BMTH210

Business and Managerial Math Course

Schedule

Spring 2019 - 2020

Page 1 of 5
 MW Sections
Session Chapter(s) Topics to be covered Class Exercises
Worked Example
1 1 Sections 1.1 - 1.2 - 1.3- 1.4 (WE): 1.1 - 1.2 - 1.3 -
1.4 - 1.5 - 1.6
WE: 1.8 - 1.9 - 1.10 +
2 1 Sections 1.6 - 1.7 Pg. 20. Q. 8 - Pg. 21 Q.
10
3 1 Worksheet 1 Worksheet 1
WE: 2.1 - 2.3 - 2.4 -
4 2 Sections 2.1-2.4
2.5 - 2.12 - 2.13
WE: 2.6 - 2.7 - 2.9 -
5 2 Section 2.3 2.10 + Pg. 75 Q. 7 +
Pg. 81 Q. 9
6 2 Worksheet 2 Worksheet 2
WE: 3.1 - 3.4 - 3.5 +
Pg. 110 Q. 7 – 12- 13
7 2 Sections 3.1-3.2
WE: 3.7- 3.14 + Pg.
117 Q. 5 - 6
8 3 Worksheet 3 Worksheet 3
9 4 Section 4.1 WE: 4.1 - 4.2 - 4.6- 4.8
WE: 4.13 - 4.14 - 4.15
10 4 Section 4.2 - 4.16 + Pg. 179 Q. 1 -
17 - 21 - 23
WE: 4.17 - 4.18 - 4.20
11 4 Section 4.3 - 4.22 + Pg. 195 Q. 9 -
10 - 12 (g & h)
12 4 Worksheet 4 Worksheet 4
WE: 5.1 - 5.2 + Pg.
13 5 Section 5.1 214 Q. 1 + Worksheet
5
WE: 5.5 - 5.6 - 5.7 -
14 5 Section 5.2
5.8 - 5.9
15 5 Worksheet 5 Worksheet 5
WE: 6.2 - 6.3 - 6.4 -
16 6 Sections 6.1 - 6.6 6.33 - 6.34 - 6.35 -
6.36
WE: 6.6 - 6.8 - 6.10 +
17 6 Section 6.2
Pg. 278 Q. 3
WE: 6.16 - 6.18 - 6.21
18 6 Sections 6.3 - 6.4
- 6.22 + Pg. 315 Q. 3
19 6 Worksheet 6 Worksheet 6
WE: 9.3 - 9.4 - 9.5 +
20 9 Section 9.2 + worksheet
Worksheet
Solve remaining
21 9 REVISION SESSION 1 (Test 1) worksheet’s exercises
and extra exercises
Solve remaining
22 REVISION SESSION 2 (Test 1) worksheet’s exercises
and extra exercises
Solve remaining
23 REVISION SESSION 3 (Test 2) worksheet’s exercises
and extra exercises
Solve remaining
24 REVISION SESSION 4 (Test 2) worksheet’s exercises
and extra exercises
REVISION SESSION 5 (Final Exam) Solve remaining
25 worksheet’s exercises
and extra exercises
26 REVISION SESSION 6 (Final Exam) Solve extra exercises

The above course-schedule takes into account excluded sessions due to National holidays, Test 1, and Test 2

Page 2 of 5
Test 1 Date: Monday, March 16, 2020

Test 2 Date: Monday, May 11, 2020

Page 3 of 5
 TTh Sections
Session Chapter(s) Topics to be covered Class Exercises
Worked Example
1 1 Sections 1.1 - 1.2 - 1.3- 1.4 (WE): 1.1 - 1.2 - 1.3 -
1.4 - 1.5 - 1.6
WE: 1.8 - 1.9 - 1.10 +
2 1 Sections 1.6 - 1.7 Pg. 20. Q. 8 - Pg. 21 Q.
10
3 1 Worksheet 1 Worksheet 1
WE: 2.1 - 2.3 - 2.4 -
4 2 Section 2.1
2.5 + Worksheet 2
WE: 2.12 - 2.13 +
5 2 Section 2.4
Worksheet 2
WE: 2.6 - 2.7 - 2.9 -
6 2 Section 2.3 2.10 + Pg. 75 Q. 7 +
Pg. 81 Q. 9
7 2 Worksheet 2 Worksheet 2
WE: 3.1 - 3.4 - 3.5 +
8 3 Section 3.1
Pg. 110 Q. 7 – 12- 13
WE: 3.7- 3.14 + Pg.
9 3 Section 3.2
117 Q. 5 - 6
10 3 Worksheet 3 + Revision Worksheet 3
11 4 Section 4.1 WE: 4.1 - 4.2 - 4.6- 4.8
WE: 4.13 - 4.14 - 4.15
12 4 Section 4.2 - 4.16 + Pg. 179 Q. 1 -
17 - 21 - 23
WE: 4.17 - 4.18 - 4.20
13 4 Section 4.3 - 4.22 + Pg. 195 Q. 9 -
10 - 12 (g & h)
14 4 Worksheet 4 Worksheet 4
WE: 5.1 - 5.2 + Pg.
15 5 Section 5.1
214 Q. 1 +Worksheet 5
WE: 5.5 - 5.6 - 5.7 -
16 5 Section 5.2
5.8 - 5.9
17 5 Worksheet 5 Worksheet 5
WE: 6.2 - 6.3 - 6.4 -
18 6 Sections 6.1 - 6.6 6.33 - 6.34 - 6.35 -
6.36
WE: 6.6 - 6.8 - 6.10 +
19 6 Section 6.2
Pg. 278 Q. 3
WE: 6.16 - 6.18 - 6.21
20 6 Sections 6.3 - 6.4
- 6.22 + Pg. 315 Q. 3
21 6 Worksheet 6 Worksheet 6
WE: 9.3 - 9.4 - 9.5
22 9 Section 9.2
Worksheet 7
Solve remaining
23 REVISION SESSION 1 (Test 1) worksheet’s exercises
and extra exercises
Solve remaining
24 REVISION SESSION 2 (Test 1) worksheet’s exercises
and extra exercises
Solve remaining
25 REVISION SESSION 3 (Test 2) worksheet’s exercises
and extra exercises
Solve remaining
26 REVISION SESSION 4 (Test 2) worksheet’s exercises
and extra exercises
REVISION SESSION 5 (Final Exam) Solve remaining
27 worksheet’s exercises
and extra exercises
28 REVISION SESSION 6 (Final Exam) Solve extra exercises

The above course-schedule takes into account excluded sessions due to National holidays, Test 1, and Test 2
Page 4 of 5
Test 1 Date: Tuesday, March 17, 2020

Test 2 Date: Tuesday, May 12, 2020

Page 5 of 5
 BMTH210 – Business and Managerial Mathematics
Mathematical Preliminaries
Notes:

Section 1.1: Some Mathematical Preliminaries

Powers:
Given that a is any number ≠ 0, the following properties apply:
(𝑎)0 = 1
(𝑎)1 = 𝑎
(𝑎)2 = 𝑎 × 𝑎
(𝑎 )3 = 𝑎 × 𝑎 × 𝑎
(𝑎 )𝑛 = 𝑎 × 𝑎 × 𝑎 × … × 𝑎 (n times)

Radicals:
√(𝑎)2 = |𝑎| = +𝑎 {𝑖𝑓 𝑎 ≥ 0}
√(−𝑎)2 = |−𝑎| = +𝑎
e.g.: √(2)2 = |2| = +2 𝑎𝑛𝑑 √(−2)2 = |−2| = +2

Note: The square roots of a positive number a are ±√𝑎

e.g.: the square roots of 4 are: ±√4 = ±2 BUT √4 = +2

When finding the third root of a number, the root follows the same sign of the number since
power 3 is odd, for example:
3 3
√(𝑎)3 = 𝑎 √(−𝑎)3 = −𝑎

Therefore, when finding the nth root:

 If n is odd then we have one root, which has the same sign as the number:
𝑛 𝑎 𝑛 𝑎
𝑒. 𝑔. when n is odd, the 𝑛𝑡ℎ root is: √(𝑥)𝑎 = 𝑥 ⁄𝑛 OR √(−𝑥)𝑎 = −𝑥 ⁄𝑛
 If n is even then we have two roots:
𝑎
𝑒. 𝑔. when n is even, the 𝑛𝑡ℎ roots are: ± 𝑛√(𝑥)𝑎 = ±|𝑥| ⁄𝑛
2 1
4
𝑒. 𝑔. : 𝑡ℎ𝑒 4𝑡ℎ 𝑟𝑜𝑜𝑡𝑠 𝑜𝑓 (−2)2 𝑎𝑟𝑒: ± √(−2)2 = ±|−2|4 = ±22 = ±√2
4
BUT √(−2)2 = | − 2|2/4 = 21/2 = √2
Parentheses are used:
- For multiplication
- When exponents are used
- When we are subtracting more than one term

Section 1.2: Arithmetic Operations

A common technique for remembering the order of operations is the abbreviation "PEMDAS",
which is turned into the phrase "Please Excuse My Dear Aunt Sally".
PEMDAS: "Parentheses, Exponents, Multiplication and Division, and Addition and
Subtraction".

Rules for addition/subtraction:

Like terms are added and subtracted together.

