Mathematics

Grade 12
SELF STUDY GUIDE
Functions and Finance

1
TABLE OF CONTENTS PAGE

1. Introduction 3

2. How to use this self-study guide 4

3. Functions 5

3.1 Notes/Summaries/Key concepts 5

4. Financial Mathematics 67

2
 1. Introduction
The declaration of COVID-19 as a global pandemic by the World Health Organisation led to the
disruption of effective teaching and learning in many schools in South Africa. The majority of
learners in various grades spent less time in class due to the phased-in approach and rotational/
alternate attendance system that was implemented by various provinces. Consequently, the
majority of schools were not able to complete all the relevant content designed for specific grades
in accordance with the Curriculum and Assessment Policy Statements in most subjects.

As part of mitigating against the impact of COVID-19 on the current Grade 12, the Department of
Basic Education (DBE) worked in collaboration with subject specialists from various Provincial
Education Departments (PEDs) developed this Self-Study Guide. The Study Guide covers those
topics, skills and concepts that are located in Grade 12, that are critical to lay the foundation for
Grade 12. The main aim is to close the pre-existing content gaps in order to strengthen the mastery
of subject knowledge in Grade 12. More importantly, the Study Guide will engender the attitudes
in the learners to learning independently while mastering the core cross-cutting concepts.

3
2. How to use this Self Study Guide?
• This Self Study Guide summaries only two topics, Functions and Finance. Hence
the prescribed textbooks must be used to find more exercises.
• It highlights key concepts which must be known by all learners.
• Deeper insight into the relevance of each of the formulae and under which
circumstances it can be used is very essential.
• Learners should know the variables in each formula and its role in the formula.
Learners should distinguish variable in different formulae.
• More practice in each topic is very essential for you to understand mathematical
concepts.
• The learners must read the question very carefully and make sure that they
understand what is asked and then answer the question.
• After answering all questions in this Self Study Guide, try to answer the previous
question paper to gauge your understanding of the concepts your required to
know.

4
3. Functions
3.1 Notes/Summaries/Key Concepts
What learners must know:
• Revise the functions discussed in Grade 10:
Straight line: y = ax + q

Parabola: y = ax 2 + q
a
Hyperbola: y = +q
x
Exponential graphs: y = a.b x + q
• Effects of a, p and q on the graphs of the functions:

Parabola: y = a( x + p) 2 + p
a
Hyperbola: y = +q
x+ p

Exponential graphs: y = a.b x + p + q where b > 0, b ¹ 1

• to differentiate between different shapes of graphs based on the equation.
• to draw graphs
• to analyze and interpret graphs, make deductions from the given graphs.
• how to recognize the domain and the range
• identify the asymptote (s).
• how to find the point (s) of intersection
• that hyperbola must have arms at all times, and show at least one point on the other arm
• to investigate the average gradient between two points on a curve

5
 TYPES OF FUNCTION
Function Equation Shape
1. Linear Function f ( x) = mx + c or

f ( x) = ax + q

2. Quadratics Function i) f ( x) = ax 2
ii) f ( x) = ax 2 + q
iii) f ( x) = ax 2 + bx + c
iv) f ( x) = a ( x + p ) 2 + q
v) f ( x) = a( x - x1 )( x - x2 )
3. Hyperbolic Function a
• y= +q
x

a
• y= +q
x+ p

4. Exponential i) f ( x) = ab x + q
Function

ii) f ( x) = ab x+ p + q

6
 Linear Function

a) Standard form is given by f ( x) = mx + c or f ( x) = ax + q

a and m represent the gradient or

slope c and q are the y-intercept

b) Shape of the graph

(horizontal line) y (perpendicular line)

y parallel to x-axis parallel to y-axis

x x

c) Domain: x Î !
Range: y Î !

7
Effect of a and q on the graph

Function a on the graph Notes

y
If a > 0 , the line slopes
f ( x) = 2 x up from left to right.

As the positive value of a

increases, the straght
line gets closer to the y-
x axis.

y
f ( x ) = -2 x If a < 0 , the line slopes
down from left to right.

As the negative value of

a decreases, the straight
x line gets closed to the y-
axis.

Function q on the graph Notes

y q > 0 graph move or
f ( x) = x + 3 shift q units up and the y-
intercept is on the
positive side.

y q < 0 , graph move or

shift q units downwards
and y-intercept is
negative side
f ( x) = x - 2

8
Sketching the graph

• The following steps must be taken into account when sketching

Let y = 0
Let x = 0
Steps:

- Find x- and y- intercepts or

- Use table method
- Determine the shape

Worked-out example

Given: f ( x) = 2 x - 4
a) Calculate x - and y - intercept of f. (4)
b) Sketch the graph of f. (2)
c) Determine the range of f.
(1)
d) Determine the gradient of h( x ) , if h( x) = - f ( x) (2)
e) Calculate the coordinates of point of intersection of f ( x) and g ( x)
(2)

Possible solution

a) y -intercept: let x = 0
y = 2(0) - 4 ü subst. x = 0
= -4 (0 ; -4) ü answer

x -intercept: let y = 0
ü subst. y = 0
0 = 2x - 4
4 = 2x ü answer
\ x = 2 (2 ; 0) (4)

9
 b) y 7
6
5
4 f
3 ü both x- & y-inter
2 ü correct shape
1 x (2)
-4 -3 -2 -1 0 -1 1 2 3 4 5
-2
-3
-4
-5
-6
-7
-8
-9

c) yÎ! ü answer
values of y form part of the graph. (1)
d) h( x) = -(2 x - 4)
Subst. equation of f. ü equation
= -2 x + 4 ü m = -2
(2)
\ Gradient is -2 or m = -2

2 x - 4 = -2 x + 4 ü equating h & f
2x + 2x = 4 + 4
4x = 8
4x 8 ü answer
=
4 2 (2)
\x = 2

Finding the equation of straight line (linear function)

• Need gradient and one point on the line
• NB: m can be found in different way
y2 - y1
o Given two coordinates, use m =
x2 - x1
o m1 = m2
Parallel functions,
o Perpendicular functions, m1 ´ m2 = -1

10
Worked-out example

1. In the diagram below, determine the equation g, f and h in the form g ( x) = ax + q .

y
i)
(2;1)
(3)
g x

-5

(-3;2)
ii) (3)

x
h

(1;-6)
g
2. In the diagram, line x - 2 y = 3 cuts the axis at Q and S. Line x + y = -1 cuts the axes at P

and R. The two lines intersect at T.

y

P O Q x

R
T
S
Determine:

a) the coordinates of Q and S. (4)

b) the coordinates of P. (1)
c) coordinates of R. (1)
d) the value(s) of x for which the lines are increasing. (1)
[13]

11
Possible solutions

1. y2 - y1
m=
x2 - x1 Subst. point Q & S into gradient formula
i)
1 - ( -5) ü correct subst.
=
2-0
6 ü answer
= =3
2
\ y = ax + q ü equation
(3)
1 = 3(2) + c or y = 3x - 5
y = 3x - 5
ii) y - y1
m= 2 Subst. point P & R into gradient formula
x2 - x1 ü correct subst.
2-6
= ü answer
-3 - 1
= -2
y = -2 x + q
2 = -2(-3) + q ü equation
(3)
q = -4
y = -2 x - 4
2. a) 1 ü equating y to 0
0 = x-3
2 Q is on the x-axis, x-intercept, let y = 0
1
3= x ü answer
2
x=6
Coordinates of S (6;0)
1 ü equating x to 0
: y = (0) - 3 S is on the x-axis, y-intercept, let y = 0
2
ü answer
= -3
(4)
Coordinates of S(0;-3)

b) Coordinates of P(-1;0) ü P(-1;0)

(4)
c) Coordinates of R(0;-1) ü R(0;-1)
(2)
d) Increase when x Î ! ü answer
(1)

12
Quadratic function

Standard form is given by: y = ax 2 + q

y = ax 2 + bx + c
y = a( x + p) 2 + q
SHAPE
Happy face parabola Sad face parabola
(Concave up) (Concave down)
a>0 a<0

Min TP Max
The graph has a minimum turning point The graph hasTP
a maximum turning point

INTERCEPTS WITH AXIS

Interprets Example graph Nature of root
x-intercepts f ( x) = x 2 - 6 x - 16 y D > 0 and
-2 x 8 Two real,
Example
Let y=0 0 = x 2 - 6 x - 16 unequal and
0 = ( x + 2)( x - 8) rational roots
x = -2 or x = 8

f ( x) = x 2 + 2 x + 3 y D<0
Non real roots
Example
0 = x2 + 2 x + 3
-b ± b2 - 4ac
x=
2a
x
-2 ± (2) - 4(1)(3)
2
=
2(1)
No real roots
-2 ± -10
=
2

