18.    𝑙𝑜𝑔  10 = 𝑥, 19.    𝑙𝑜𝑔! 4 = 𝑥,

20. 𝑙𝑜𝑔! 27 = 𝑥 21. 𝑙𝑜𝑔! 7 = 𝑥 22. 𝑙𝑜𝑔!.! (0.5) = 𝑥

23.          𝑙𝑜𝑔! 2 = 𝑥 24.    𝑙𝑜𝑔!" 4 = 𝑥

Ques. Given that 𝑙𝑜𝑔! 𝑥 = 4.2, 𝑙𝑜𝑔! 𝑦 = 1.4 and 𝑙𝑜𝑔! 𝑧 = −1.2. Compute
the value of each of the following:

25.    𝑙𝑜𝑔! 𝑥𝑦𝑧 26.        𝑙𝑜𝑔! 𝑧 , 27. 𝑙𝑜𝑔! 𝑥/𝑧 ,

28. 𝑙𝑜𝑔! 𝑥𝑦/𝑧 .

Ø Page 385 : Review problem 25-33

Ques. What is the value of 𝑥 in each of the following?

25.    𝑙𝑜𝑔! 32 = 𝑥. 26.        𝑙𝑜𝑔! 81 = 𝑥. 27.      𝑙𝑜𝑔!.! 0.04 = 𝑥.

28.    𝑙𝑜𝑔! 𝑥 = 3. 29.      𝑙𝑜𝑔! 𝑥 = 4. 30.    𝑒 !"# = 𝑥.

31.    3!"#! ! = 𝑥.   32.    5!"#! ! = 𝑥.

Ques. 33. If, for base 𝑎, 𝑙𝑜𝑔! 𝑥 = 0.6, 𝑙𝑜𝑔! 𝑦 = 1.8 and 𝑙𝑜𝑔! 𝑧 = 1.2,
!!
compute the value of 𝑙𝑜𝑔! .
(!")!/!

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   23  
Chapter-06
Introduction to the Mathematics of Finance
Simple   Interest:   When   interest   is   calculated   only   on   the   original   principal,   then   it   is   called   simple  
interest  (S.I.).  Mathematically,  S.I.  =  Pin.  Where  p  is  the  principal,  𝑖  is  the  rate  of  interest  per  year  and  𝑛  
is  the  number  of  years.  

Compound   Interest:   When   interest   is   calculated   on   both   principal   and   successive   interests   then   it   is  
called  compound  interest  (C.I.).  Mathematically,  C.I.  =  𝐴 − 𝑃,  𝐴 = 𝑃(1 + 𝑖)!  ,  Where    𝑃  is  the  principal,  
𝑖  is  the  rate  of  interest  per  year  and  𝑛  is  the  number  of  years.  

Nominal  Interest:  The  annual  compound  interest  rate  is  called  nominal  rate  of  interest.  

Effective  Interest:  When  interest  is  compounded  more  than  once  in  a  year,  then  the  actual  percentage  
of  interest  rate  per  year  is  called  effective  rate  of  interest.    

Annuity:  A  sequence  of  equal  payments  made  at  equal  time  intervals  is  called  an  annuity.  

Annuity  Certain:  An  annuity  payable  for  a  fixed  number  of  years  is  called  annuity  certain.    

Annuity   Due:   An   annuity,   in   which   all   payments   are   made   at   the   beginning   of   each   period,   is   called  
annuity  due.  Examples:  saving  schemes,  life  insurance  payments,  etc.      

Immediate   Annuity:   An   annuity,   in   which   all   payments   are   made   at   the   end   of   each   period,   is   called  
immediate  annuity  or  ordinary  annuity.  Examples:  car  loan,  repayment  of  housing  loan  etc.  

Annuity   Contingent:   In   case   the   term   of   payment   depends   on   some   uncertain   event,   the   annuity   is  
called  annuity  contingent.  