Rules for +/– signs in multiplication and division:

(+) × (+) = (+)
(−) × (−) = (+)
(+) × (−) = (−)
(−) × (+) = (−)

(+) (−) (+) (−)

= (+) = (+) = (−) = (−)
(+) (−) (−) (+)

0 × (any real number) = 0

0
=0
(any real number ≠ 0)

(any number)
= undefined
0

Some identities:
(𝑎 + 𝑏)2 = 𝑎2 + 2𝑎𝑏 + 𝑏2
(𝑎 − 𝑏)2 = 𝑎2 − 2𝑎𝑏 + 𝑏2
(𝑎 + 𝑏)(𝑎 − 𝑏) = 𝑎2 − 𝑏2
Section 1.3: Fractions

numerator
fraction =
denominator

Adding/subtracting fractions: Common denominator, e.g.:

1 3 7
+ =
4 2 4
2 3 29
+ =
5 7 35
7 5 −1
− =
12 8 24

Multiplying fractions: multiply numerators together and denominators together

𝑎 𝑐 𝑎𝑐
× =
𝑏 𝑑 𝑏𝑑

Dividing fractions: multiply by the fraction inverted

𝑎
𝑏 = 𝑎 × 𝑑 = 𝑎𝑑
𝑐 𝑏 𝑐 𝑏𝑐
𝑑

Section 1.4: Solving Equations

Solve LHS = RHS and find the value of x that satisfies it.

Three cases:
1) Unique solution: e.g. 𝑥 + 4 = 10
2) Infinitely many solutions: e.g. 𝑥 + 𝑦 = 10
3) No solution: e.g. 0(𝑥) = 5
Section 1.6: Simple Inequalities

- The inequality remains true when constants are added or subtracted to either sides of the
inequality sign, or when both sides of the inequality are multiplied or divided by positive
numbers or variables.
- The sign of the inequality changes when both sides of the inequality are multiplied or
divided by negative numbers or variables: < becomes > and vice versa.

Section 1.7: Calculating Percentages

A: Initial number B: Final number x: change

x%: percentage change (increase (+)/decrease (–))

To calculate a percentage:
𝑥
𝑥% 𝑜𝑓 𝐴 = ×𝐴
100

To find A or B:
Increase: 𝐵 = 𝐴(1 + 𝑥%)
Decrease: 𝐵 = 𝐴(1 − 𝑥%)

To find the percentage increase or decrease, x%:

𝐵−𝐴
𝑥% = × 100%
𝐴
If the answer is (+): increase, if the answer is (–): decrease

To find the numerical increase or decrease, X:

𝑋 = 𝐵−𝐴
Problems
Problem 1 (Arithmetic Operations on Fractions)
Simplify the following:
3 5
a- − =
2 3

10 1 3
b- + − =
3 6 2

2
c- (3 − 1) × 6 =

2
4+ 3
d- =
7

35 28
e- × =
12 15

1
7
f- =
5

5
g- 2 =
3
7
5
h- 4 =
10

3 4 1
i- ( × ) + =
5 7 5

3𝑥 3𝑥
j- − =
4 7
3
𝑥+1
k- 2𝑥 =
𝑥+3

3(4)
+4
2
l- =
5
Problem 2 (Equations and Inequalities)
Solve for x in the following:

(6−𝑥) (3𝑥−4)
a- =
4 2

2𝑥−3 𝑥+1
b- + = 𝑥−4
9 2

𝑥−3 𝑥+1
c- =
𝑥−1 𝑥+2

1 1 6
d- + = (𝑥+4)(𝑥−4)
𝑥+4 𝑥−4

𝑥−2 𝑥 𝑥
e- + >
5 3 2

–(𝑥+5) (10+3𝑥)
f- <
2 4

g- −4(2𝑥 − 2) = −(3𝑥 − 4)

Problem 3 (Percentage: Given A and x%, A and B, Unknown: B, x%)

John and his family own a gas station in Tripoli. On weekdays, 140 cars pass by their gas station.
During the weekend, the number of cars increases by 25%.

a) How many cars pass by the gas station during the weekend?

b) On holidays, the number of cars increases from 140 to 210.What is the percentage increase in
the number of cars during the holidays?

c) If John serves 30% of the cars all by himself. How many cars does John's family serve if 40
cars passed by?
Problem 4 (Percentage question)
In the BMTH 210 class, there are 40 students registered; where 60% are girls.
a) How many girls are there in the class?
b) What is the percentage of boys in the class?
c) Additional 6 boys are registered. Calculate the new percentage of boys.

Problem 5 (Percentage: Given A and +x1% and –x2%, Unknown: B)

Mohammad’s monthly income in 2016 is $1,500. He got a raise of 10% on his salary and got
deducted for taxes, which are 5% of his new income. What is his net income after the raise and
the taxes?

Problem 6 (Percentage: Given A and B, Unknown: x%)

In year 1, a company used 120,000 gallons of fuel oil at a cost of $0.75 per gallon. In year 2, the
company used 150,000 gallons at a cost of $0.80 per gallon.

By what percentage did the company’s total fuel cost increase from year 1 to year 2?

Problem 7 (Percentage: Given A1 and +x1% and +x2%, Unknown: B)

Fadi is a sales representative. His original salary is $15,000 per year. He earns an extra 10% of
his salary as a bonus at the end of the year for attaining his sales target. In 2015, Fadi closed a
big deal for his company generating a profit of $60,000 so his manager decided to give him a
reward of 4% of the profit he brought to the company. How much did Fadi earn in 2015?

Problem 8 (Percentage: Given x1% and x2%, Unknown: xtotal%)

Sarah decides to buy a dress. It is on sale at 20%. She has a coupon for an additional 10%. What
is the total discount (in %) that Sarah got on the dress?

Problem 9 (Percentage: Given B and x%, A and B, Unknown: A, x% + percentage question)

a) A television is on sale for 20%. The new price is $400. Find the value of the old price.

b) Sam buys a pair of jeans marked at $80 but only pays $65. What percentage discount was he
given?

c) Maya scored 32 out of 40 for a Math test and 41 out of 55 for a Science test. For which test
did she score a lower percentage?
Problem 10 (Percentage: Given x%, Unknown: Equation, B, A)
A store is increasing the price of all items by 4%. Assume an item costs $X. After undergoing
this increase it will cost $Y.
a- Compute Y in terms of X.
b- Using the above equation, answer the following questions:
1- An item costs $75 before the increase. Calculate the new price.
2- Another item was sold at $190. Find the price before the increase.

Problem 11 (Percentage: Given A and x%, Unknown: B)

Nicole wants a dress that is regularly priced $32.00. It is on sale at 25% off. Nicole’s mom says
that she will pay for half of the dress. How much money does Nicole need to buy the dress?

Problem 12 (Percentage: Given A and – x1% and – x2%, Unknown: B)

Zara is having a jeans sale. All jeans are on 25% sale. You have a coupon for an additional 20%
off any item.
a- How much would you pay for a pair of jeans that had an original price of $85?
b- Does the final discount on your jeans account for 45% sale on the original price?

Problem 13 (Percentage question)

An employee’s salary is $X. The company decides to increase salaries for all by 10%. After that,
the manager decides to give him a 5% increase on his salary due to his distinct effort.

What is the value of the percentage increase in this employee’s salary?

Problem 14 (Percentage question)

After the drop and add period was over on the second week of the semester, 44 students stayed in
BMTH210 class.

a. Knowing that 12% of the students dropped the course, how many students were
registered at the beginning of the semester?

b. During the third week of the semester, 5 students were added by force to the class:

1. What is the final number of students?

2. What is the percentage of these additional students?

 BMTH210 – Business and Managerial Mathematics
The Straight Line and Applications

Notes:

Section 2.1: The Straight Line

A straight line is defined by:

- Slope: represented by a or m
- Vertical intercept (the intercept): the point where the line crosses the y-axis, represented
by b or c

Straight line equation: 𝑦 = 𝑎𝑥 + 𝑏 OR 𝑦 = 𝑚𝑥 + 𝑐 (as used in the book)

Slope:
∆𝑦 𝑦2 − 𝑦1
𝑎= =
∆𝑥 𝑥2 − 𝑥1
∆: Stands for change, final – initial
∆𝑦 is positive when the line is rising ⇒ slope 𝑎 > 0 when line is rising
∆𝑦 is negative when the line is falling ⇒ slope 𝑎 < 0 when line is falling
∆𝑦 = 0 when the line is horizontal (𝑦 = constant) ⇒ slope 𝑎 = 0 when line is horizontal
∆𝑥 is always positive EXCEPT when the line is vertical then ∆𝑥 = 0 ⇒ slope 𝑎 =
not defined when line is horizontal; ∆𝑦 → ∞ as ∆𝑥 → 0 ⇒ slope 𝑎 → ∞

Interpretation of the slope:

y “increases (a > 0)/decreases (a < 0)” by “|a|” units as x increases by 1 unit.