13
 f ( x) = x 2 - 2 x + 1 y D > 0 , and
Two real,
Example
equal, and
0 = x2 - 2 x + 1
rational roots
0 = ( x - 1)( x - 1)
\x =1 x

y-intercept g ( x) = 3 x 2 - 4 x + 1 y If the value of c

is positive,
Example
graph will cut
Let x = 0
y = 3(0)2 - 4(0) + 6 the y-axis on
=6 x the positive
side
y - intercept

If the value of c
g ( x) = x 2 - 2 x - 3 y
is negative,
Example
graph will cut
y = (0) - 2(0) - 3
2
the y-axis on
y = -3 the negative
x
side
y - intercept

AXIS OF SYMMETRY
Axis of symmetry divides the graph into two qual halves
Equation Use Example
f ( x) = ax + bx + c
2 b f ( x) = x - 4 x - 5
2
x=-
2a (-4) 4
x=- = - = -2
2(1) 2
f ( x) = a ( x + p ) 2 + q x+ p =0 g ( x) = 2( x + 5)2 - 9
x = -p x+5 = 0
x = -5

14
When given f ( x) = ( x - x1 )( x - x2 ) x1 + x2 f ( x) = ( x - 1)( x + 5)
x=
or roots or x-intercepts of quadratic 2 1 + (-5) 1 - 5
x= = = = -2
function f. 2 2
or
y

DOMAIN AND RANGE OF QUADRATIC FUNCTION

Domain xÎ!
This can also be written as xÎ(-¥ ; ¥)
yÎ! , y ³ q; if a > 0
This can also be written as y Î[q ; ¥) .
Range ={ y / y ³ minimum value}
Example

(1;-4)
Range

Minimum Turning Point

[
Range: y ³ - 4 or y Î -4; ¥ or )
yÎ! , y £ q; if a < 0
This can also be written as y Î(-¥ ; q]

Range ={ y / y £ maximum value}

15
 y (1;4)

Maximum Turning Point

Range: yÎ! , y £ 4 or y Î ( -¥;4 ]

TURNING POINT

Standard equation x-coordinate of turning point y-coordinate of the turning

(Axis of symmetry) point (Maximum or
minimum value)

y = ax 2 + bx + c b Substitute the x-value into

x=-
2a the original equation to
determine the y-value
x=- p y=q
y = a( x + p)2 + q
y = a( x - x1 )( x - x2 ) x1 + x2 Substitute the x-value into
x=
2 the original equation to
determine the y-value

f ( x) = ax 2 + bx + c x = f ' x) , where Substitute the x-value into

the original equation to
f ' x) = 0
determine the y-value

Sketching a graph
• Determine the shape of a, where a > 0 or a < 0 .
• Find x-intercepts by letting y = 0

• Find y-intercept by letting x = 0

• Find turning point:
• Plot points and sketch graph

16
Worked-out example 1

Given: f ( x) = 2 x 2 - 2 .
1.1 Determine the coordinates of the y- intercept of the graph of f. (2)

1.2 Determine the coordinates of the x-intercepts of f. (3)

1.3 Determine the coordinates of the turning point of f. (2)
1.4 Sketch the graphs of f, clearly showing ALL intercepts with the axes and turning (3)
points.
1.5 Write down the range of f. (1)

1.6 Determine a if ( 2; a ) is a point on the graph of f ( x) . (2)

[13]
Possible solutions

1.1 y – intercept, let x = 0

y = 2(0)2 - 2 ü x=0
ü answer
y = 2 ( 0;2) (2)
1.2 x – intercepts, let y = 0
0 = 2 x2 - 2 ü y=0
0 = x2 -1 ü factors
0 = ( x - 1)( x + 1)
ü both x values
\ x = 1 or x = -1
(3)
(1;0) ( -1;0)
1.3 Turning Point: since a > 0 üü ( -2; 0)
( -2; 0) (2)
1.4
y
6
5
4 f ü intercepts
3
2 ü turning point
1 ü shape
-2 -1 0 -1 1 2 x
-2 (4)
-3

1.5 [
Range: y Î -2; ¥ ) ü critical values
ü notation
(2)

17
Worked-out example 2

Given: f ( x) = x 2 - 4 x - 12

2.1 Write down the coordinate of y-intercept of f. (1)

2.2 Determine x-intercepts of f. (3)

2.3 Determine the coordinates of turning point of f. (3)

2.4 Sketch the graph of f, clearly show all intercepts with axis. (3)

2.5 Determine the range of f. (2)

Possible solutions

2.1 ( 0; -12) ü ( 0; -12)

(1)
2.2 ü equating y to 0
0 = x - 4 x - 12
2
ü factors
Find factors
0 = ( x - 6)( x + 2)
ü both answer
x - 6 = 0 or x + 2 = 0 (3)
\x = 6 or x = -2
2.3 b
x=-
2a ü Subst. a & b

-6 ü value of x
x=-
2(1) ü value of y
= -3 (3)

y = (-3) - 4(-3) - 12
2

=9
Tp (-3;9)
2.4
y 8
6
ü x- & y-intercepts
4 f
2
x ü turning point
-4 -2 0 2 4 6 8
-2
-4 ü shape
(3)
-6
-8
-10
-12
-14
-16

2.5 y Î [ -16; ¥ ) ü answer

ü notation
(2)
[12]

18
Worked-out example 3

Consider graph of g ( x) = ( x + 4)2 - 1

3.1 Write down the coordinates of turning point of g. (2)

3.2 Determine x-intercepts of g. (3)

3.3 Write down the range of g. (2)

3.4 Sketch the graph of g. (3)

[10]

Possible solution

3.1 TP: ( -4; -1) ü -4

ü -1
(2)
0 = ( x + 4) -1
3.2 2
ü equating y to 0
1 = ( x + 4) 2
ü factors
±1 = x + 4
ü answers
\ x = 1- 4 or x = -1 - 4 (3)
= -3 = -5
3.3 y Î [ -1; ¥ ) ü critical values
ü notation (2)
3.4 y
24
22
20 ü x- & y-intercepts
18
16
14 ü turning point
12
10
8 ü shape
6 (3)
4
2 x
-8 -6 -4 -2 0 1 2
-2
-4

DETERMINING THE EQUATION OF A PARABOLIC FUNCTION

19
Given x-intercepts (roots) Given Turning point (- p ; q) Given three points (NOT x-
and a point on the graph and a point on the graph intercepts or a turning point)

y = a( x - x 1 )( x - x2 ) y = a( x + p)2 + q y = ax 2 + bx + c
• Substitute x-intercepts, x1 • Substitute the coordinates Determine the equation of the
of turning point (- p ; q) parabola if you are given three
and x2 into correct points: (1; - 2) , (2; - 3) and
into correct formula.
formula.
• Replace a with the (0;3) .
• Replace a with the
coefficient of x 2 if given, • Identify the point
2
coefficient of x if given, representing the y-intercepts.
but if not given substitute
but if not given substitute • Subst. the y-intercept into
the given point ( x ; y ) to the equation y = ax 2 + bx + c
the given point ( x ; y ) to
find a to get the c-value.
find a
• Multiply out the brackets to • Now subst. the other two
• Multiply out the brackets points into the equation and
get the equation in standard
to get the equation in solve simultaneously to

standard form form y = ax 2 + bx + c determine the values of a

and b.
y = ax 2 + bx + c

NOTATION
y y
f ( x) > 0 above the x-
axis (line
y = 0)
x
x

x < -2 or x > 2 -2 < x < 2

f ( x) < 0 below the x- y y
axis (line
y = 0)
x
x

-2 < x < 2 x < -2 or x > 2

20
f ( x).g ( x) ³ 0 Both graph y
above x-axis y
or both graph
below x-axis
x x

x£2 or x ³1
x £ -2 or -1 £ x £ 2
f ( x).g ( x) £ 0 One graph y y
above x-axis
(line y = 0 )
and other one x
below x-axis x
(line y = 0 )

-2 £ x £ -1 or x³2 -2 £ x £ 1
f ( x) ³ g ( x) f must be y y
above g

x
x

x £ -2.30 or x ³ 1.30 -2.8 £ x £ 1.8

f ( x) = g ( x) Where the y
two graph x = -2.8 and x = 1.8
intersect
x

21
Worked-out example 4

The graph of f ( x) = ax 2 + q is sketched below.

Points A(2 ; 0) and B(-3 ; 2,5) lie on the graph of f.
Points A and C are x-intercepts of f.