Deferred   Annuity:   If   the   payments   are   deferred   or   delayed   for   a   certain   number   of   years,   then   it   is  
called   deferred   annuity.   For   ex.:   pension   plan   etc.   Many   financial   organizations   give   loan   amount  
immediately  and  regular  installments  may  start  after  specified  time  period.  

Perpetual   annuity:   An   annuity   whose   payments   are   continue   forever   is   called   perpetual   annuity   or  
a
perpetuity.  In  this  case,  PV  =    ;  where  a  =  payment  of  each  installment,    i=  rate  of  interest.    
i
Present  value  of  an  annuity:   The   present   value   of   an   annuity   is   the   sum   of   the   present   values   of   all   the  
payments  of  annuity  at  the  beginning  of  the  annuity.  

Future   value   of   an   annuity:  The  future  value  of  an  annuity  is  the  sum  of  all  payments  made  and  interest  
earned  on  them  at  the  end  of  the  term  of  annuities.  

Sinking   Fund:   A   type   of   savings   fund,   in   which   deposits   are   made   regularly,   with   compound   interest  
earned,   to   be   used   later   for   a   specific   purpose,   such   as   purchasing   equipment   or   buildings,   is   called  
sinking  fund.    

Amortization:  A  loan  with  fixed  rate  of  interest  is  said  to  be  amortized  if  both  principal  and  interest  are  
paid  by  a  sequence  of  equal  payments  with  equal  time  periods.  Purchasing  a  car  by  making  a  series  of  
periodic  payments  is  an  example  of  a  loan  that  is  amortized.  

Formulae:  

1. 𝑆. 𝐼. = 𝑃𝑖𝑛    
!"#$
(for   (i)   exact   method  𝑛 =  and   for   ordinary   method   [or   Banker’s   rule]  
!"#
!"#$
𝑛=  )  
!"#
2. 𝐶. 𝐼. = 𝐹 − 𝑃=  Future  value  –  Present  value  
3. (i)  𝐹 = 𝑃(1 + 𝑖)! ,  when  interest  is  compounded  yearly  

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   24  
 (ii)  𝐹 = 𝑃(1 + 𝑖/2)!! ,   when   interest   is   compounded   semi-­‐annually   or   half  
yearly  
(iii)  𝐹 = 𝑃(1 + 𝑖/4)!! ,  when  interest  is  compounded  quarterly    
(iv)  𝐹 = 𝑃(1 + 𝑖/12)!"! ,  when  interest  is  compounded  monthly  
where   P   indicates   present   value,  F   indicates   future   value,  𝑖  indicates   rate   of  
interest  per  year  and    𝑛  is  the  number  of  years.  
4. Nominal  rate  =  rate  per  year  =  𝑗  
! !"#$%&'  !"#$  !"#  !"#$
5. 𝑖 = ! = !"#$%&  !"  !"#$%&'("#'  !"#  !"#$  
6. The   effecter   rate   is   the   equivalent   annual   simple   interested   rate.   It   is  
denoted  by  𝑟! .  
! ! !
7. 𝑟! = 1 + 𝑖 −1= 1+! − 1.  

Annuity  (Ordinary  Annuity)  [payments  are  made  at   the   end  of  each  
period]  
! !
8. 𝑃𝑉 = 1− ,    
! !!! !
[we   use   this   formula   in   case   of   amortization,   loan,   debt,   borrow  
because  PV  is  the  amount  of  amortization,  loan,  debt,  borrow]  
! !
9. 𝐹𝑉 = 1+𝑖 − 1  
!
[we   use   this   formula   in   case   of   sinking   fund,   any   kind   of   fund,  
because  FV  is  the  amount  of  sinking  fund  or  any  kind  of  fund]  
where  𝑎 =  payment  of  each  installment  
                       𝑛 =  number  of  installments  
!
                       𝑖 =  
!
                       𝑗 =  nominal  rate  per  year  
                       𝑚 =  number  of  conversions  per  year  
 
ü Page 390 : Example problem

Question:  Find  the  interest  on  $𝟏𝟒𝟔𝟎  for  72  days  at  10  percent  interest  using  (a)  the  exact  
method  and  (b)  the  ordinary  method.  
 