- Lines with the same slope but different intercepts => these lines are parallel
- Lines with the same intercepts but different slopes => these lines intersect at the intercept
(y-axis)
- Lines with a1 x a2 = – 1 are perpendicular
- Lines with different slopes and different intercepts => these lines are different
- Lines with same slope and same intercept => these lines are identical

Vertical intercept (y-int.): the point where the line crosses the vertical axis (y-axis) [x = 0, y = b]
Horizontal intercept (x-int.): the point where the line crosses the horizontal axis (x-axis) [y = 0,
−𝑏
𝑥= ]
𝑎
To graph a straight line from its equation:
There are two forms:
1- 𝑦 = 𝑎𝑥 + 𝑏
Choose any two points (e.g. vertical and horizontal intercepts) and join them with a line
2- 𝑎𝑥 + 𝑏𝑦 + 𝑐 = 0
Re-arrange the equation into the form: 𝑦 = 𝑎𝑥 + 𝑏
Choose any two points (e.g. vertical and horizontal intercepts) and join them with a line

Section 2.4: More Mathematics on the Straight Line

If you are given two points, A (x1, y1) and B (x2, y2):
∆𝑦 𝑦 −𝑦
1- Find the slope: 𝑎 = ∆𝑥 = 𝑥2 −𝑥1
2 1
2- Find the equation by: 𝑦 − 𝑦1 = 𝑎 (𝑥 − 𝑥1 )
3- If 𝑥1 = 𝑥2 , then the slope does not exist (in the case of vertical lines), the equation of the
line becomes: 𝑥 = 𝑥𝐴 OR 𝑥 = 𝑥𝐵

Section 2.3: Applications: Demand, Supply, Cost, Revenue

Demand function: 𝑃 = 𝑎𝑄 + 𝑏, where a < 0

Supply function: 𝑃 = 𝑎𝑄 + 𝑏, where a > 0

Interpretations:
Demand:
a: Price demanded, PD, decreases by “a” units as quantity demanded, QD, increases by 1 unit.
b: Q = 0 => PD = b (maximum price) => at P = b the quantity demanded, QD, is zero (i.e. the
price should be lower than b)

Supply:
a: Price supplied, PS, increases by “a” units as quantity supplied, QS, increases by 1 unit.
b: Q = 0 => PS = b (minimum price) => at P = b the quantity supplied, QS, is zero (i.e. the price
should be higher than b)

The graph of the demand and supply functions is plotted in the first quadrant, where P and Q > 0
Cost:
Total Costs of Production = Variable Costs + Fixed Costs
𝑇𝐶 = 𝑉𝐶 + 𝐹𝐶
VC: depends on output, Q. 𝑉𝐶 = 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 × 𝑄
FC: independent of output, Q.

Revenue:
Total Revenue = Price x Quantity Sold
𝑇𝑅 = 𝑃 × 𝑄

Profit:
𝜋 = 𝑇𝑅 − 𝑇𝐶
𝜋 > 0 ⇒ 𝑇𝑅 > 𝑇𝐶 ⟹ gain
𝜋 = 0 ⇒ 𝑇𝑅 = 𝑇𝐶 ⟹ no profit (break-even)
𝜋 < 0 ⇒ 𝑇𝑅 < 𝑇𝐶 ⟹ loss
Problems

Problem 1 (slope, intercepts, P = f(Q), Q = f(P))

Consider the graph of the line shown below.

a- What are the intercepts of the graph?

X-intercept ………………. Y-intercept ………………
b- What is the slope of the line shown in the graph?
c- Give a verbal description of the slope.
d- Write down the equation of the line shown in the graph.
e- Suppose the demand of a good in the market is given by P  50  2Q . Express Q as a
function of P [Q = f(P)]. What is the value of Q when the price is 20?
Problem 2 (Equation of a line: given 2 points)

Sara wants to celebrate her birthday, so she invited her friends and family members for dinner.
Sara noticed that if she asks 2 of her friends for help, she would finish the preparations in 3
hours. And if she asks 3 of her friends for help, she would finish in 1 hour.

a) Determine the dependent and independent variables (number of friends helping and hours
of preparation) and write down the two points given in the text.

b) Find the slope. Interpret it.

c) Write the line equation representing the number of friends helping and the hours of
preparation. (Equation form: 𝑦 = 𝑎𝑥 + 𝑏)

d) Find the horizontal and vertical intercepts. Interpret them both.

e) Draw the line of the equation found in part c for 0 ≤ 𝑥 ≤ 4.

f) Give the equation of a line parallel to the equation found in part d.

Problem 3 (Straight line equations and relationships between lines)
Given:

 two points K (0, 8) & D (8, 4)---------(1) Equation: ___________________

 slope (a = + 2) and y-intercept (b = + 4)--------(2) Equation: __________________
 a straight line equation AB: 𝑦 = 2𝑥 + 3 -------------(3)
 a straight line equation (d): 2𝑦 − 4𝑥 − 6 = 0 -------------(4) Equation: ________________

a- Find the slope of the straight line passing through K and D then deduce the equation.
(Write it above where indicated)
b- Find the equation of the straight line with a slope (a = + 2) and y-intercept (b = + 4).
(Write it above where indicated)
c- What relation can you draw between the first two lines?
d- Determine the slope of the straight line (AB) and give a verbal description.
e- What relation can you draw between the second and third lines?
f- Write down the equation of (d) in the form 𝑦 = 𝑎𝑥 + 𝑏. (Write it above where
indicated)
g- What relation can you draw between the third and fourth lines?

Problem 4 Change of equation form, and given a point and slope)

Part A
Given the equation of a line is as follows:
2𝑦 – 5𝑥 + 10 = 0

a) Write the equation in the form 𝑦 = 𝑓(𝑥)

b) Calculate the intercepts.
c) What is the slope of this line?

Part B
a) Find the equation of the straight line that has a slope m = 4 and passes through the point
(-1, 6).
b) Give a verbal description of the slope.
Problem 5 (Equation of a line given a graph)
The below graph provides X-Y coordinates and plots a line

a- From the above graph, do you expect the slope of the line to be positive or negative?
b- Derive the equation of the line shown in the above graph

Problem 6 (Supply)
The supply function of chairs production is given by the equation: 𝑷 = 𝟏𝟎 + 𝟓𝑸, where P and
Q are the price and the quantity of chairs.
a- What happens to the price if the quantity Q increases by 1 chair?
b- Find the price when Q = 0.
c- Find the quantity when P = 60.
d- Write the equation of the supply function in the form Q = f(P).

Problem 7 (Demand)
The demand function is given by the equation 𝑷 = 𝟓𝟎 − 𝟎. 𝟓𝑸
a- State and give a verbal description of the slope and the intercepts.
b- What is the quantity demanded when P = 30?
c- Plot the demand function.
d- Find an expression for the demand function in the form Q = f(P).

Problem 8 (TC, TR)

The fixed costs of production in a firm are $200 and the variable costs are $55 per unit produced.
a- Write down the equation of the total cost function.
b- Graph the total cost function.
c- If the quantity sold is 1000 units per month at a price of $300 per unit, write down the
equation of the total revenue function, and calculate the total revenue per year.
Problem 9 (TC and TR)
Given the following Total Cost and Total Revenue functions:
𝑻𝑪 = 𝟐𝑸 + 𝟐𝟎 & 𝑻𝑹 = 𝟒𝑸
a- Determine FC and VC in the total cost function.
b- Write down the slope of the total cost function and give its verbal description.
c- Check if the point A (20, 0) belongs to the given total cost function. (Hint: substitute it in
the given equation)
d- Find the quantity when the total cost equals to zero. Is it accepted in economics?
e- Using Method A, sketch the total revenue function: (TR = 4Q).

Q
TR

Problem 10 (TC, TR, and profit)

A firm that produces chairs has monthly fixed costs of $150 and a variable cost of $4 per unit
produced. If each unit is sold for $12:
a- Write the expression of the total costs TC.
b- Write the expression of the total revenue TR.
c- Find the total costs when Q = 50.
d- Find the total revenue when Q = 50.
e- Find the profit at Q = 50.
f- What happens to TR if Q increases 1 unit?

Problem 11 (TR, TC, Demand, and Supply)

a- If the price of an article is $17 then find the total revenue TR if the demanded quantity Q =
100.
b- If the fixed cost is FC = $10 while the unit variable cost is VC = $5. Write down the
equation of the total cost TC in terms of quantity Q.
c- Given the demand equation 𝑃𝑑 = – 0.5𝑄 + 10. What is the quantity demanded for free?
d- At unit price $11 the quantity supplied is 6 units, while at $13 the quantity becomes 10
units. Give the supply equation.
 BMTH210 – Business and Managerial Mathematics
Simultaneous Equations

Notes:

Section 3.1: Solving Simultaneous Linear Equations

To solve for one unknown, x, only one equation is needed.

- Move the variable term to one side and all other terms to the other side
- Use addition/subtraction and multiplication/division to find x

To solve for two unknowns, x and y, two equations are needed.

- Rewrite the equations the same way so they can be added or subtracted
- Multiply the equations by the appropriate multiplier to eliminate one variable
- Solve as if it is an equation with one unknown to find either x or y
- Substitute the variable found in one of the two equations to find the second unknown

Three cases when solving two equations in two unknowns:

1- Unique solution: when the two lines intersect at one point
e.g.: 𝑥 + 3𝑦 = 4
−𝑥 + 2𝑦 = 6

2- No solution: when the lines are parallel, i.e. they have the same slope
e.g.: 𝑦 = 1 + 𝑥
𝑦 =2+𝑥

3- Infinitely many solutions: when it is the same line expressed by two equations
e.g.: 𝑦 = 2 − 𝑥
2𝑦 = 4 − 2𝑥
Section 3.2: Equilibrium and Break-even

Goods Market Equilibrium: 𝑄S = 𝑄D and 𝑃S = 𝑃D

Note: once the equilibrium condition is stated, Q and P are used to refer to the equilibrium
quantity and price respectively, i.e. no need for the subscripts S and D.