4.1 Write down the coordinates of C. (1)

4.2 Determine the equation of f. (4)

4.3 Write the down the range of f. (1)

4.4 Write down the range of h, where h( x) = - f ( x) - 2 (2)

Possible solution

4.1 C(-2 ; 0) ü C(-2 ; 0)

(1)
4.2 y = a( x - x1 )( x - x2 )
ü subst. of x = -2 & x =2
y = a ( x - (-2) )( x - 2)
y = a( x + 2)( x - 2)
ü subst. of B(-3;2,5)
Subst. B(-3 ; 2,5)
2,5 = a(-3 + 2)(-3 - 2)
2,5 = a(-1)(-5) ü value of a
2,5 = 5a
1
\ =a
2
1
y = ( x + 2)( x - 2) ü equation
2 (4)
1 2 1
y = ( x - 4) \ y = x 2 - 2
2 2

4.3 y-intercept is -2 ü critical value

22
 \ y Î [ -2; ¥ ) ü notation
(2)
4.4 1
h( x) = -( x 2 - 2) - 2
2
1 2
= - x +2-2
2
1
= - x2 ü equation
2
\ y Î ( -¥;0]
ü y Î ( -¥;0 ]
(2)

Worked-out example 5

The diagram shows the graphs of g ( x) = ax 2 + q and f ( x) = mx + c .

R is the x-intercept of g and T(0 ; 8) is the y-intercept of g. P(3 ; 14) is the point of g
Graph f passes through R and T.

y
T(0 ; 8)

R 0 x

P(3 ; 14)

5.1 Write down the range of g. (2)

5.2 Determine the values of a and q. (2)

5.3 If coordinates of R are (-2 ; 0), use the graph to determine value(s) of x for which:

5.3.1 f ( x) < g ( x) (2)

[06]

23
Possible solutions

5.1 y Î ( -¥;8] ü interval

ü notation
(2)
5.2 y = ax + 8
2
ü subst. of P
14 = a(3)2 + 8
6 = 9a ü value of a
\2 = a (3)
5.3 -2 < x < 0 ü interval
( -2; 0) ü notation
(2)

Worked-out example 6

Determine the equation of graph below in the form y = ax +b+c

2

6.1

-2 1 x

-4

24
6.2
y

1
0 x

(-2;-3)

Possible solution

6.1 y = a( x - x1 )( x - x2 )
ü subst. of x = -2 & x =1
y = a( x - (-2))( x - 1)
y = a( x + 2)( x - 1)
Subst. (0;-4) ü subst. of B(-3;2,5)
-4 = a(0 + 2)(0 - 1)
-4 = a(2)(-1)
ü value of a
-4 = -3a
4
=a
3
4
y = ( x + 2 )( x - 1)
3 ü equation
4 2
y = ( x + x - 2)
(4)
3
4 4
y = x2 + x - 2
3 3
6.2 y = a( x + 2)2 - 3 ü subst. of TP
Subst. (0;1) ü subst. of (0;1)
1 = a(0 + 2)2 - 3
4 = a(2)2 ü value of a
4 = 4a
\a = 1
y = ( x + 2)2 - 3 ü equation
(4)
y = x2 + 4x + 4 - 3
y = x2 + 4x + 1

25
 Hyperbolic Function

a
1. The general equation is given by: y = +q
x
a q is the vertical shift
: y= +q
x+ p
p is the horizontal shift

SHAPE
Happy face parabola Sad face parabola
(Concave up) (Concave down)
The hyperbola will lie in the 1st and 3rd The hyperbola will lie in the 2nd and 4th
quadrants. quadrants
a>0 a<0

If a > 0 , then the graph decreases for all x If a < 0 , then the graph increases for all x
values. Where x Î ! ; x ¹ - p values. Where x Î ! ; x ¹ - p

EFFECTS OF p AND q
p < 0 (negative) y
p affects the horizontal shift The graph moves p units to
(moves graph to the right) of the left
the graph and gives the
position of the vertical x
asymptote ( x = - p) .

p > 0 (positive) y
The graph moves p units to
p affects the horizontal shift
the right
(moves graph to the left) of
the graph and gives the
position of the vertical x
asymptote ( x = - p) .

26
q > 0 (positive) y
q affects the vertical shift of
The graph moves q units
the graph. Also gives the
upwards.
horizontal asymptote y = q

q < 0 (negative) y
q affects the vertical shift of x
the graph. Also gives the The graph moves q units
horizontal asymptote y = q downwards.

INTERCEPTS
Intercepts example
x – intercept; y = 0 3
y= + 3 let y = 0
x-2
3
0= +3
x-2
3
-3 =
x-2
-3( x - 2) = 3
-3 x + 6 = 3
\x =1
y – intercept; x = 0 3
y= +3 Let x = 0
x-2
3
y= +3
0-2
3
y=
2

27
 ASYMPTOTES
Example: y
The graph has Two 2
asymptotes: y= +3
x-2
Vertical

Vertical Asymptote
• Vertical asymptote -
x = -p asymptote:
x-2=0 x
\x = 2
• Horizontal asymptote -
y=q
Horizontal
asymptote:

y=3 Horizontal asymptote

y=3

AXIS OF SYMMETRY
• For increasing or m > 0 , Point of y
use y = x + c or intersection
(2;3)
y = ( x + p) + q
3= 2+c
\c = 1
\ y = x +1
or x
y = ( x - 2) + 3
y = x-2+3
• For decreasing or m < 0 ,
\ y = x +1
use y = - x + c or
y = -( x + p ) + q 3 = -2 + c
\c = 5
NB: Both axis of y = -x + 5
symmetry pass through
point of intersection of or
two asymptotes y = -( x - 2) + 3
y = -x + 2 + 3
\ y = -x + 5

28
 DOMAIN AND RANGE
2
Example: y = +3
x-2
Domain: xÎ! ; x ¹ -p x Î ! ; x ¹ 2 or
x Î ( -¥; ¥ ) ; x ¹ 2
Range: y Î ! ; y ¹ q y Î ! ; y ¹ 3 or
y Î ( -¥; ¥ ) ; y ¹ 3

Sketching of hyperbola

i) Determine the shape.

ii) Write down the equations of asymptotes.
iii) Determine x- and y- intercepts.
iv) Sketch the graph starting with asymptotes.

Worked-out example 1
2
Given f ( x) = -3
x
1.1 Write down the equations of the asymptotes of f. (2)
1.2 Write down the domain and range of f. (2)
1.3 Calculate the x-intercepts of the graph of f. (2)
1.4 Draw a neat sketch of f, clearly showing all intercepts with the axes and
asymptotes. (3)
1.5 Determine the equation of the axis of symmetry that has positive gradient (2)
[10]
Possible solutions

1.1 x=0 ü x=0

y = -3 ü y = -3
(2)
1.2 xÎ!;x ¹ 0 ü xÎ!;x ¹ 0
y Î ! ; y ¹ -3 ü y Î ! ; y ¹ -3
(2)
1.3 2 ü equating y to 0
0 = -3
x
2
3=
x
3x = 2 ü answer
2 (2)
\x =
3

29
 1.4 y
ü x & y- intecepts
f
ü asymptote

ü shape
-1 1 x
(3)
-3

1.5 y = x+q
-3 = 0 + q ü subst. (0;-3)
-3 = q ü equation
\y = x -3 (2)

Worked-out example 2
3
Given h( x) = +2
x -1
2.1 Determine the equations of the asymptotes. (2)

2.2 Calculate x- and y-intercepts of h. (3)

2.3 Sketch the graph of h, clearly show all intercepts with asymptotes. (3)

2.4 Determine range of h. (2)

2.5 Determine the value(s) of x for which h( x) £ 0 (2)

2.6 Show that the equation of axis of symmetry with positive gradient is given by y = - x + 3 .
(2)
[14]

30
Possible solution

2.1 x =1 ü x =1
y=2 ü y =1
(2)
2.2 2
y= +2 ü y=0
0 -1
=0
x-intercept; let y = 0
2 ü y=0
0= +2
x -1
2
-2 =
x -1
-2( x - 1) = 2
1
-2 x + 1 = 2 ü x=-
1 2
x=- (3)
2
2.3 y ü point (0;0)

ü asymptotes

x ü shape

(3)
x

x2.4 yÎ!; y ¹ 2 üü answer

(2)
2.5 0 £ x < 1 or ü critical values
x Î [0;1) ü notation

2.6 y = -x + c ü negative gradient

2 = -1 + c
3=c ü subst. (1;2)
\ y = -x + 3
(2)

31
DETERMINING EQUATIONS OF A HYPERBOLIC FUNCTIONS

NB: Given the asymptote and a point on the graph.