Solution:  Given  that,  𝑷 = $𝟏𝟒𝟔𝟎, 𝒊 = 𝟏𝟎% = 𝟎. 𝟏.  
 
!" !"
(a)  For  exact  method,  𝑛 = !"#.  So,  the  simple  interest  (S.I)  =  𝑃𝑛𝑖  =  1460× !"# ×0.10 = $28.80.    
!" !"
(b)  For  ordinary  method,  𝑛 = !"#.  So,  the  S.I  =  𝑃𝑛𝑖  =  1460× !"# ×0.10 = $29.90.  

ü Page 392: Example problem & exercise problem

Exercise. Find the future value of $5000 at 10% for 9 months.

Answer. $5375. [Try yourself]

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   25  
Example.  Jan  received  $50  for  a  diamond  at  a  pawnshop  and  a  month  later  paid  $53.50  to  get  
the  diamond  back.  Find  the  percent  interest  rate.  
!
Solution:  Given  that,  P=  $50,  F=$53.50  and  𝑛 =  year,  𝑖 =?  
!"
We  know,  𝐹 = 𝑃 + 𝑃𝑛𝑖    
!
                               ⇒ 53.50 = 50 + (50× ×𝑖)    
!"
!"!
                               ⇒ = 3.50    
!"

= 0.84 = 0.84×100% = 84%  (Answer)  

!.!"×!"
                           ⇒ 𝑖 =
!"

Page  393  
Exercise.  Fran  has  placed  $500  in  an  employees’  savings  account  that  pays  8  percent  simple  
interest.  How  long  will  it  be,  in  months,  until  the  investment  amounts  to  $530?  
 
Solution:  Given  that,  P=  $500,    F=$530,  𝑖  =  8%  or  0.08,  𝑛 =?  
We  know,  𝐹 = 𝑃 + 𝑃𝑛𝑖    
! !"!
⇒ 530 = 500 + (500× !" ×0.08)    ⇒ !"
= 30    
! !"
⇒ !" = !"  ⇒ 𝑛 =9  months  [Ans.]  
 
ü Page 408: Example problem

Question:  At what interest rate compounded annually will a sum of money double in 10
years?

Solution:  Let,  PV=  $𝑥,  so  according  to  the  question,  FV=  $2𝑥,    𝑛 =  10  years,  𝑖 =?  
We  know,  𝐹 = 𝑃(1 + 𝑖)!  ⇒ 2𝑥 = 𝑥(1 + 𝑖)!"    ⇒ 2 = (1 + 𝑖)!"    
!"
⇒ 𝑙𝑜𝑔2 = 𝑙𝑜𝑔 1 + 𝑖  ⇒ 𝑙𝑜𝑔2 = 10log  (1 + 𝑖)    ⇒ 10 log 1 + 𝑖 = 𝑙𝑜𝑔2    
!"#!
⇒ log  (1 + 𝑖) = !"
   ⇒ log  (1 + 𝑖) = 0.0301     ⇒ (1 + 𝑖) = 10!.!"!#    

⇒ 1 + 𝑖 = 1.071766    ⇒ 𝑖 = 1.071766 − 1    ⇒ 𝑖 = 0.071766      

⇒ 𝑖 = 0.071766X100%  ⇒ 𝑖 =7.17%  (Answer)  

ü Page 409 : Future Value Problem 9-14 (problem set 6-2)

Question  no.  9  
How  many  years  will  it  take  at  7  percent  compounded  annually  for  $5,000  to  amount  to  
$20,000?  
 
Solution:  Here,  P  =  $5000,  F  =  $20000,  𝑖  =  7%  =  0.07,  𝑛 =?  
We  know,  𝐹 = 𝑃(1 + 𝑖)!    
⇒ 20,000 = 5000(1 + 0.07)!    