Equilibrium in Demand and Supply:

For P < Pequilibrium: QD > QS => shortage = QD – QS

For P > Pequilibrium: QD < QS => surplus = QS – QD

Break-even analysis:
The break-even point: 𝑇𝑅 = 𝑇𝐶 or 𝜋=0

Note: when TR and TC are both straight lines, they intersect at one point, which is the break-even
point.
- For Q < Qbreak-even: TR < TC =>  < 0: loss
- For Q = Qbreak-even: TR = TC =>  = 0: break-even (no gain, no loss)
- For Q > Qbreak-even: TR > TC =>  > 0: profit/gain
Problems

Problem 1 (Solving Simultaneous equations)

Solve the following equations:

2𝑦 = 14𝑥 − 1 6
𝑦 = 𝑥+5
a) { 1 𝑑) { 30
𝑦 = 7𝑥 − 𝑦 = 0.2𝑥 − 6
2

6𝑥 − 2𝑦 = 1 2𝑃 − 𝑄 = 50
b) { 𝑒) {
𝑦 − 3𝑥 = 4 10𝑃 − 5𝑄 = 250

𝑦 = 4𝑥 + 2 2𝑥 − 3𝑦 − 1 = 0
c) { 𝑓) {
𝑦 + 2𝑥 = 3 𝑦 =𝑥+1

Problem 2 (Equilibrium)
Given the following supply and demand function:
Ps = 0.3Qs + 30
Pd = -0.7 Qd + 90
a) Plot the demand and the supply function on the same graph.
b) Indicate the equilibrium point on the graph.
c) Solve the equilibrium price and quantity numerically.
Problem 3 (Demand and supply equations, Equilibrium, Surplus/Shortage)

At the price of $300 for a product, the quantity demanded is zero. If the quantity demanded
increases by 1 unit, the price decreases by $20.
At the price of $60 of the product, the quantity supplied is zero. If the quantity supplied increases
by 2 units, the price increases by $40.

a) Write the demand and supply functions in the form of P = f(Q)

b) Write the demand and supply functions in the form of Q = f(P)
c) Calculate the equilibrium price and quantity algebraically.
d) Calculate quantity demanded and supplied when price is $120. How much of a shortage or a
surplus is there in the market?

Problem 4 (Demand & supply, Equilibrium, Surplus/shortage)

Given the following demand and supply functions along with their graphs.
𝑃 = 80 − 𝑄
𝑃 = 20 + 2𝑄
P
180

120

60

Q
-40 -30 -20 -10 10 20 30 40

-60

-120

-180

a) Identify on the graph the demand function, the supply function and the equilibrium point.
b) Use the equations to determine equilibrium algebraically.
c) The price is now $70. Find the quantity demanded and the quantity supplied. Deduce
what is the state of the market?
Problem 5 (Equilibrium, Shortage/Surplus)

Senior students of a school want to raise money for their graduation. To do so, they baked and
sold cupcakes. The demand and supply equations are the following:
(D): 𝑄 = −0.5𝑃 + 100
(S): 𝑃 = 8𝑄 + 50

a) Find the inverse equation of the demand, 𝑃 = 𝑓(𝑄).

b) Algebraically, calculate the equilibrium price and the equilibrium quantity.
c) What would the quantity demanded be if the cupcakes were given for free?
d) Suppose the market price is set at $200, what would happen in the market? Shortage or
surplus? How large is the shortage or surplus?

Problem 6 (Break-even and Equilibrium)

Part A (Break-even)
Two firms, A and B, have identical total revenue and total cost functions as shown below:
Firm A: 𝑻𝑹A = 𝟔𝑸 and 𝑻𝑪A = 𝟑𝟎𝟎𝟎 + 𝟓. 𝟐𝟓𝑸
Firm B: 𝑻𝑹B = 𝟔𝑸 and 𝑻𝑪B = 𝟑𝟎𝟎𝟎 + 𝟓. 𝟐𝟓𝑸
a) Find the break-even quantity for each firm.
b) If fixed costs of firm A increase by 50%. What is the effect on the break-even quantity
for this firm?
c) Assume Firm B shuts down. Compute the total cost.

Part B (Equilibrium)
The market for beer has supply and demand curves given by:
𝑷s = 𝟑𝟖 + 𝟎. 𝟎𝟎𝟑𝑸s
𝑷D = 𝟏𝟑𝟐 – 𝟎. 𝟎𝟎𝟓𝑸D
a) Compute the equilibrium price & quantity.
b) If beer is given for free. What will be the quantity demanded?

Problem 7 (TC, TR, Break-even)

Given for a certain product: fixed costs as $20, unit cost as $3 and unit selling price as $5:

a) Write down the equation of the total cost TC in terms of quantity Q.

b) Write down the equation of the total revenue TR in terms of Q.
c) Find algebraically the Break Even point.
d) For what quantities Q would profit be achieved?
Problem 8 (TC, TR, Profit)
A small canteen has weekly fixed costs of $1200. The variable cost is $4 per meal and sold at a price $ 6
each.

a) Find the equation of total cost function.

b) Calculate the total cost of producing 125 meals weekly.
c) Find the equation of total revenue function.
d) Calculate the number of meals sold when total revenue is $750.
e) Calculate the profit when 125 meals are sold weekly.

Problem 9 (TC, TR, Profit, Break-even)

The Demand Function for a firm is given as 𝑃 = 300. The firm has fixed costs of $2,000 and a
variable cost of $50 per unit sold.
a) Find the equations of the Total Cost and the Total Revenue.
b) Find the expression of profit.
c) What is the Break-even quantity? Calculate the value of the Total Revenue and the Total
Cost at the Break-even point.

Problem 10 (TC, TR, Profit, Break-even, Loss/Profit)

A firm that manufactures eyes glasses has a fixed cost of 5000 per month, and a cost of $15 per glasses.
The firm’s selling price is $ 45 for each eye glasses.

a) Write down the total cost and total revenue equation.

b) Find the profit equation.
c) Find the break-even quantity, and TR and TC at break-even.
d) Graph TR and TC and indicate on the graph where there is profit, where there is loss and
the break-even points.
Problem 11 (Break-even, Profit/Loss)
Suppose a book shop has total revenue and total cost functions given as follows:
𝑻𝑹 = 𝟐𝟎𝑸
𝑻𝑪 = 𝟖𝟎 + 𝟏𝟓𝑸
a) Calculate the equilibrium quantity algebraically at the break-even point.
b) Calculate the value of total revenue and total cost at the break-even point.
c) Does the book shop make a profit or loss when 10 books are sold? And when 17 books
are sold?
Problem 12 (TC, TR, Break-even)
Given the below functions of TR and TC of a certain good produced by a medical firm.

a) Deduce from the above graph the:

i. Fixed cost FC
ii. Cost/unit
iii. Total Cost TC
iv. Total Revenue TR
v. Breakeven quantity:

b) Determine the breakeven quantity algebraically.

c) Does this medical firm gain or lose when producing:
i. 20 items? Why?
ii. 50 items? Why?
 BMTH210 – Business and Managerial Mathematics
Non-Linear Functions and Applications

Notes:

Section 4.1: Quadratic Functions

Quadratic function: 𝑦 = 𝑎𝑥 2 + 𝑏𝑥 + 𝑐
Quadratic equation: 𝑎𝑥 2 + 𝑏𝑥 + 𝑐 = 0, where a, b, and c are constants.

To solve a quadratic equation means to find the values of x (the roots) that satisfy the
equation:
Find ∆ = 𝑏2 − 4𝑎𝑐
− (𝑏)−√∆ − (𝑏)+√∆
a. If ∆ > 0 ⇒ 2 different and real solutions: 𝑥1 = & 𝑥2 =
2𝑎 2𝑎
− (𝑏)
b. If ∆= 0 ⇒ 2 identical solutions (1 double solution): 𝑥1 = 𝑥2 = 2𝑎
− (𝑏)−√∆ − (𝑏)+√∆
c. If ∆ < 0 ⇒ 2 different and complex solutions: 𝑥1 = & 𝑥2 =
2𝑎 2𝑎
Note: 𝑖 2 = −1 → √𝑖 2 = √−1 → 𝑖 = √−1

The real roots of the quadratic equation f(x) = 0 are the points of intersection of the curve
with the x-axis (as in parts a and b).

The complex roots are NOT the intersection with the x-axis; in fact when an equation has
complex roots, it has no intersection with the x-axis (as in part c).

The turning point can be a maximum (if a < 0) or a minimum (if a > 0) point on the curve.
The turning point lies halfway between the roots (solutions) of the quadratic function.
To find the (x, y) of the tuning point:
1. Find the roots (x1 and x2) of the equation corresponding to the curve
𝑥 +𝑥 −𝑏
2. 𝑥turning point = 1 2 2 Or 𝑥turning point = 2𝑎
3. Substitute 𝑥turning point into the equation of the curve to find 𝑦turning point

Equilibrium in Demand and Supply:

For P < Pequilibrium: QD > QS => shortage = QD – QS
For P > Pequilibrium: QD < QS => surplus = QS – QD

Break-even:
For Q < Qbreak-even, 1:TR < TC: loss
Page 1 of 8
For Qbreak-even, 1 < Q < Qbreak-even, 2: TR > TC: profit
For Q > Qbreak-even, 2: TR < TC: loss

Section 4.2: Exponential Functions

Exponential function: 𝑦 = 𝑎 𝑥 , or 𝑓(𝑥) = 𝑎 𝑥 ,

where a is a constant (the base) and x is the variable, and it is the index or power of the
exponential function.