• Determine the equations of the asymptotes,
• Determine the values of p and q, then substitute into the equation.
• Substitute coordinates of a point on the graph into the equation to determine the value a.
a
• Write down the final equation in the form y = +q
x+ p

Worked-out example 1

a
The diagram below represents the graph of h( x) = +q.
x
P(4 ; 3) is a point on f and equation of asymptote is y = 2

P(4 ; 3)

1.1 Determine the equation of h. (3)

1.2 Calculate the coordinates of x-intercept of h. (2)
1.3 Determine from the graph the value(s) of x for which:
1.3.1 h( x ) £ 0 (2)
1.3.2 h is increasing (1)
1.4 Calculate the range of p, if p( x) = -h( x) + 1. (2)

[11]

32
Possible solutions

2.1 a ü q=2
y= +2
x ü subs. (4 ; 3)
a
3= +2
4
a
1= ü value of a
4 (3)
a=4

2.2 4
y= +2
x
4 ü y=0
0= +2
x
4
-2 =
x ü answer
-2 x = 4 (2)
\ x = -2
2.3.1 -2 £ x < 0 ü interval
or ü notation
x Î [ -2;0) (2)

2.3.2 xÎ!;x ¹ 0 ü answer

(1)
2.4 æ4 ö
p ( x) = - ç + 2 ÷ + 1
èx ø
4
p ( x) = - - 2 + 1 ü equation
x
4 ü answer
p ( x) = - - 1
x
(2)
\ y Î ! ; y ¹ -1

33
Worked-out example 2
Determine the equation of the graph drawn below. (4)

[4]

Possible solutions

2.1 The vertical asymptote is x=-3

The horizontal asymptote is the line y=-3
a ü Subst. of asymptotes
\y= -1
x - ( -3)
a
y= -1
x+3
Subst, the point (1;0) to find the value of a. ü Subst. point (1;0)
a
0= -1
1+ 3
ü a=4
a
1=
4
a=4 æ 4 ö
4
ü answer ç y= - 1÷
Therefore, the equation of the graph is y = -1 è x+3 ø
x+3 (4)

34
Worked-out example 3
a
+ q and g ( x) = ( x - 3) .
2
The graph below shows the graphs of the function f ( x ) =
x+ p
The y-intercept of f ( x) is (0;3)

1.1. Write down the equation of the asymptotes of f ( x) . (2)

1.2. Determine the values of a, p and q. (4)

1.3. What are the coordinates of the turning point of g ( x) . (1)

1.4. What is the range of g ( x) ? (1)

1.5. What is the domain of f ( x) ? (2)

1.6. Give one value of x for which f ( x) = g ( x) . (2)

1.7. If f ( x) is shifted downwards by 4 units and to the left by 1 unit,

give its new equation. (1)
1.8. For which values of x is g ( x) increasing? (1)

[14]

35
Possible solutions

3.1 x = 2 and y = 2 ü x=2

ü y=2
(2)
3.2 p = 2 and q = 2 ü p=2
a
y= +2 üq=2
x-2
To determine the value of a, subst. the point (0;3) ü Subst (0;3)
into the equation:
a
0= +2
3- 2
a üa=-2
-2 =
1 (4)
a=-2
3.3 The turning point of g ( x) is (3;0) ü (0;3)
(1)
3.4 The range of g ( x) is y³0 ü y³0
(1)
3.5 The domain of f ( x) is x Î! , x ¹ 2 üü x Î! , x ¹ 2
(2)
3.6 The two graphs intersect when x = 3 (and when ü x =3
x = 1) ü x =1
(2)
3.7 2 2
y= -2 ü y= -2
x -1 x -1
(1)
3.8 g ( x) is increasing for x > 3 . ü x >3
(1)

36
Exponential function

1. Standard form: f ( x) = a.b x + q

: y = a.b x + p + q, where b > 0, b ¹ 1

SHAPE
0 < b <1

a determines the shape of the graph.

If a > 0 then the graph lies above the asymptote. If a < 0 then the graph lies below the asymptote.
y y = -2x + 4
y = 2x + 4 y

EFFECTS OF p AND q
p affects the horizontal shift
y If p < 0 (negative), then the
of the graph. y = 3x -1 - 2 graph moves p units to the
right
x

p affects the horizontal shift If p > 0 (positive), then the

of the graph. y
graph moves p units to the left

37
q affects the vertical shift of y If q > 0 (positive), then the
the graph. Also gives the
horizontal asymptote y = q y = 3x+1 + 1 graph moves q units upwards.

q affects the vertical shift of y If q < 0 (negative), then the

the graph. y =3 x -1
-2 graph moves q units
downwards.

INTERCEPTS WITH AXIS

Intercepts example Graph
x-intercept; let Given: f ( x) = 2.3 x -2
-6 y
y=0
lety=0
x
0 = 2.3x- 2 - 6
6 = 2.3x- 2
3 = 3x- 2
\x - 2 =1
x=3

Given: h( x) = 2
x
+2 y
lety=0
0 = 2x + 2
-2 = 2x

38
 ASYMPTOTE
Example y
The graph has ONLY h( x ) = 2 + 2
x
ONE asymptote:

• Horizontal asymptote - Horizontal Asymptote

y=q y=2

Horizontal asymptote
x

NB: Exponential graph does not have a vertical asymptote.

DOMAIN AND RANGE

The domain of an exponential graph is Example
xÎ ! . f ( x) = 2.3x-2 - 6
Domain:
xÎ !
The range of an exponential graph is f ( x) = 2.3x-2 - 6
determined by the value of q. Range: a > 0
y Î ( q; ¥ ) , if a > 0 y Î ( -6; ¥ )
y Î ( ¥; q ) , if a < 0 Range: a < 0
x
æ1ö
h( x) = -3. ç ÷ + 2
è2ø
y Î ( ¥;2)

Sketching of exponential graphs

• Draw the asymptote using dotted line (the asymptote of y = a.b x + p + q is y = q ).

• Calculate the x-intercept and y-intercept and plot them on the axes.
• If necessary, calculate more points to enable you to draw the correct curve.
• Draw the curve and add the equation of the graph to both curves.

39
Worked-out example 1

Given: h( x ) = 2 x - 4
1.1 Write down the equation of asymptote. (1)
1.2 Determine the coordinates of the y-intercept of h. (2)
1.3 Calculate the x-intercept of h. (2)
1.4 Draw a sketch graph of h, clearly showing all asymptotes, intercepts with
the axes and at least one other point on h. (3)
1.5 Write down range of h. (1)
1.6 Describe the transformation from h to g if g ( x ) = 2- x + 1 (2)
[11]
Possible solutions

1.1 y = -4 ü y = -4
(3)
1.2 h( x ) = 2 - 4
0 ü x=0
ü y=3
y = -3 (2)
\ (0; -3)
1.3 0 = 2x - 4 ü y=0
4=2 x

22 = 2x ü x=2
\2 = x (2)
(2;0)
1.4 y

ü x- & y-intercepts

ü asymptote

ü shape

(1)

0 2 x

-3
-4

1.5 y Î ( -4; ¥ ) ü answer

40
 1.6 g ( x ) = h( - x ) + 1
ü the y-axis
g ( x) = 2- x - 4 + 5 ü shifted five
g ( x ) = 2- x + 1
(2)
\ Reflection about the y-axis and
shifted five units up.

Worked-out example 2

2.1 Sketch the graph of f ( x ) = 3x + 2 + 1 (4)

2.2 Label all intercepts with the axes and asymptotes. (3)
2.3 Write down the domain and range of the graph. (2)

Possible solutions

2.1 The horizontal asymptote is y =1. ü Subst. asymptotes

For the x-intercept, let y = 0 :
0 = 3x + 2 + 1 ü Simplification
x+2
-1 = 3x + 2 ( -1 = 3 )
There are no x-intercept.
For the y-intercept, let x = 0 :
y = 30 + 2 + 1
y = 9 +1
=10
y - intercept is (0;10) ü y-intercept
To plot another point on the graph, when x = - 1 :
y = 3-1+ 2 + 1
y=4
ü point (-1; 4)
\Point (-1; 4) is on the graph
(4)
2.2 y ü shape

ü y-intercept

ü asymptote
(3)
x

2.3 The domain: xÎ! ü The domain: xÎ!

The range: y >1 ü The range: y >1 (2)

41
Worked-out example 3

Write down the equation of the function f ( x) = 2x , in the form y = ... , if it is:
3.1 Shifted to the right by 3 units. (1)
3.2 Shifted to the right by 2 units and upwards by 1 unit. (1)
3.3 Shifted downwards by 3 units and to the right by 1 unit. (1)
3.4 Stretched vertically by 3 units and shifted to the left by 2 units. (1)

Possible solutions:

3.1 y = 2x -3 ü Answer
(1)
3.2 y=2 x+2
+1 ü Answer
(1)
3.3 y=2 x -1
-3 ü Answer
(1)
3.4 y = 3.2 x+2 ü Answer
(1)

Determining the equation

• Determine the equation of the asymptotes,

• Determine the value of q, then substitute into the equation.
• Substitute coordinates of a point on the graph into the equation to determine the value a.

• Write down the final equation in the form y = a.b x + p + q

42
Worked-out example 4

Sketched below is the graph of f (x ) = b x + m passing through (0 ; - 2) and (1 ; 0).

The equation for asymptote of f is given by the equation y = -3 .