⇒ 5000(1 + 0.07)! = 20,000    

⇒ (1 + 0.07)! = 4    

⇒ 𝑙𝑜𝑔(1 + 0.07)! = 𝑙𝑜𝑔4    (Taking  log  on  both  sides)  

⇒ nlog  (1 + 0.07) = 𝑙𝑜𝑔4    

!"#!
⇒ 𝑛 = !"#!.!"  ⇒ 𝑛 = 20.49  years.  (Answer)  

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   26  
  
Question  no.  10  
How  many  years  will  it  take  for  a  sum  of  money  to  double  at  10  percent  compounded  
annually?  
 
!"
Solution:  Suppose,  PV=  $𝑥,  FV=  $2𝑥,  𝑖 = 10% = !"" = 0.1,  𝑛 =?  
We  know,  𝐹𝑉 = 𝑃𝑉(1 + 𝑖)!    
⇒ 2𝑥 = 𝑥(1 + 0.10)!      ⇒ 2 = (1 + 0.10)!    

⇒ 𝑙𝑜𝑔2 = 𝑙𝑜𝑔 1 + 0.10 !      (Taking  log  on  both  sides)  

⇒ 𝑛 log 1 + 0.10 = 𝑙𝑜𝑔2    

!"#!
⇒ n = !"#  (!.!")    ⇒ 𝑛 = 7.27  𝑦𝑒𝑎𝑟𝑠    
 

Question  no.  11  

Find  the  rate  of  interest  compounded  annually  at  which  a  sum  of  money  will  double  in  20  
years?  
 
Solution:  Suppose,  PV=  $𝑥,  FV=  $2𝑥,  𝑛 =20  years,  𝑖 =?    
We  know,  𝐹𝑉 = 𝑃𝑉(1 + 𝑖)!    
⇒ 2𝑥 = 𝑥(1 + 𝑖)!"    ⇒ 2 = (1 + 𝑖)!"    
⇒ 𝑙𝑜𝑔2 = 𝑙𝑜𝑔 1 + 𝑖 !"    (Taking  log  on  both  sides)  
⇒ 𝑙𝑜𝑔2 = 20log  (1 + 𝑖)    ⇒ 20 log 1 + 𝑖 = 𝑙𝑜𝑔2    
!"#!
⇒ log  (1 + 𝑖) = !"
   ⇒ log  (1 + 𝑖) = 0.01505    
!.!"#!#
⇒ (1 + 𝑖) = 10    
⇒ 1 + 𝑖 = 1.03526    ⇒ 𝑖 = 1.03526 − 1    ⇒ 𝑖 = 0.03526    
⇒ 𝑖 = 0.03526X100%  ⇒ 𝑖 = 3.526%  (Answer).  
 
Question  no.  12  
Find  the  rate  of  interest  compounded  semiannually  at  which  $𝟓𝟎𝟎𝟎  will  grow  to  $𝟏𝟐𝟎𝟎𝟎  in  8  
years.  
 
Solution:  Here,  we  are  given  PV  =  $5,000,    FV=  $12,000,  𝑛 = 8  years,  𝑖 =?  
We  know,  𝐹 = 𝑃(1 + 𝑖/2)!! ,  when  interests  are  compounded  semiannually    
!
⇒ 12,000 = 5,000(1 + !)!!!    
!
⇒ 12,000 = 5,000(1 + !)!"    
!
⇒ (1 + !)!" = 2.4    
!
⇒ 𝑙𝑜𝑔(1 + !)!" = 𝑙𝑜𝑔2.4    
!
⇒ 16 log 1 + ! = 𝑙𝑜𝑔2.4    
! !"#!.!
⇒ log  (1 + !) = !"
   