 If x > 0 and a > 1: the curve is increasing: growth curve (𝑥 ↑ 𝑦 ↑)

 If x < 0 and a > 1: the curve is decreasing: decay curve (𝑥 ↑ 𝑦 ↓)

Rules:

 𝑎0 = 1
 𝑎1 = 𝑎
1
 = 𝑎−𝑛
𝑎𝑛
 𝑎𝑚 × 𝑎𝑛 = 𝑎𝑚+𝑛
 𝑎𝑚 ⁄𝑎𝑛 = 𝑎𝑚−𝑛
 (𝑎𝑚 )𝑘 = 𝑎𝑚×𝑘
𝑎 𝑥𝑏 𝑦 𝑛 𝑎 𝑛𝑥 𝑏𝑛𝑦
 ( ) =
𝑐𝑧 𝑐 𝑛𝑧
 √𝑎 = 𝑎 1⁄2


𝑛
√𝑎 𝑥 = 𝑎𝑥⁄𝑛

Applications of exponential functions:

Unlimited Growth: 𝑦(𝑡) = 𝑎𝑒 𝑟𝑡 , where a and r are constants, and t is the variable
a: starting point, y(t) = a when t = 0
r: growth rate at which y is growing, r x 100 = growth percentage
t: time
e.g.: investments, some models of population growth

Limited Growth: 𝑦(𝑡) = 𝑀(1 − 𝑒 −𝑟𝑡 ), where M and r are constants, and t is the variable
M: limit, maximum value: when 𝑡 = ∞ ⇒ 𝑒 −𝑟𝑡 = 0 ⇒ 𝑦(𝑡) = 𝑀
r: growth rate at which y is growing, r x 100 = growth percentage
t: variable (e.g. time, income, etc…
Note: when 𝑡 = 0 ⇒ 𝑒 −𝑟𝑡 = 1 ⇒ 𝑦(𝑡) = 0
e.g.: consumption functions
Section 4.3: Logarithmic Functions

Page 2 of 8
  log(10) = 1
 ln(𝑒) = 1
 log10 (𝑎) = log(𝑎)
 log 𝑒 (𝑎) = ln(𝑎)
 log(10)𝑎 = 𝑎
 ln(𝑒)𝑎 = 𝑎
 𝑒 ln(𝑎) = 𝑎
 10log(𝑎) = 𝑎
 log(1) = ln(1) = 0

Some rules that apply to both log and ln:

 log(𝑎) + log(𝑏) = log(𝑎 ∗ 𝑏)
𝑎
 log(𝑎) − log(𝑏) = log (𝑏 )
 log(𝑎)𝑏 = 𝑏 log(𝑎)
log(𝑎) ln(𝑎)
 log 𝑏 (𝑎) = log(𝑏) = ln(𝑏)

Note:
 log(𝑥 < 1) < 0 negative
 log(𝑥 > 1) > 0 positive
 log(𝑥 < 0): complex number
 log(𝑥 > 0): real number

Notes: To solve for x:

1- If the variable x is an exponent (a power, an index), we use “ln” or “log” to make it
linear:
ln(10)
e.g.: 2𝑥 = 10 ⇒ ln(2𝑥 ) = ln(10) ⇒ 𝑥 ln(2) = ln(10) ⇒ 𝑥 = ln(2) = 3.32
2- If the variable is in the base, we raise it to the inverse of the power.
e.g.: (𝑥 + 5)3 = 7 ⇒ ((𝑥 + 5)3 )1/3 = 71/3 ⇒ 𝑥 + 5 = 71/3 ⇒ 𝑥 = 71/3 – 5 =– 3.087

Page 3 of 8
Problem 1 (Quadratic Equation: roots and vertex)
a- Write the general form of the quadratic equation
b- What is the maximum number of solutions that a quadratic equation can have?
c- Solve the equation: 2x2 + 4x – 6 = 0
d- Find the coordinates of the vertex (turning point) and determine whether it is a
maximum or a minimum with justification.

Problem 2 (Quadratic Equations: roots, graph, and turning point)

a- Solve the following equation: y = x2 – 6x + 8
b- Classify the type of solutions found as real or imaginary and as different, real or
repeated.
c- Sketch the graph of y = x2 – 6x + 8 for 0 ≤ x ≤ 5.
d- Calculate the coordinates of the turning point.

Problem 3 (Quadratic Equations: TR, TC, Profit, Break-even, Max. profit, Max. TR)
If fixed costs are $126, variable cost per unit is $3, and the demand function for a certain
product is 𝑷 = – 𝟔𝑸 + 𝟔𝟑
a- Find the equation of the total revenue (TR) function.
b- Find the equation of the total cost (TC) function.
c- Plot the total revenue and total cost functions on the same diagram.
d- Find the break-even points graphically and confirm your answer algebraically.
e- Deduce the profit (π) function then sketch its graph on a separate diagram.
f- Find the value of Q that maximizes the profit. Then deduce the maximum profit
(πmax).
g- Find the value of Q that maximizes the total revenue. Then deduce the maximum
total revenue (TRmax).

Problem 4 (Quadratic Equations: Profit, Break-even, Max. profit)

A firm that produces chocolate has a fixed the following profit function:

𝜋 = −𝑄2 + 8Q − 12

a) Calculate the breakeven quantity.

b) Find the quantity that maximizes the Profit.
c) Deduce from part b the max profit (𝜋max).
d) How much should the firm produce chocolate to make gain?

Page 4 of 8
Problem 5 (Quadratic Equations: TR, TC, Profit, Break-even, Max. profit, graph)

Given the total cost (TC) function and the demand function for a certain product:

P =-5Q + 62 TC = 2Q + 100

a) Find the equation of the total revenue (TR) function.

b) Find the break-even points algebraically.
c) Deduce the profit (π) function.
d) Find the value of Q that maximizes the profit. Then deduce the maximum profit
(πmax).

e) Graph the profit function

π

80

70

60

50

40

30

20

10

1 2 3 4 5 6 7 8 9 10 Q

Page 5 of 8
Problem 6 (Quadratic Equations: TR, Max. TR, Break-even)

Given the demand function in a monopoly market by 𝑷 = 𝟏𝟎 − 𝟎. 𝟏𝑸.

a) Find the total revenue function TR. Is this function quadratic or linear? Why?
b) Determine the horizontal intercepts of TR.
c) What is the quantity produced to attain maximum total revenue?
d) Determine the TR maximum.
e) What are the Breakeven quantities if the total cost function is given by TC=5+2Q?

Problem 7(Quadratic Equations: TR, TC, Profit, Break-even, Max. profit, graph)

Given: 𝑻𝑹 = – 𝟒𝑸𝟐 + 𝟖𝑸 & 𝑻𝑪 = 𝟑𝑸 + 𝟏

a) Sketch the total revenue and the total cost over the interval 0 ≤ Q ≤ 2.
b) Find the break-even quantities.
c) Find Q when TR = 0 (x-intercept/roots).
d) Find the value of Q that maximizes the TR then deduce the maximum total revenue.
e) Find TR when Q = 0 (y-intercept).
f) Deduce the profit equation.
g) From the profit equation, deduce the break-even quantities.
h) Find the value of Q that maximizes the profit. Then deduce the maximum profit
(πmax)
i) Find (π) when Q = 0 (y-intercept).
j) Graph the profit function over the interval 0 ≤ Q ≤ 1.5.

Problem 8 (Quadratic Equations: TR, TC, Max. TR, Break-even, graph)

A firm’s total cost function is given by the equation𝑇𝐶 = 200 + 3𝑄, while the demand function is
given by the equation𝑃 = 107 − 2𝑄.

a) Write down the equation of the total revenue function.

b) Graph the total revenue function for 0 ≤ 𝑄 ≤ 60. Hence, estimate the output, Q, and total
revenue when total revenue is a maximum.
c) Plot the total cost function on the same diagram as part (b). Estimate the break-even point
from the graph. Confirm your answer algebraically.
d) State the range of values for Q for which the company makes a profit.