1 x
-2
-3

4.1 Determine the value of m and b. (3)

4.2 Write down the range of f. (1)

26
4.3 For which values of x will f ( x) = - (3)
9
[07]

Possible solution

4.1 m = -3 ü m = -3
y = b -3
x
ü subst. (1 ; 0)
0 = b1 - 3 ü value of b
\3 = b (3)
4.2 y Î ( -3; ¥ ) ü answer
(1)
4.3 26 26
3x - 3 = - ü subst. -
9 9
26
3x = 3 -
9
1 ü simplification
3x =
9
1
3x = 2
3
3 = 3-2
x
ü answer

43
 \ x = -2 (3)

Worked-out example 5

The diagram below shows the graphs of f ( x) = 2 x + p + q and g ( x) = - x + c

4.1 Determine the values of p, q and c. (5)

4.2 Write down the range of f ( x) . (1)
4.3 For which value (s) of x is:
4.3.1 f ( x) = g ( x) ? (1)

4.3.2 f ( x) ³ g ( x)? (1)

4.3.3 f ( x) £ g ( x)? (1)

4.4 If f ( x) is shifted to the right and 3 values up, write down its new equation. (3)
[12]

44
Possible solutions

5.1 c =3 (y-intercept, from the sketch). üc =3

q = -1 (Asymptote of the exponential graph) ü q = -1
Subst. the point (-2;0) into the equation to determine
the value of p.
ü subst. (-2;0)
0 = 2-2 - p -1
1 = 2-2 - p
20 = 2-2 - p (exponential law) ü exponential laws
\0 = - 2 - p
p=-2 ü p=-2 (5)
5.2 The range f ( x) is y > - 1. ü y > -1 (1)

5.3.1 f ( x) = g ( x) when x = 0(Point of intersection) ü x=0 (1)

5.3.2 f ( x) ³ g ( x) when x ³ 0 ( f ( x) lies above g ( x) ) ü x³0 (1)

5.3.3 f ( x) £ g ( x) when x £ 0 ( f ( x) lies below g ( x) ) ü x£0 (1)

5.4 y = 2 x + 2 -1 -1 + 3 ü subtracting 1
ü adding 3
(Subtract1from the p-value and add 3 to the q-value) ü answer (3)
x +1
y=2 +2

45
Inverse function

Learners must be able to determine, and sketches graph of inverse defined by:
• y = ax + q
• y = ax 2
• y = ax

THINGS TO REMEMBER
Definition of a function: A function f, is defined as a relationship between values, where
each input value maps to one output value. (In other words: for an equation to be called a
function there can be only one y-value for a particular x-value)

VERTICAL LINE TEST

To test if a graph is a function, you can use
y
the vertical line test: If a vertical line (a line
parallel to the y-axis) touches the graph more
than once at any point, the graph is not a
function.
x
NB: You do not have to draw the line
physically; you can just hold a ruler
parallel to the y-axis and move it for
testing.

TWO TYPES OF FUNCTION

One-to-one function: y
it is a function where there is a single y-value
for a particular x-value

46
Many-to-one function: y
A function cannot have more than one y value
to each x-value. However, a function can have
more than one x-value for a particular y-value.

HORIZONTAL LINE TEST

If the graph is passing the vertical line test,
y
then it is a function. The horizontal line test
can be used to determine what type of
function the graph represents.

• If a horizontal line touches the graph

once, it is one - to - one function. x
• If a horizontal line touches the graph
more than once at any point, it is a
many-to-one function (many x-values
to a single y-value).

Remember: If a graph is not a function, it is known as a relation.

• To determine the inverse of a graph, swop every x and y-coordinate with each other.
This is done for every point on the graph.
• To express this in the form of an equation, follow the same principal and swap the
positions of x and y.
• In most cases the equation of a graph is given in the form of f(x) = …
• The general way of expressing the inverse is in the form f – 1 (x).
–1
The notation f (x) = … can only be used to represent the inverse of a one-to-one relation.

• It is important to notice that the domain and range if the inverse graph also swop.

47
 RESTRICTING THE DOMAIN

If a function is a many-to-one function (many y

x-values to a single y-value) the inverse will
be a one-to-many relation (many y-values to
a single x-value)

This means that the inverse of any many-to-

y
one function will never be a function.

However, the domain of a many-to-one y

function can be restricted so that its inverse is
a function

Only the inverse of a one-to-one function is y

itself a function.

48
A restriction in the domain of the original
y
x³0 y = x2
function corresponds to a restriction in the
range of the inverse.
y= x
f: f -1 x
Domain: x ³ 0 Domain: x ³ 0
Range: y³0 Range: y³0
y
f ( x) = x 2 x£0

f: f -1
Domain: x £ 0 Domain: x ³ 0 x
Range: f -1
Range: y£0
f -1 ( x) = - x

Worked-out example 1

Given: f ( x) = 2 x + 6

1.1 Determine the equation of the inverse of f in the form y = ... (2)

1.2 On the same set of axis, sketch the graphs of f and f -1 . Indicate clearly the
intercepts with the axis, as well as another point on the graph of each f and f -1 . (4)

1.3 Hence or otherwise, determine the x coordinate at the point of intersection

of f and f -1 . (2)

Possible solutions

1.1 y = 2x - 4
Swap x and y ü swapped x and
x = 2y - 4 around y
2y = x + 4 Make y subject of the formula
1 ü equation
y = x+2
2 (2)

49
1.2 y f
ü intercepts
ü shape
f

2 f -1
x ü intercepts
ü shape
-4 2
(4)

-4
Table method

x -2 -1 0 1 2
y

1.3 Read from the graph: x = 4 ü ü answer

(2)

50
Worked-out example 2

Given: g ( x) = 2 x + 3 for -1 £ x £ 4 .

4
-1 T x

2.1 Write down coordinates of T. (2)

2.2 Determine the domain of g -1 . (2)

2.3 Sketch the graph of the g -1 . (3)

2.4 For which value(s) of x will g ( x) £ g -1 ( x) . (3)

[10]

51
Possible solutions

2.1 0 = -2 x + 3 ü 0 = -2 x + 3
T is on x-axis, let y = 0
2x = 3
3 ü \T ç
æ3 ö
x= ;0÷
2 è2 ø
æ3 ö (2)
\T ç ;0÷
è2 ø
2.2 y = -2(-1) + 3 y = -2(4) + 3 ü interval
ü notation
=5 = -5
(2)
\ x Î [ -5;5] Domain of g -1 is the range of
or g. Calculate y.
-5 £ x £ 5

2.3
y 6
5 ü intercept
ü end points
4 ü shape
(3)
3
2
1
x
-5 -4 -3 -2 -1 0 1 2 3 4 5
-1
g
-2
-3
-4
-5

2.3 1 3
-2 x + 3 = - x + ü equating
2 2
1 3
-2 x + x = -3 +
2 2
3 3
- x=- ü x value
2 2
x =1
\ y = -2(1) + 3 = 1 ü x ³1
(3)
Point of intersection is (1 ; 1)
\x ³1

52
Worked-out example 3

Given: f ( x) = 2 x 2

3.1 Determine the equation of the inverse of f in the form f -1 ( x) = ... (2)

3.2 On the same set of x-axis, sketch the graphs of f and f -1 . Indicate clearly the

intercepts with the axis, as well as another point on the graph of each f and f -1 . (4)

3.3 Determine the domain and range of both f and f -1 . (4)

3.4 Is f -1 a function? Give a reason for your answer. (2)

3.5 How can f be restricted so that the inverse is a function? (2)

3.6 On the separate set of axis, sketch both restricted function and their inverses. (4)

53
Possible solution

3.1 y = 2 x2
ü swapped x and y
x = 2 y2
1
x = y2
2
ü equation
1
\y = ± x (2)
2
1
f -1 ( x) = ± x
2
3.2 y
6 f
ü one point
ü shape
5
f
4
f -1
3 ü one point
ü shape
T(-1 ; 2) 2
(4)
1
x
-3 -2 -1 0 1 2 3 4 5 6
-1
Q(2 ; -1)
-2

3.3 For f: ü xÎ!

Domain: x Î ! or x Î (-¥; ¥) ü y Î [0; ¥ )
Range: y Î [0; ¥ )
f -1
For f -1 : ü x Î [ 0; ¥ )
Domain: x Î [0; ¥ ) ü yÎ!
Range: y Î ! or y Î (-¥; ¥) (4)
3.3 No, One value of x is associated with two values of y. ü No
ü reason
(2)
3.4 x £ 0 and x ³ 0 ü x£0
ü x³0
(2)

54
3.5
y 7
6
ü shape of f
5 f -1
ü shape of f
4

1
x
-3 -2 -1 0 1 2 3 4 5 6
-1

-2

And
y 7
6
ü shape of f
5
f ü shape of f -1

2
(4)
1
x
-3 -2 -1 0 1 2 3 4 5 6
-1
-2

55
Worked-out example 4

In the diagram below, the graph of f ( x) = ax 2 is drawn in the interval x ³ 0 .