!
⇒ log  (1 + !) = 0.02376    
!
⇒ (1 + !) = 10!.!"#$%    
!
⇒ ! = 0.0562  ⇒ 𝑖 = 0.112467  ⇒ 𝑖 = 11.246%.  (Answer)    
 

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   27  
Question  no.  13  
A  bank  pays  5.25  percent  compounded  daily  on  certificate  accounts  running  for  6  years.  Using  
365  days  per  year  compute  the  future  value  of  a  deposit  of  $5,000  for  6years.  
 

Solution:  Given,    PV=  $5,000  ,  n=8  years,  𝑖 = 5.25% = 0.0525, 𝐹𝑉 =?    

!
We  know,  𝐹𝑉 = 𝑃𝑉(1 + !"#)!"#!    
⇒ 𝐹𝑉 = 5,000(1 + 0.000143835)!×!"#    
⇒ 𝐹𝑉 = 5,000(1 + 0.000143835)!"#$  ⇒ 𝐹𝑉 = 6,851.14    (Answer)  
                                                                                                                                                                                                                                                                                                                                                                                     
Question  no.  14  
A  bank  pays  5.25  percent  compounded  daily  on  certain  accounts.  Find  the  future  value  of  a  
deposit  of    $2,000  for  45  days.  
 
!"
Solution:  PV=  $2,000  ,𝑛 = !"#  year,  𝑖 = 5.25% = 0.0525,  FV=?    
!
⇒ 𝐹𝑉 = 𝑃𝑉(1 + !"#)!"#!    
!.!"#" !"
⇒ 𝐹𝑉 = 2,000(1 + !"#
)      ⇒ 𝐹𝑉 = 2,000𝑋1.00649    
⇒ 𝐹𝑉 = 2,012.986    
 
Page  414  
Example  problem  
Find  the  effective  rate  of  24  percent  compounded  monthly.  
 
Solution:  Given  that,  𝑗 = 24% = 0.24,  𝑚 = 12,  𝑟! =?  
! !
We  know,  effective  rate,  𝑟! = 1 + − 1    
!
!.!" !"
⇒ 𝑟e  =  (1 + !"
) − 1                                                                                                                                                                                                                                                                                                                                                                                    
⇒ 𝑟e  =  (1 + 0.02) − 1 = 0.268241795                ⇒ 𝑟e  =  26.82  %  
!"

 
Exercise  Problem  
Find  the  effective  rate  of  16  percent  compounded  quarterly.  
 
Solution:  Given  that,  𝑗 = 16% = 0.16  ,  𝑚 = 4,  𝑟! =?  
! !
We  know,  effective  rate,  𝑟! = 1+! − 1    
!.!" !
⇒ 𝑟e  =  (1 + !
) − 1                                                                                                                                                                                                                                                                                                                                                                                      
⇒ 𝑟e  =  (1 + 0.04)! − 1 = 0.1699            ⇒ 𝑟e  =  16.99  %  
 
ü Page 428 : Sinking Fund Payment example problem

 
Question:  How  much  should  be  deposited  in  a  sinking  fund  at  the  end  of  each  quarter  for  5  
years  to  accumulate  $𝟏𝟎𝟎𝟎𝟎  if  the  fund  earns  8  percent  compounded  quarterly?  
   
Solution:  Given  that,  𝐹𝑉 = $10,000,  
! !% !.!"
                                                                             𝑖 = ! = !
= !
= 0.02  ,    
                                                                           𝑛 = 4𝑚 = 4×5 = 20, 𝑎 =?    
 

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   28  
 !
We  know,  𝐹𝑉 = ! [(1 + 𝑖)! − 1]    
!
⇒ 10,000 = !.!" [(1 + 0.02)!" − 1]    
! !",!!!×!.!"
⇒ !.!" ×0.4859 = 10,000      ⇒ 𝑎 = !.!"#$
   ⇒ 𝑎 = $411.61    
 
Thus,  $411.61  should  be  deposited  quarterly  and  the  total  sum  of  the  deposits  will  be  
411.61×20  =  8,232.15  dollar.  