Page 6 of 8
Problem 9 (Logarithmic and Exponential Expressions
Solve the following equations
a- 4x = 128
b- 3r = 1
c- 22x +3 – 1 = 0
d- 92- x = 816x
e- 5x = 1/125
f- 34 – x – 7 = 74
g- 42x – 1 = 5x +2
h- Log(x – 1) = 2
i- Log x + log x +9 = 1
j- Log (3x2 + 2x – 4) = 0
k- Log3 √x = 1
l- Log4 x = – 1.5
m- Log (x + 3000) = 3.7
n- 3 x 3 x 9  8
o- 2 ln 𝑥 = ln(2𝑥 − 1)

p- 7 + 15𝑒 (1−3𝑥) = 10
q- Log(x + 1) = Log ( 𝑥 2 )
r- log(3𝑥 + 1)5 = 10

Problem 10 (Unlimited Growth)

The population of Bahamas is given as follows: P = 321𝑒 0.39𝑡

a) Is it a limited or unlimited growth function (as t →∞)?

b) What is the growth rate?
c) What is the estimated population after 5 years?
d) Sketch the graph of the function over 0< t < 10

Page 7 of 8
Problem 11 (Unlimited Growth)
During a boom a firm's revenue increases continuously so that the revenue, TR (measured in
millions of dollars), in t years' time is modeled by

𝑻𝑹 = 𝟏𝟓𝒆𝟎.𝟑𝒕

a- Is it a limited or an unlimited growth function (as t  ∞)?

b- If t = 0 at the beginning of 1998, calculate the total revenue at the beginning of
1998.
c- Calculate the total revenue at the end of 1998.
d- Calculate the total revenue at the end of 24 months.
e- Calculate the total revenue at the end of 2004.
f- Calculate the total revenue at the end of 10 years.
g- Estimate the number of years needed to reach TR = 548.769 millions of dollars.
Then mention the year.

Problem 12 (Limited Growth)

Consumption (measured in millions of dollars) for a certain household is expected to grow

in t years according to the following function: 𝐶 = 50(1 − 𝑒 −0.1𝑡 )

a. Is it a limited or an unlimited growth function (as t → ∞)?

b. Determine the growth rate.
c. What is the consumption limit as t → ∞?
d. Find the amount consumed after 5 years.
e. After how many years will the consumption grow to reach approximately $31.6
million?
f. Sketch the graph of the function over 0 < 𝑡 < 20.

Page 8 of 8
 BMTH210 – Business and Managerial Mathematics
Financial Mathematics
Notes:

Section 5.1: Arithmetic and Geometric Sequences and Series

Arithmetic Sequence: 𝑎, 𝑎 + 𝑑, 𝑎 + 2𝑑, 𝑎 + 3𝑑, 𝑎 + 4𝑑, … … … , 𝑎 + (𝑛 − 1)𝑑

Arithmetic sequence is a sequence of numbers obtained by adding a constant d to the previous
term, and d can be a positive (+) or a negative (–) number.

To find the common difference: 𝑑 = 𝑇2 − 𝑇1 = 𝑇𝑛 − 𝑇𝑛−1

To find the nth term: 𝑇𝑛 = 𝑎 + (𝑛 − 1)𝑑 OR 𝑇𝑛 = 𝑇1 + (𝑛 − 1)𝑑

Arithmetic Series: the sum of the terms of an arithmetic sequence.

𝑛 𝑛
To find the sum of the first n terms: 𝑆𝑛 = 2 [2𝑎 + (𝑛 − 1)𝑑] OR 𝑆𝑛 = 2 [2𝑇1 + (𝑛 − 1)𝑑]
Where a: first term, T1
d: common difference
n: number of terms of interest

Geometric Sequence: 𝑎, 𝑎𝑟, 𝑎𝑟 2 , 𝑎𝑟 3 , 𝑎𝑟 4 , … … … , 𝑎𝑟 𝑛−1

Geometric sequence is a sequence of numbers obtained by multiplying the previous term by a
constant r, and r can be a whole number or a fraction.

𝑇 𝑇
To find the common ratio: 𝑟 = 𝑇2 = 𝑇 𝑛
1 𝑛−1

To find the nth term: 𝑇𝑛 = 𝑎𝑟 𝑛−1 OR 𝑇𝑛 = 𝑇1 𝑟 𝑛−1

Geometric Series: the sum of the terms of a geometric sequence.

𝑎(𝑟 𝑛−1) 𝑎(1−𝑟 𝑛 )

To find the sum of the first n terms: 𝑆𝑛 = (if r > 1) OR 𝑆𝑛 = (if r < 1)
𝑟−1 1−𝑟
Where a: first term, T1
r: common ratio
n: number of terms of interest
Section 5.2: Simple Interest and Compound Interest

Simple Interest:

𝐼 = 𝑃0 ∙ 𝑖 ∙ 𝑡
𝑃𝑡 = 𝑃0 + 𝐼 OR 𝑃𝑡 = 𝑃0 (1 + 𝑖𝑡)

where 𝑃𝑡 : future value

𝑃0 : present value
𝑖: interest rate
𝐼: the amount of interest received after t years
𝑡: number of years

Compound Interest (Several [m] times per year):

𝑖 𝑡×𝑚
𝑃𝑡 = 𝑃0 (1 + )
𝑚

where 𝑃𝑡 : future value

𝑃0 : present value
𝑖: interest rate
𝑚: conversion periods per year
𝑡: number of years

Conversion Periods Annually Semi-annually Quarterly Monthly Weekly Daily

m 1 2 4 12 52 365

Compound Interest (continuously/ m  ∞/ maximum amount that can be received):

𝑃𝑡 = 𝑃0 𝑒 𝑖𝑡
Problems

Problem 1 (Arithmetic and Geometric Sequences and Series)

Given the following sequences:
1 1
A. 8, 4, 2, 1, 2 , 4 , … … …
B. 3, 12, 48, 192, 768, … … …
C. 8, 12, 16, 20, … … …
1 3 5 7
D. 4 , 4 , 4 , 4 , … … …
1 1 1 1
E. , , , ,………
3 9 27 81

Answer the following questions for each sequence:

a- Is it a Geometric or Arithmetic sequence? Justify.

b- Determine the first term (a) and the common ratio (r) or common difference (d).
c- Find the value of the 9th term.
d- Find the sum of the first 16 terms.

Problem 2 (Arithmetic Series)

A company produces mobile phones. It starts production at 1000 phones per week and plans to
increase output by increasing phone production. It decides to add a certain amount “d” to
reach 3800 mobile phones after 15 weeks of production.

a- Determine if it is a geometric or arithmetic series.

b- Calculate the common difference d.
c- Calculate the number of phones produced in week 10.
d- Calculate the total number of phones produced over the first 15 weeks of production.

Problem 3 (Arithmetic Series)

Independent parts
a- Find the first three terms of the arithmetic sequence whose 6 th term T6 = 5 and common
3
difference 𝑑 = 2.
b- Given an arithmetic sequence whose T3 = 55 and T4 = 60. Find the common difference,
d, and the first term, a.
c- Given an arithmetic sequence whose T4 = 93 and T8 = 65. Find the common difference, d,
and the first term, a.
Problem 4 (Geometric Series)
Independent parts
a- Find the first three terms of the geometric sequence whose 4th term T4 = – 4 and common
ratio 𝑟 = −2
b- Given a geometric sequence whose T3 = 64 and T4 = 32. Find the common ratio, r, and
the first term, a.
5
c- Given a geometric sequence whose T5 = 4 and T12 = 160. Find the common ratio, r, and
the first term, a.

Problem 5 (Arithmetic and Geometric Series)

Answer the following: (all parts are independent)
a- In an arithmetic series T1 = 3, T2 – T1 = 4. What are the first 3 numbers of this series?
b- If the first 3 terms in an arithmetic series are 24, 15, 6 then what is the 16th term?
c- Find r for the geometric series whose first three terms are 4, 8, and 16.
d- Given the first two terms of a geometric series as 4 and 8, what is the sum of the first 10
terms?

Problem 6
Part A: (Simple Interest)
Rami has $1,500 in his bank account. He earns simple interest of 8% per year.

a- Deduce the value of the account (𝑃𝑡 =?) after 3 years.

b- Suppose Rami wishes to buy a car for $4,500. Will he be able to buy it after 3 years? (No
calculation needed)

Part B: (Interest compounded semi-annually)

Calculate the present value (𝑃0 =? ) of $20,000 to be received in 5 years’ time when the discount
rate is 5% per year, compounded semi-annually.

Problem 7
Part A: (Simple interest)
A savings account of $8,000 earns simple interest of 6% per annum.

a- Calculate the amount (I =?) received after 5 years.

b- Deduce the value of the account (𝑃𝑡 =?) after 5 years.

Part B: (Interest compounded semi-annually)

Mohammad is saving $5,000 in a bank X for 3 years at 8% per annum compounded semi-
annually. Calculate the total value of the amount.
Problem 8

Part A (Interest compounded continuously, Interest compounded monthly)

Jim places $1,000 in a bank account that pays 5.6% compounded continuously. After one year,
will he have enough money to buy a computer system that costs $1,060?

If another bank will pay Jim 5.9% compounded monthly, is this a better deal?

Part B (Interest compounded annually)

If $3,000 is invested for eight years and grows to $4,500 at an annual rate of interest i%.
Calculate i.

Problem 9 (Simple interest)

Independent parts

a- A savings account of $12,000 earns simple interest of 6% per annum.

1- Calculate the amount (I =?) received after 7 years.
2- Deduce the value of the account (Pt =?) after 7 years.

b- Hassan is expecting to have Pt = $60,000 in his savings account in 5 years’ time with
simple interest at 5% per annum.
1- Calculate the present value (P0 =?) that should be installed to have the $60,000 in 5
years.
2- Deduce the amount (I =?) that will be received after 5 years.