-1 -1
The graph of the inverse, f is also drawn. R(4 ; 8) is a point on f and T is on f .

R(4 ; 8)

f T

0 x

4.1 Is f -1 a function? Motivate your answer. (2)

4.2 Determine the equation of f. (2)
4.3. If T is the reflection of R in the line y = x , write down the coordinates of T. (1)
4.4 Write down the equation of f -1 in the form y = ... (3)

Possible solution

4.1 Yes ü Yes

One value of x is associated with one value of y ü Reason
(2)
4.2 8 = a(4) 2 ü subst. (4;8)
8 = 16a
1 1
ü a=
a= 2
2
(2)
4.3 T(8; 4) ü answer
(1)
4.4 1 2 ü Swapped x and y
y= x
2
1
x = y2
2
ü y = ± 2x
y = ± 2x (2)

56
 How to determine the inverse:
Exponential function
y = bx
Standard for: f ( x) = ab x x = by
y = logb x
Inverse: f -1 ( x) = log b x
A logarithm is a way of writing an exponential equation with the exponent as the subject of the
equation.

Definition: In the equation x = b y where b > 0 and b ¹ 1 , b is referred to as the base and y is the
exponent.

In general, converting from exponential form to logarithmic form is as follows:

x = b y then y = log b x where b > 0 and b ¹ 1 and x > 0

The logarithmic function is the inverse of the exponential.

CHANGE FROM LOG TO EXPONENTIAL FORM

1. y = log b x
by = x
Shape

y
f

Domain:
Range:

x
Domain:
Range:

57
Worked-out example 5

Given: g ( x) = 3x

5.1 Write down the range of g. (1)

5.2 Determine the equation of g -1 in the form y = ... (2)

5.3 Sketch the graph of g and g -1 on the same set of axis. (4)

5.4 Write down the domain of g -1. (1)

5.5 Determine the equation of the asymptote of r ( x) = g ( x - 2) . (2)

Possible solution

5.1
y Î ( 0; ¥ ) üü y Î ( 0; ¥ )
yÎ! ; y > 0 (2)
5.2 y =3 x

ü swapped x &
x = 3y
y
y = log3 x
ü equation
(2)
5.3 y 9
8 ü intercept
ü shape
7
g
6 ü intercept
5 ü shape
(4)
4
3
2
1
x
-3 -2 -1 0 1 2 3 4 5
-1
-2
-3
5.4
xÎ ( 0; ¥ ) ü xÎ ( 0; ¥ )
(1)
5.5 x=2 üü x = 2
(2)

58
Worked-out example 6

Given the function: h( x) = log 1 x .

2

6.1 Show that the inverse can be express as h-1 ( x) = 2- x . (2)

6.2 Sketch both h and h -1 on the same set of axis, clearly indicate all intercepts
with axis and one point on each graph. (4)

6.3 Determine the domain of f ( x) = h( x + 3) . (1)

Possible solution

6.1 y = log 1 x
3 ü swapped x &
x = log 1 x y
3
x
æ1ö
y=ç ÷ ü equation
è3ø
y = 3- x (2)
6.2 y h
7
ü one point
6 ü shape

5
h -1
4 ü one point
3 ü shape
P(-1;3)
2 (4)

1
x

-2 -1 0 1 2 3 4 5
-1
S(3;-1) h
-2

6.3
x Î ( -2; ¥ ) ü x Î ( -2; ¥ )

(3)

59
3.2 Practice Questions

1. Given: f ( x ) = 2x2 - 8
1.1 Calculate the x-intercepts of f. (2)
1.2 Calculate the y-intercept of f. (2)
1.3 Write down the coordinates of the turning point of f. (2)
1.4 Sketch the graph of f, clearly show all intercepts and turning point (3)
1.5 Determine the range of f(x). (2)
1.6 For which values of x will f ( x) £ 0 (2)

1.7 Determine w , if ( w;10) is a point on the graph of f (x). (2)

[15]

2. The sketch below shows the graphs of h( x) = ax 2 + q and k ( x) = x + 2 . The graphs

intersect at (- 2 ; 0) and (1 ; 3) .
y

2.1 Determine the values of a and q. (3)

2.2 For which value(s) of x is h(x) ³ k (x) ? (2)

2.4 Determine the interval where h decreases. (2)

2.5 Write down the range of p where p(x ) = -h(x ) + 2. (4)

60
 [13]

3 The graph of h( x) = - x 2 + 9 and g ( x) = x - 3 are sketched below. A and B are the

x-intercepts of f. C and D are the y-intercepts of h and w respectively. K is a point on w such
that BK// x-axis. H and w intersect at A and E.
y
C

h K
g E

x
A B

3.1 Write down the coordinates of C. (1)

3.2 Write down the coordinates of D. (1)
3.3 Determine the length of CD. (1)
3.4 Calculate the coordinates of B. (3)
3.5 Determine the coordinates of E, a point of intersection of f and g. (4)
3.6 For which values of x will:
3.6.1 h( x ) < g ( x ) (2)
3.6.2 h( x).g ( x) ³ 0 (2)

3.7 Calculate the length of AK. (4)

4
4 Given: p ( x) = -2
x
4.1 Determine the equation of the asymptote of p. (1)
4.2 Calculate the x-intercept of p. (2)
4.3 Sketch the graph of p and clearly show the all the intercepts with the axis. (3)
4.4 Write down the domain of p. (2)
4.5 Calculate the value of d if the line of symmetry is y = - x + q (1)

61
 a
5 The sketch below shows the graph of f ( x) = + q . Point W(-2 ; 7) lies on f.
x

5.1 Write down the value of a and q. (3)

5.2 Determine range of f. (2)
5.3 Calculate the equation of axis of symmetry with negative gradient. (2)
5.4 Calculate the x-coordinate of the points of the intersection of f and line of
symmetry. (4)

62
 3
6 The sketch below shows f and g, the graphs of g ( x) = + 2 and k ( x) = ax + q
x
Respectively. Points A(-1 ; -4) and B(3 ; 4) lie on the graph g.
The two graphs intersect at the points C and D

6.1 Show that a = 2 and q = -2 (2)

6.2 Determine the values of x for which f ( x) = g ( x) . (4)
6.3 For which values of x is f ( x) < g ( x) (2)
6.4 Write down the length of h if h( x) = f ( x) + 4 (1)

7 Given: f ( x) = -3x + 9
7.1 Write down the equation of the asymptote of f. (2)
7.2 Determine the x- and y-intercepts of f. (3)
7.3 Draw sketch graph of f. Indicate the intercepts with the axes and the asymptote. (3)
7.4 Write down the equation of g(x), if h( x) = - f ( x) . (2)

63
8 The graph of f ( x) = a x is represented in the diagram below. A(2 ; 4) is a point
On the graph.

8.1 Determine the equation of f. (3)

8.2 Write down the coordinates of C, y-intercept of f. (2)

8.3 Write down the range of f. (1)

8.3 Determine the equation of k, if f is reflected about the y-axis and moved Two
downwards. (2)

64
3.3 POSSIBLE SOLUTION

1.1 For x-intercept: le y = 0

0 = 2 x2 - 8 ü y=0
0 = x -4 2

0 = ( x - 2)( x + 2)
ü factors
x = 2 or x = -2 ü answers

(3)
1.2 ü x=0
y = 2(0)2 - 8 ü answer
y = -8 (2)
1.3 (0; -8) üü (0; -8)

(2)
1.4

y
6
5
4
3
2
1 x ü x- & y-interepts
-3 -2 -1 0 1 -2 -3
-1
-2 ü turning point
-3
-4
ü shape
-5
-6 (3)
-7
-8
-9

1.5 y Î [ -8; ¥ ) or ü interval

ü notation
(2)
1.6 xÎ [ -2;2] ü interval
ü notation
or (2)
-2 £ x £ 2 ü interval
ü notation
(2)

65
1.7 10 = 2w2 - 8 ü subst. ((w ; 10)
18 = 2w2
9 = w2
ü answers
w=± 9
w = ±3

[15]

2.1 q=4 ( y-intercept or turning point) ü q=4

ü subst. (-2 ; 0)
0 = a(-2)2 + 4
-4 = 4a ü value of a
\ a = -1 (3)
2.2 xÎ [ -2;3] or ü interval
ü notation
-2 £ x £ 2 (2)
2.3 x Î (0; ¥) ü interval
ü notation
(2)
2.4
p( x) = -(- x2 + 4) + 2
ü p( x) = x -4
2
= x2 - 4
\ y Î [ -4; ¥ ) ü interval
ü notation
(3)
[10]

3.1 (0;9) y-intercept of h ü (0;9)