Page#429

Question:  A  company  wants  to  accumulate  $100,000  to  purchase  replacement  machinery  8  
years  from  now.  To  accomplish  this,  equal  semiannual  payments  are  made  to  a  fund  that  
earns  7%  compounded  semiannually.  Find  the  amount  of  each  payment.    
   
Solution:  Given  that,  𝐹𝑉 = $100,000,  
! !% !.!"
                                                                             𝑖 = ! = !
= !
= 0.035  ,    
                                                                           𝑛 = 8𝑚 = 8×2 = 16, 𝑎 =?    
 
!
We  know,  𝐹𝑉 = ! [(1 + 𝑖)! − 1]    
!
⇒ 10,0000 = !.!"# [(1 + 0.035)!" − 1]    
 ⇒ 𝑎 = $4768.48  .  
 
ü Page 430 : Problem set 6-6 (question no 6-10)

 
Question  no.6  
Greg   has   $100   deducted   from   his   salary   at   the   end   of   each   month   and   invested   in   an  
employees’   fund   that,   because   of   company   contributions,   pays   12   percent   interest  
compounded   monthly.   How   much   will   Greg’s   account   amount   to   when   he   retires   3   years  
from  now  after  receiving  his  last  salary  check?  
 
! !"% !.!"
Solution:  Given  that,  a  =  $100,  𝑖 = ! = !"
= !"
= 0.01,  𝑛 = 12𝑚 = 12×3 = 36, 𝐹𝑉 =?  
 
We  know,  
!
𝐹𝑉 = ! [(1 + 𝑖)! − 1]    
!""
𝐹𝑉 = !.!" [(1 + 0.01)!" − 1]  ⇒ 𝐹𝑉 = 10,000×0.4307      ⇒ 𝐹𝑉 = $4,307  (Answer)  
 
Question  no.  7  
What   amount   should   be   deposited   at   the   end   of   each   quarter   in   a   sinking   fund   earning   8  
percent  compounded  quarterly  if  the  amount  in  the  fund  after  4  years  is  to  be  $90,000?  
 
! !% !.!"
Solution:  We  have,  𝑖 = ! = !
= !
= 0.02  ,  𝑛 = 4𝑚 = 4×4 = 16,  FV=  $90,000,  𝑎 =?  
 
!
We  know,  𝐹𝑉 = ! [(1 + 𝑖)! − 1]    
 
! !
⇒ 90,000 = !.!" [(1 + 0.02)!" − 1]    ⇒ !.!" ×0.37278 = $90,000    

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   29  
 !",!!!×!.!"
⇒𝑎= !.!"#"$
   ⇒ 𝑎 = $4,828.58  (Answer)  
   
Question  no.  8  
What   amount   should   be   deposited   at   the   end   of   each   6-­‐month   period   in   a   sinking   fund  
earning  6  percent  compounded  semiannually  if  the  amount  in  the  fund  after  15  years  is  to  be  
$75,000?  
 
!.!"
Solution:  We  have,  𝑖 = !
= 0.03  ,  n  =  15×2  =  30,  FV=  $75,000,  𝑎 =?  
 
We  know,  
!
𝐹𝑉 = ! [(1 + 𝑖)! − 1]    
!
⇒ 75,000 = !.!" [(1 + 0.03)!" − 1]    
! !",!!!!!.!"
⇒ !.!" ×1.42726 = $90,000  ⇒ 𝑎 = !.!"#"$
   ⇒ 𝑎 = $1,576.45    
 
Question  no.9  
New  Venture  Corporation  has  decided  to  transfer  a  sum  of  money  to  a  reserve  amount  at  the  
end   of   each   year   to   accumulate   $1,00,000   to   be   used   to   replace   machinery   10   years   from  
now.  How  much  should  be  transferred  each  year  if  interest  at  8  percent  compound  annually  if  
credited  to  the  reserve?  
 