Problem 10 (Compound interest)

Independent parts

a- Calculate the present value (P0 =?) of $6,500 to be received in two years’ time when the
discount rate is 8% per annum, compounded annually.
b- $700 is invested at nominal interest rate of 6% per annum.
Calculate the amount due (Pt =?) at the end of 7 years if interest is compounded semi-
annually.
c- Calculate the annual rate of interest (i =?) required for $10,000 to become $80,000 in 15
years. Assume quarterly compounding.
d- A bank pays 8% interest compounded annually.
Calculate the number of years (t =?) it will take for $100,000 to grow to its doubled value?
e- A family wants to start a child education plan to pay for their daughter’s university tuition
in 18 years. The total 4-year tuition will cost $100,000. They have $10,000 to invest now at
a continuously compounded interest rate, i. Find i. If a bank is willing to give them a rate
of 10% compounded continuously, will it suffice?
Problem 11 (Interest compounded quarterly)
As a graduation gift, your parents opened a bank account with $5,000 under your name. This
account pays 5% interest rate per annum; compounded quarterly. If you decided to save the
money over two years, by how much will your balance increase after two years?

Problem 12 (Simple interest, compounded annually and quarterly)

Answer the following (all parts are independent)

a- Consider the total value of a $4,000 principal after 2 years in a savings account, which
pays 7% per year without compounding. Compute the future value.
b- How much should a person deposit now to yield $3,000 at the end of 4 years with interest
compounded annually at 5% per year?
c- Find the present value of $7,500 5 years from now if interest is compounded quarterly at an
8% annual interest rate.
d- If a sum of $7,000 is invested at an annual rate of 8% that is quarterly compounded. What
is the time needed to become $10,500?

Problem 13 (Interest compounded semi-annually, interest compounded continuously)

(Independent Parts)

a- For their newborn child, parents deposit $10,000 in a college account that pays 8% interest,
compounded semi-annually. How much will there be in the account on the child’s 17th
birthday?

b- A woman deposits $10,000 in a savings account paying 6% interest compounded

continuously. Find the time needed for the balance in her account to be $13,000.

Problem 14
(Independent Parts)

a- Calculate the present value P0 of $5,000 to be received in 5 years when the discount rate is
8% per annum compounded continuously.

b- Find the annual interest rate i required for a bank deposit of $10,000 to grow to $15,000
after 4 years if the interest is compounded monthly.
 BMTH210 – Business and Managerial Mathematics
Differentiation and Applications

Notes:

Section 6.1 and 6.6: Differentiation Rules

Rule 𝒚 𝒅𝒚
𝒚′ =
𝒅𝒙
𝑥𝑛 𝑛 ⋅ 𝑥 𝑛−1
Power Rule
𝑘 ⋅ 𝑥𝑛 𝑘 ∙ 𝑛 ⋅ 𝑥 𝑛−1

Chain Rule 𝑢𝑛 𝑛 ∙ 𝑢′ ⋅ 𝑢𝑛−1

𝑒𝑥 𝑒𝑥
Exponential Rule
𝑒𝑢 𝑢′ ⋅ 𝑒 𝑢

ln 𝑥 1
Ln Rule 𝑥
ln 𝑢 𝑢′
𝑢

Product Rule 𝑢⋅𝑣 𝑢′ ⋅ 𝑣 + 𝑢 ⋅ 𝑣′

𝑢 𝑢′ ⋅ 𝑣 − 𝑢 ⋅ 𝑣′
Quotient Rule 𝑣 𝑣2

Note:
1- 𝑘 = constant, 𝑢 = 𝑓 (𝑥) and 𝑣 = 𝑔(𝑥)
2- If 𝑦 = 𝑘 ⟹ 𝑦 ′ = 0
3- If 𝑦 = 𝑢 + 𝑣 ⟹ 𝑦 ′ = 𝑢′ + 𝑣′
1 1
1 1
4- If 𝑦 = √𝑥 = 𝑥 2 ⟹ 𝑦 ′ = 2 𝑥 −2 = 2√𝑥
1 −1
5- If 𝑦 = 𝑥 = 𝑥 −1 ⟹ 𝑦 ′ = −𝑥 −2 = 𝑥2
Section 6.2: Applications of Differentiation

Marginal Function: is the derivative of the total function.

- Marginal Revenue:
𝑴𝑹 = (𝑻𝑹)′ when TR is non-linear, and
𝚫𝑻𝑹
𝑴𝑹 = 𝚫𝑸 when TR is linear

- Marginal Cost:
𝑴𝑪 = (𝑻𝑪)′ when TC is non-linear, and
𝚫𝑻𝑪
𝑴𝑪 = when TC is linear
𝚫𝑸

- To find the exact change in TR or TC when Q increases from Q1 to Q2:

Δ𝑇𝑅 = 𝑇𝑅2 − 𝑇𝑅1 𝐨𝐫 Δ𝑇𝐶 = 𝑇𝐶2 − 𝑇𝐶1

Average Function: is the total function divided by its independent variable (e.g. Q)

𝑻𝑹
Average Revenue: 𝑨𝑹 = 𝑸
𝑻𝑪
Average Cost: 𝑨𝑪 = 𝑸
𝝅
Average Profit: 𝑨𝝅 = 𝑸

Section 6.3 and 6.4: Optimization for Functions of One Variable and Economic
Applications

To minimize/maximize any function we should apply the first order and then the second order
conditions as follows:
1st order condition: 𝒚′ = 𝟎
2nd order condition:
If 𝒚′′ > 0 ⟹ the function is minimized
If 𝒚′′ < 0 ⟹ the function is maximized
Problems

Problem 1 (derivatives: first order)

Find the derivative of the following:
a) 𝑦 = 24𝑥 3 + 5𝑥 2 − 𝑥 + 5
3
b) 𝑦 = 9𝑥 2 + 3 + 12
√𝑥
c) 𝑦 = √𝑥 3
100
d) 𝐴𝐶 = 3𝑄2 − 12 + 𝑄
e) 𝑦 = (4 − 5𝑥)3
f) 𝑃 = √12 + 𝑄2
g) 𝑦 = ln(6𝑥 + 18)
h) 𝑦 = 𝑥 ∙ ln(𝑥)
i) 𝑦 = 𝑒 2𝑥 . ln(3𝑥 + 5)
50−𝑄
j) P = 50+𝑄
2𝑄−1
k) 𝑃 = 𝑄

Problem 2 (Derivatives: first, second, and third order)

For each of the following functions find the derivatives indicated between brackets:
𝑑𝑦 𝑑2 𝑦 𝑑3 𝑦
a) 𝑦 = 4𝑥 2 – 𝑥 (Find: 𝑑𝑥 , 𝑑𝑥 2 & 𝑑𝑥 3 )

𝑑𝑦 𝑑2 𝑦 𝑑3 𝑦
b) 𝑦 = 2𝑥 3 – 12𝑥 2 + 24𝑥 (Find: , 2 & )
𝑑𝑥 𝑑𝑥 𝑑𝑥 3
𝑑𝑦
c) 𝑦 = √𝑥 ∙ (𝑥 4 – 4𝑥 3 + 2𝑥 2 – 16𝑥 + 5) (Find: 𝑑𝑥 )

𝑑𝑦
d) 𝑦 = ln(𝑥 2 − 1) ∙ (2𝑥 − 1) (Find: 𝑑𝑥 )

3−1 𝑑𝑦
e) 𝑦 = 𝑒 𝑥 (Find: 𝑑𝑥 )

Problem 3 (AR, TR, MR, exact change)

Given the Average Revenue function 𝐴𝑅 = −3𝑄 + 12.

a) Find the Total Revenue function TR and get its value at Q1 = 1 and Q2 = 2.
b) What is the exact change in TR from Q1 = 1 to Q2 = 2?
c) Find the Marginal Revenue function MR and get its value at Q1 = 1.
Problem 4 (TC, MC, exact change)
A firm that produces clothing has the following Average Cost function:
7
𝐴𝐶 = 15𝑄 − 50 +
𝑄

a) Find the Total Cost (TC) function.

b) Find the Marginal Cost (MC) function.
c) Calculate the exact change in TC if Q increases from 4 to 5.

Problem 5 (TR, MR, AR, exact change)

If the demand function is 𝑃 = 100 − 𝑄,

a) Find the Total Revenue, TR.

b) Find the Marginal Revenue, MR.

c) Find the Average Revenue, AR.

d) Calculate the exact change in TR as the output Q increases from 60 to 65 units.

Problem 6 (MC, AC)

A firm producing jackets has the following total cost function: 𝑇𝐶 = 4𝑄2 − 20𝑄 + 1
a) Derive the Marginal Cost function.
b) Calculate MC at Q = 10 and at Q = 20.
c) What is the Average Cost function?

Problem 7 (AC, TC, MC)

Given the following average cost function:
2
𝐴𝐶 = 5𝑄2 + 3𝑄 + 10 +
𝑄
a) Find an expression of total cost.
b) Find an expression of marginal cost.
c) State the value of fixed cost and variable cost.
Problem 8 (Profit maximization)

Given the Total Revenue and the Total Cost functions for a certain product:
𝑇𝑅 = 40𝑄 − 0.2𝑄2
𝑇𝐶 = 5𝑄 + 100

a) Find the profit equation.

b) Determine the value of output that maximizes Total Revenue.
c) Calculate the amount of output that maximizes profit of the firm and the value of
maximum profit.