(1)
3.2 (0;3) y-intercept of h ü (0;3)
(1)
3.3 CD = 9 - 3
= 6 units ü 6 units
(1)
3.4 0 = -x + 9
2 ü y=0
x2 - 9 = 0
( x - 3)( x + 3) = 0 ü factors
x = 3 or x = -3 ü both answers
(3)
3.5 -x + 9 = x + 3
2
ü equating h & g
0 = x2 + x - 6 ü standard form
0 = ( x + 3)( x - 2) ü factors
\ x = -3 or x = 2 ü answers

66
 y = 2+3= 5
\ E(2;5) ü E(2 ; 5)
(5)
3.6.1 xÎ ( -3;2 ) ü answer
(1)
3.6.2 xÎ [0;3] ü answer
(1)
3.7 y = 3+3
=6 ü y value at K
\ BK = 6 units ü Length of BK
(2)
[15]

4.1 x=0 ü x=0

y = -2 ü y = -2
(2)
4.2 4 ü y=0
0= -2
x
4
2=
x
x=2 ü x=2
(2)
4.3
y ü x-intercepts
2
1 p
ü asymptotes
-4 -3 -2 -1 0 -1 1 2 3 4 x
-2
-3 ü shape
(3)
-4
-5
-6
-7
-8

4.4 q = -4 ü q = -4
(1)
[15]

67
6.1 4 - (-4) ü substitution
m=
3 - (-1)
=2 ü a=2
a=2

4 = 2(3) + q ü subst.(3;4) or (-1;-4)

q = -2 ü q = -2
(4)
6.2 3 ü y=0
0= -2
x
3
2=
x
3
x=
2 ü answer
(2)
6.3 æ3 ö üü answer
x Î ç ;0 ÷ (2)
è2 ø
6.4 3
h( x ) = -2+4
x
3
= +2
x
yÎ! , y ¹ 2 ü answer
(1)
[09]

68
7.1 y=9 ü y=9
(1)
7.2
y = -3 + 9
0 ü y=0

= -1 + 9 ü answer
=8
ü x=0
0 = -3x + 9
3x = 9
3x = 32 ü answer
\x = 2 (4)
7.3 y
9
8 ü x- & y-intercepts

f
ü asymptote

ü shape
0 2 x (3)

7.4 h( x) = -(-3x + 9) üü answer

= 3x - 9 (2)

[10]

69
4. Financial mathematics
4.1 Notes/Summaries/Key Concepts

TOPICS KEY WORDS HOW TO LEARN FORMULA

COMPOUND Appreciation/ The account holder deposits A = P(1 + i)n

INTEREST/ escalates/ money and stay away from
A is the final amount
INFLATION increases the bank for a considerable
P is the principal /sum of
(To gain more time and only comes back to
money invested or
value) collect the money at the end
borrowed
of period agreed upon.
n is the number of periods
Remember the interest is not
(How long/how many
the same every year.
etc..)

Worked-out example

1. Andrew invest R1200 at an interest rate of 10% compounded quarterly. Calculate how much
will Andrew’s investment be worth after 5 years.

Possible solution

1. A=?
ücorrect n
P = 1200 n = 5 years ´ 4 = 20
i = 10% =0.01
A = P(1 + i)n
20
æ 0.1 ö üsubstitution
= 1200 ç1 + ÷
è 4 ø
R1966,34 ü answer
(3)

70
2. R15 000 is invested into a savings account. Calculate the value of the investment of the
savings after 6 years if interest rates is 13% compounded monthly.

Solution

2. n = 6 ´12 = 72
A=?
P = 15000
0.13
i= 0.13
12 üi =
12
A = P(1 + i)n
72 üsubstitution
æ 0.13 ö
= 15000 ç1 + ÷
è 12 ø
ü answer
R32585.11 (3)

3. Two friends each receive an amount of R8 000 to invest for a period of 6 years. They
invest the money as follows:
• Redishe: 8,5% per annum simple interest. At the end of 6 years, Redishe will receive a
bonus of exactly of 6% of the principal amount.
• Thato: 8% per annum compounded quarterly.

Who will have the bigger investment after 6 years? Justify your answer appropriate
calculations. (6)

Possible solution

3. Redishe: A = P(1 + in)

= 8000(1 + 6 ´ 0.085) üsubstitution

üanswer
= R12080
6% ´ R8000
ü R 480
= R 480
Total = R8000 + R 480
= R8480
= R8480
Thato: i = 0.08 ÷ 4 = 0.02
n = 6 ´ 4 = 24 months

71
 A = P(1 + i)n
üsubstitution
= 8000(1 + 0.02) 24 ü answer
(6)
= R12867.50
\ Thato will have the bigger investment

TOPICS KEY WORDS HOW TO LEARN FORMULA

Depreciation The amount decreasing is A = P(1 - i)n
on a reducing Scrap value /old not the same year on year.
balance

Worked-out example

1. The value of motor cycle depreciates by 12% per year on the reducing balance method.
The motor cycle is currently worth R45 000.Calculate the value of the motor cycle after five
years.

Solution

1. A=?
P = 45000
12
i= = 0.12
100
A = P(1 - i)n ücorrect formula

= 45000(1 - 0.12)5 üsubstitution

= R 23747.94 ü answer
(3)

TOPICS KEY WORDS HOW TO LEARN FORMULA

Simple Straight line/linear Interest stays the same during A = P(1 - in)
Interest/Hire the investment period.
purchase/Strai
ght line basis Hire purchase simple means
increasing

Straight line basis –it is

simple mean
decrease/depreciate A = P(1 - in)

72
Worked-out example

1. A car worth R150 000 depreciates at a rate of 9% (simple interest) p.a. How
much the car worth after 5 years.

Solution

1. A=?
P = 150000
i = 0.09
A = P(1 - in) ücorrect formula
üsubstitution
= 150000(1 − 0.09 × 5)
= R82 500 ü answer
The car will be worth R82 500 after 5 years
(3)

2. The value of a piece of machinery depreciates from R 20000 to R10000 in

years. What is the rate of depreciation, correct to two decimal places, if is
calculated on the straight line method. (4)

Solutions

2. A = 10 000
P = 20000
n=4
i=?
A = P(1 - in)
üformula
10000 = 20000(1 - 4i ) ücorrect substitution

10000 20000(1 - 4i )
=
20000 20000
1
- 1 = -4i
2
-0.5 = -4i

73
 i = 0.125 ü i = 0.125
\ i = 0.125 ´100
r = 12.5% ü r = 12.5%
(4)

TOPICS KEY WORDS HOW TO LEARN FORMULA

Nominal and Nominal is Different compounding m
æ im ö
effective compounded m periods: 1 + ieff = ç1 + ÷
interest rate times in a year. è mø
• The main issue is
Effective is compounding periods.
From the formula:
compounded
annually. • Interpret the concepts on
how to deal with • i m is for the
compounding periods: nominal interest rate
o Half yearly / Bi-nnually/
and
Semi-annually: n´ 2 and
i • ieff is for the
2 effective interest
rate.
o Yearly: n and i never
change

i
o Quarterly: n´ 4 and
4
i
o Monthly: n ´ 12 and
12
i
o Daily: n ´ 365 and
365
1
o Weekly: n ´ 52 and
52

74
Worked-out example

1. Convert a nominal interest rate of 7% per annum compounded semi-annually to the

effective annual interest rate.
(4)
Solution

2.
æ im ö
m ücorrect formula
1 + ieff = ç1 + ÷
è mø
2
æ 0.07 ö ümaking i the subject of the
ieff = ç1 + ÷ -1
è 2 ø formula
i = 0.071225 ü i = 0.071225 ´100
\ i = 0.071225 ´100
\ i = 7.12% is the effective annual interest
rate. ü final answer
(4)

TOPICS KEY WORDS HOW TO LEARN FORMULA

75
Using 23 = 7 To change exponential form 23 = 7
logarithm to to logarithm
determine “n” • 3 is the exponent Introduce law of changing a
(number of or base by introducing Log both
• 2 is a base
sides:
period(s))
• 7 is a number Logarithm to exponential e.g.
log 23 = log 7
3log 2 = log 7
log 7
3=
log 2
3 = log 2 7
• Write as single log
• Manipulate an exponent
and a number but,
• Base of exponent is also a
base for logarithm.
eg. 23 = 7
log 2 7 = 3

Worked-out example
1. John deposits R5 000 into a savings account. The interest paid is 8% p.a., compounded
monthly. How long will it take her to double his savings?

2. Lerato repays a loan of R300 000 by means of equal monthly instalments of R7 000 per
months starting one month after the loan was drawn. The bank charges interest on the
outstanding balance of the loan at 13% p.a., compounded monthly. Calculate how many
monthly payments it will take to repay the loan.