Solution:  Given  that,  FV=  $1,00,000,  n  =  10,  i  =  8%  or  0.08  
!
We  know,  𝐹𝑉 = ! [(1 + 𝑖)! − 1]    
!
⇒ 1,00,000 = !.!" [(1 + 0.08)!" − 1]    
! !",!!!×!.!"
⇒ !.!" ×1.1589 = $1,00,000  ⇒ 𝑎 = !.!"#$
   ⇒ 𝑎 = $6,903.10    
 
Question  no.  10  
In  order  to  accumulate  $15,000  for  a  down  payment  on  a  home  8  years  from  now,  the  joneses  
are  going  to  deposit  a  sum  of  money  at  the  end  of  each  6-­‐month  period  in  an  account  earning  
8  percent  compounded  semiannually.  What  should  be  the  amount  of  each  deposit?  
 
!.!"
Solution:  We  have,  𝑖 = !
= 0.04  ,  n  =  8×2  =  16  
FV=  $15,000  
!
We  know,  𝐹𝑉 = ! [(1 + 𝑖)! − 1]    
!
⇒ 15,000 = !.!" [(1 + 0.04)!" − 1]    
! !",!!!×!.!"
⇒ !.!" ×0.8729 = $15,000    ⇒ 𝑎 = !.!"#$
   ⇒ 𝑎 = $687.36    

ü Page 432 : Example problem

Question. What sum deposited now in an account earning 8% interest

compounded quarterly will provide quarterly payments of $1000 for 10
years, the first payment to be made 3 months from now?

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   30  
 ! !% !.!"
Solution:  Given  that,  PV=?,  𝑖 = ! = !
= !
= 0.02,    𝑛 = 10𝑚 = 10×4 = 40, 𝑎 = $1000.  
 
! !
We  know,  𝑃𝑉 = ! [1 − !!! !
]    

!""" !
⇒ 𝑃𝑉 = !.!"
1− !!!.!" !"
= $27355.48  (Answer)    

ü Page 434 : Amortization problem example

Question.  Sam  borrowed  $5,000  to  buy  a  car.  He  will  amortize  the  loan  by  monthly  payments  
of   $R   each   over   a   period   of   3   years.   a)   Find   the   monthly   payment   if   interest   is   12   percent  
compounded  monthly.  b)  Find  the  total  amount  Sam  will  pay.  
 
! !"% !.!"
Solution:  Given  that,  PV=$5,000,  𝑖 = ! = !"
= !"
= 0.01,    𝑛 = 3𝑚 = 3×12 = 36,  𝑎 = 𝑅 =?  
 
! !
We  know,  𝑃𝑉 = ! [1 − !!! !
]    

! !
⇒ 5,000 = !.!" [1 − !!!.!" !"
]    

! !
⇒ 5,000 = !.!" [1 − !.!"#$%]    

! !,!!!×!.!"
⇒ 5,000 = !.!" ×0.30439    ⇒ 𝑎 = !.!"#!$
 ⇒ 𝑎 = $164.2629    
 
(b)  The  total  amount  will  be    $164.2629×36 = $5,913.69  

ü Page 436: Example problem

 
Question.  A  $70,000  condominium  is  to  be  purchased  by  paying  $10,000  in  cash  and  a  $60,000  
mortgage  for  30  years  at  9.75  percent  compounded  monthly.  a)  Find  the  monthly  payment  on  
the  mortgage.  b)  What  will  be  total  amount  of  interest  paid?  
 