Problem 9 (MR, MC, M, maximum profit, break-even)

Given the total revenue and the total cost functions for a certain good:
𝑇𝑅 = 25𝑄 − 0.01𝑄2
𝑇𝐶 = 2𝑄 + 9000

a) Find the marginal revenue.

b) Find the marginal cost.
c) Find the total profit function.
d) Find the marginal profit function.
e) Determine the value of output that maximizes profit of the firm and the value of total
profit.
f) Calculate the amount of output at the break-even point.

Problem 10 (Profit maximization, proof max or min)

The demand and Total Cost functions for Taanayel produce and dairy product are the following:
Demand: 𝑃 = 100 − 1.5𝑄
Total cost: 𝑇𝐶 = 2𝑄2 + 37𝑄
a) Find the Total Revenue (TR) function.
b) Find the profit function (𝜋).
c) Using derivatives, find the quantity that maximizes the profit?
d) Calculate the maximum profit.
e) Prove that the profit function is maximized and not minimized.
Problem 11 (TR, MR, Maximum TR)
6
Below is the demand function 𝑃 = −2𝑄 + 18 + 𝑄

a) Find the total revenue function, TR.

b) Determine the Marginal revenue function, MR.
c) Find the quantity that maximizes the total revenue function.
d) Calculate the maximum total revenue.

Problem 12 (Maximum/Minimum point)

a) Find the turning points (x, y) of the function 𝑦 = 𝑓 (𝑥) = 𝑥 3 − 3𝑥 + 15 and specify what
each one is, a minimum or a maximum while justifying your answer.

b) Given the Total Cost function 𝑇𝐶 = 5𝑄3 − 60𝑄 + 125.

a. What is the value of the output Q that will minimize TC? Justify your answer.
b. Deduce the value of the minimum cost.

c) Consider the following function: y  2 x 3  6 x 2

a. Determine the turning points.
b. Determine whether each turning point is a maximum or a minimum. Explain.

Problem 13 (Profit maximization, graph)

Below are the demand and the total cost functions for good G
Demand: 𝑃 = 9 − 𝑄
𝑇𝐶 = 3 + 𝑄
a) Derive the equation of TR and then plot the TR curve over the interval Q = 1 to Q = 8.
b) Derive the equation of profit π.
c) Determine the maximum profit and the value of Q that maximizes this profit.
d) Prove that the profit function is maximized.

Problem 14 (MR, MC, maximum profit)

The total revenue and total cost functions for a certain product are given respectively as:
𝑇𝑅 = −4𝑄2 + 28𝑄 & 𝑇𝐶 = 2𝑄2 − 92𝑄 + 216
a) Find the marginal revenue and marginal cost.
b) Find the total profit function.
c) Determine the turning point of the profit function.
d) Show that the turning point of the profit function is a maximum.
Problem 15 (Max TR, Max profit)

The total revenue function and total cost function for a firm that produces glass are as follows:

𝑇𝑅 = 20𝑄 – 4𝑄2 & 𝑇𝐶 = 8 + 2𝑄

a) Find the quantity Q that maximizes the TR.

b) Show that the turning point of the TR function is a maximum?
c) Determine the profit function π.
d) Find the breakeven points and determine the value of output Q that maximizes the profit
of a firm.
e) What level of output Q should the company produce? Compare the level of output Q that
maximizes TR with the level of output Q that maximizes the profit.
 BMTH210 – Business and Managerial Mathematics
Linear Algebra and Applications
Notes:

Section 9.2: Matrices:

Matrices are rectangular arrays of numbers or symbols; the primary use of matrices is to
solve systems of equations.

A matrix looks like the following

𝑎11 𝑎12 (1) rep. 1st row and (2) rep. 2nd column
(𝑎 𝑎22 ) nd nd
(2) rep. 2 row and (2) rep. 2 column
21

Matrix Dimensions:
The dimensions of a matrix are stated as the number of rows by the number of columns (𝑟 × 𝑐)
Example:
0 2
1 2
A=( ) B =(1 0) D =(−2 1 4)
−2 4
2 5
A is 2 x 2 B is 3 x 2 D is 1 x 3

Special Matrices:
The null matrix
is a matrix of any dimension in which every element is zero such as:
0 0 (
( ), 0 0 0)
0 0

The unit matrix or the identity matrix (I)

is any square (A matrix in which the number of rows equals the number of columns [r = c] is
called a square matrix) matrix in which every element is zero, except the elements on the main
diagonal, each of which has the value 1 such as:
1 0 0
1 0
I = 2×2 𝑢𝑛𝑖𝑡 𝑚𝑎𝑡𝑟𝑖𝑥 ∶ ( ), I =3×3 𝑢𝑛𝑖𝑡 𝑚𝑎𝑡𝑟𝑖𝑥 ∶ (0 1 0)
0 1
0 0 1

Equal Matrices
Matrices are equal if they have the same element positions and the same dimensions.
Example:
1 2 1 2
A =( ), D = ( ), both A and D are identical
0 13 0 13
 2 2
2
2 2
A=( ), D = (2 2), both A and D have the same elements but different dimensions
2
2 2
2 2
 they are not identical

Transpose of the matrix ( )T

The transpose matrix is obtained by writing the rows of any matrix as columns or vice versa, as
follows:
𝑎 𝑏 𝑇 𝑎 𝑐
A=( ) =( ),
𝑐 𝑑 𝑏 𝑑

Example:
0 2 𝑇 −2
T1 2 𝑇 1 −2 T 0 1 2
A =( ) =( ), B =(1 0) =( ), DT =(−2 1 4 ) 𝑇
= ( 1)
−2 4 2 4 2 0 5
2 5 4

Operations:
Matrix addition and subtraction

To add/subtract matrices, they should have the same dimensions.

𝑎 𝑏 𝑒 𝑓 𝑎±𝑒 𝑏±𝑓
( )+( )=( )
𝑐 𝑑 𝑔 ℎ 𝑐±𝑔 𝑑±ℎ

Example:
Add the following:
1 −2 5 0 6 −2
(0 10 ) + (2 1 ) = (2 11 )
7 3 2 −3 9 0

Subtract the following:

1 −2 5 0 −4 −2
(0 10 ) − (2 1 ) = (−2 9)
7 3 2 −3 5 6

Scalar Multiplication
A scalar is an ordinary number: 2, 5, -3, etc. when a matrix is multiplied by a scalar, each
element in the matrix is multiplied by the scalar:
𝑎 𝑏 𝑘𝑎 𝑘𝑏
𝐴=( )  𝑘𝐴 = ( )
𝑐 𝑑 𝑘𝑐 𝑘𝑑
Example:

1 −2 1 −2 5 −10
𝐴=( ) 5𝐴 = 5 ( )=( )
2 4 2 4 10 20
Matrix Multiplication
In order to multiply two matrices:
1- Check the dimensions for both matrices. If the number of columns in the first matrix
equals the number of rows in the second matrix then we can multiply.
2- Find the dimensions for the new matrix. It is the number of rows for the first matrix and
the number of columns for the second matrix.
3- Multiply:
𝑎 𝑏 𝑒 𝑓 𝑎𝑒 + 𝑏𝑔 𝑎𝑓 + 𝑏ℎ
( )×( )=( )
𝑐 𝑑 𝑔 ℎ 𝑐𝑒 + 𝑑𝑔 𝑐𝑓 + 𝑑ℎ

Example:
Given:
1 2
2 0 1 2
𝐴= ( ), 𝐶 = ( ) and 𝐷 = (−2 4)
3 3 −2 4 2 2

Multiple AC, CA, AD & DA

For AC
(2x2) & (2x2) they are the same we can multiply
(2x2) & (2x2) is the dimension of the new matrix (2x2)

2 0 1 2 2+0 4+0 2 4
𝐴𝐶 = ( )×( )=( )=( )
3 3 −2 4 3−6 6 + 12 −3 18

For CA
(2x2) & (2x2) they are the same we can multiply
(2x2) & (2x2) is the dimension of the new matrix (2x2)

1 2 2 0 8 6
𝐶𝐴 = ( )×( )=( )
−2 4 3 3 8 12

Note: AC ≠ CA

For AD
(2x2) & (3x2) they are different  we can’t multiply (we stop)

For DA
(3x2) & (2x2) they are the same we can multiply
(3x2) & (2x2) is the dimension of the new matrix (3x2)

1 2 8 6
2 0
DA=(−2 4)x( )=(8 12)
3 3
2 2 10 6
Problems
Problem 1: (Matrices)

Given the following matrices

2 1
2 4 7 −4 2 1 0 2 2 5 2𝑥
A =( ), B =( ), C =( ), D =( ), E =(3 2), F =( ),
1 0 10 0 4 0 1 0 5 3𝑦 0
5 1
1 4 2 0 1 2
G=( 2 3 5), H=(5 1 2) and I is the 2 x 2 unit matrix.
7 1 2 3 4 0

Perform the following operations

a) A + B
b) A + D
c) B – C
d) DT& CT
e) A + CT
f) 10D
g) AC & CA then what can we conclude?
h) AD & DA
i) DE & ED
j) A+I
k) EI
l) If A + F = B, find x & y
m) 4I
n) GH

Problem 2: (Matrices)

Evaluate the following:

2 −3
a) 5 ( )
7 5
2 −3 −4 11
b) ( )−( )
7 5 −6 5
1 −4 −2 1
c) ( )+( )
3 6 7 8
9 5 −6 6
d) ( )−( )
4 −1 2 4
2 −8 −7 9
e) ( )+( )
4 6 3 −5