!.!"#$
Solution:  Given  that,  PV=$60,000,  𝑖 = !"
= 0.008125,  n=  30X12=360  
 
! !
We  know,  𝑃𝑉 = ! [1 − !!! !
]    

! !
⇒ 60,000 = !.!!"#$% [1 − !!!.!!"#$% !"#
]    

! !
⇒ 60,000 = !.!!"#$% [1 − !".!"#$%]    

! !",!!!×!.!!"#$%
⇒ 60,000 = !.!!"#$% ×0.945697    ⇒ 𝑎 = !.!"#$!%
   ⇒ 𝑎 = $515.49    
 
The  total  amount  will  be    $515.49×360 = $1,85,576.40  
 
Interest  paid  will  be  
= $1,85,576.40 − $60,000 = $1,25,576.40    

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   31  
ü Page 439 : Problem set 6-7 (question no 5-7)

Question  no.5  
A  company  offers  its  salespeople  a  bonus  of  $500  per  quarter  for  3  year.  To  win  a  bonus,  a  
salesperson  must  have  sold  at  least  $1  million  worth  of  the  company’s  products  in  the  period  
January  1  through  December  31,  and  the  first  bonus  payment  is  made  at  the  end  of  the  first  
quarter  following.  The  company  funds  each  bonus  on  December  31  by  a  lump-­‐sum  deposit  in  
a  bank  account  that  pays  8  percent  compounded  quarterly,  and  the  bank  sends  out  the  bonus  
checks.  a)  What  total  sum  is  received  by  each  bonus  winner?  b)  How  much  does  it  cost  the  
company  to  fund  each  bonus?  
 
Solution:  (a)  Total  sum  received  by  each  bonus  winner  is  ($500X12)  =  $6,000  
(b)  The  cost  the  company  to  fund  each  bonus  is  calculated  as  follows:    
 
!.!"
Given  that,  a=$500,  n=3x4=12,  𝑖 = !
= 0.02      
! ! !"" !
⇒ 𝑃𝑉 = ! [1 − !!! !
]    ⇒ 𝑃𝑉 = !.!" [1 − !!!.!" !"
]    

!"" ! !""
⇒ 𝑃𝑉 = !.!" [1 − !.!"#!$]    ⇒ 𝑃𝑉 = !.!" ×0.21151    

⇒ 𝑃𝑉 = $5,287.75    
 
Question  no.6  
A  college  alumni  club  has  decided  to  establish  a  scholarship  fund  that  will  provide  grants  of  
$5,000  a  year  for  25  years,  with  the  first  grants  to  be  made  a  year  from  now.  a)  What  should  
be  the  sum  placed  in  the  fund  if  interest  on  it  is  earned  at  the  rate  of  8  percent  compounded  
annually?  b)  What  is  the  total  amount  of  scholarship  aid  the  fund  will  provide  over  its  life?  
 
Solution:  Given  that,  a=$5,000,  n=25,  𝑖 = 8%  𝑜𝑟  0.08    
 
We  know,  
 
! ! !,!!! !
 ⇒ 𝑃𝑉 = ! [1 − !!! !
]    ⇒ 𝑃𝑉 = !.!"
[1 − !!!.!" !"
]    

!,!!! ! !,!!!
⇒ 𝑃𝑉 = !.!"
[1 − !.!"!"#$]    ⇒ 𝑃𝑉 = !.!"
×0.85398    

⇒ 𝑃𝑉 = $53,373.75    

(b)  The  total  amount  will  be  ($5,000×25)  =  $1,25,000  

 
Question  no.  7  
What  payment  at  the  end  of  each  month  for  2  years  will  discharge  a  current  debt  of  $1000  if  
the  interest  charge  on  the  debt  balance  at  any  time  is  12  percent  compounded  monthly?  
!.!"
Solution:  PV=$1,000,  n=2x12=24  ,  𝑖 = 12% = !"
= 0.01      
We  know,  
! ! ! !
𝑃𝑉 = ! [1 − !!! !
]    ⇒ 1,000 = !.!" [1 − !!!.!" !"
]    

! !,!!!×!.!"
⇒ 1,000 = !.!" ×0.2124  ⇒ 𝑎 = !.!"!#
 ⇒ 𝑎 = $47.08  
 

Solved  by  Dr.  Mohammad  Osman  Gani,  Professor,  Dept.  of  Mathematics,  Jahangirnagar  University   32