Solutions

1. P = 5000 n = ? i = 0.08 A = 10000

A = P(1 + i)n ücorrect formula
n
æ 0.08 ö üsubstitution
10000 = 5000 ç1 + ÷
è 12 ø
n
10000 æ 0.08 ö
= ç1 + ÷
5000 è 12 ø

76
 n
æ 0.08 ö
2 = ç1 + ÷ ü introduction of logs
è 12 ø
n = log æ 2 ü answer
0.08 ö
ç1+
è 12 ø
÷ (4)

n = 104.32 months
2. n = ? i = 0.13 P = 300000 x = 7000
V

x éë1 - (1 + i) - n ùû ü formula
Pv =
i
é æ 0.13 ö - n ù
7000 ê1 - ç1 + ÷ ú
êë è 12 ø úû ü substitution
300000 =
0.13
12
-n
æ 0.13 ö
ç1 + ÷ = 1 - 4.64285714286
è 12 ø ü calculation
-n
æ 0.13 ö
ç1 + ÷ = -3.64285714286
è 12 ø
ü introduction of logs
n = log æ 0.13 ö
3.64285714286
ç1+ ÷
è 12 ø
üanswer
= 119.98 months (5)

TOPICS KEYWORDS HOW TO LEARN FORMULA

Future value • Savings It is very important x éë(1 + i) n - 1ùû
of annuities • Investing to investigate all the Fv =
• Retirement options when i
annuities investing money. Fv ® future value
• Deposits are x ® value of the instalment
made i ® interest rate
n ® number of payments
(deposits)/number of
periods

Worked-out examples 1

Ricky opened a savings account with a single deposit of R2 000 on first April 2018. He then
makes 18 monthly deposits of R800 at the end of every month. His first payment is made on 30
April 2018 and his last payment on 30 September 2019. The account earns interest at 16% per
annum compounded monthly.

Determine the amount that should in his account immediately after his last deposit is made (that
is September 2019).

77
Possible solution

1. A = P(1 + i)n
18
æ 0.16 ö
= 2000 ç1 + ÷ ü substitution
è 12 ø
A = 2538.47 üanswer

x é(1 + i ) - 1ù
n
ücorrect formula
Fv = ë û
i
éæ 0.16 ö18 ù
800 êç1 + ÷ - 1ú üücorrect substitution
êëè 12 ø úû
Fv =
0.16
12 ü answer
= R16154.08
(6)

Worked out example

Jack’s took out an ordinary annuity for him when he was born. The monthly payment is
R200 and the interest rate is 10% p.a., compounded monthly.

Peter’s parents started an annuity fund for him when he turned 12 years old. The monthly
payment is R800 and the interest is 12% p.a., compounded monthly.
st
Both Jack and Peter will receive the money from the annuities on their 21 birthday.

st
a) Who will receive more money on their 21 birthday? (6)
b) How much money did each set of parents contribute in total? (2)
c) Express the interest earned as a percentage of the total contribution in each case. (4)
d) What do you conclude from your answer to a) to d)? (3)

Possible Solution

a. x é(1 + i ) - 1ù
n

Jack: Fv = ë û
i
éæ 0.1 ö 21´12 ù üü correct substitution
200 êç1 + ÷ - 1ú
êëè 12 ø úû
Fv =
0.1
12
üanswer

78
 = R170 290.05

éæ 0.12 ö9´12 ù üü correct substitution

800 êç1 + ÷ - 1ú
êè
ë 12 ø ûú
Peter: Fv =
0.12
12 üanswer
= R154 314.06 (6)
b. Jack:
ücorrect answer
parents’ contribution = R 200 ´ 21´ 12 = R50 400
Peter:
ücorrect answer
parents’ contribution = R800 ´ 9 ´ 12 = RR86 400 (2)
c. Jack:
parents’ interest = R170 290.05 - R50 400

= R119 890.05 üücorrect interest

Peter:
parents’ interest = R154 314.06 - R86 400
üücorrect interest
= R67 914.06 (4)

d. R119 989.05 üanswer

Jack : ´100% = 237.88%
R50 400
R67 914.6 üanswer
Peter: ´100% = 78.60%
R86 400
Jack: parents’ contributed less than Peter parents’
did, but Jack’s annuity earned much more interest, ücorrect explanation
because it ran for 21 years, as opposed to 9 years.
The longer an annuity should therefore be viewed
as a long term investment.

(3)

TOPICS KEY WORDS HOW TO LEARN FORMULA

• Loan • Pv is the amount of money x éë1 - (1 + i) - n ùû
• borrow owed Pv =
Present value i
• x is the instalments
of annuities • bond
depending on how it is
• mortgage compounded.
• Deposit paid can be given
as an amount (e.g R4 000)
or in percentage (e.g 10%
of the initial amount).

79
Worked out example

1. Themba takes out a loan of R100 000 to buy a house. The loan is repaid over 20 years.
The interest paid on the amounts outstanding is 8.5% pa, compounded monthly.
. Calculate the monthly instalments over 20 years. (3)

2. A couple buys a car for R450 000. They put down a deposit and get a car for the balance at
a rate of 11% p.a., compounded monthly. The couple calculates that it will take 6 years to
repay the loan if they make a regular monthly payments of R3 800.
a) How much money have they borrowed from the bank? Leave your answer to the
nearest thousands rand. (2)
b) Discuss their final payment. (2)
c) Calculate deposit price of the car. (1)
d) By the time they have paid for their car in full, how much interest will they have paid the
bank? (2)
e) If they increase their monthly payments by R300, how long will it take them to repay
their loan? (3)

f) If they decrease their monthly payments by R300, how long will it take them repay their
loan? (3)

3. A loan of R100 000 is repaid over a period of 6 years, from the time that the loan is taken ,by
equal monthly payments at an interest rate of 6.5% per annum compounded monthly. If
payments start 5 months after the loan is granted, what monthly payments are required to
repay the loan? (5)

Possible solution

1. !,#%
Pv = R100 000 ; 𝑖 = %&
; n = 20 ´12 = 240

x é1 - (1 + i ) ù
-n

Pv = ë û ü formula
i
é æ 0.085 ö-240 ù ü correct
x ê1 - ç1 + ÷ ú
êë è 12 ø úû substitution
100 000 =
0.085
ü making x the
12
subject of the
x = R867.82 formula

(3)
2.a) 0.11 ü n = 6 ´ 12 = 72
Pv = ? ; i = ; n = 6 ´12 = 72
12

80
 x é1 - (1 + i ) ù
-n

Pv = ë û
i
é æ 0.11 ö-72 ù
3800 ê1 - ç1 + ÷ ú ü substitution
ê è
ë 12 ø ûú
Pv =
0.11
12 ü answer
= R199 641.92 (3)
They will borrowed R199 000 from the bank.
b) Then final monthly payments will be slightly less than usual i.e üü correct
R3 800 - R641.92 = 3158.08 calculation

(2)
c) The deposit was R 450 000 - R190 000
= R 251 000 ü answer
(1)
d) The total payments = 72 ´ R3 800 - R641.92
= R 272 958.08 ü correct
They borrowed R199 000 from the bank, so the difference is calculation
interest R 272 958.08 - R199 000 = R 73 958.08
üanswer
(2)
e) x é1 - (1 + i ) ù
-n

Pv = ë û
i
é æ 0.11 ö- n ù
5100 ê1 - ç1 + ÷ ú
ê è
ë 12 ø ûú
199 000 =
0.11
12
3931 æ 0.11 ö ü substitution
- = - ç1 + ÷
6120 è 12 ø
3931
-n = log æ 0.11 ö
ç1+
è 12 ø
÷ 6120
- n = -4.241741904
n = 4.241741904 ÷ 12
4 years and 1 month. ü introduction of
logs

üanswer
(3)
f) é æ 0.11 ö ù -n

3500 ê1 - ç1 + ÷ ú
ê è
ë 12 ø ûú
ü substitution
199 000 =
0.11
12

81
 0.11 æ 0.11 ö
-n ücorrect
199 000 ´ = 3500 ç1 + ÷ calculation
12 è 12 ø
-n
2189 æ 0.11 ö
- = - ç1 + ÷
4200 è 12 ø
2189 üintroducing of
-n = log æ 0.11 ö logs
ç1+ ÷ 4200
è 12 ø
- n = -71.41329235
n = 71.41329235 ÷ 12 üanswer in years
5 years and 11 months and months
(3)

3.
There are 4 months which is already elapsed üsubstitution
ü answer
A = P(1 + i)n

= 100 000 (1 + 0.065 4

12 )
= R123 491.5148 ücorrect formula
68 months payments to be made
x é1 - (1 + i ) ù
-n

Pv = ë û
i üsubstitution
é æ 0.065 ö ù -68

x ê1 - ç1 + ÷ ú
ê è
ë 12 ø ûú
123 491.5148 =
0.065
12
0.065
123 491.4948 ´
x= 12
é æ 0.065 ö ù -68

ê1 - ç1 + ÷ ú ü answer
ëê è 12 ø ûú (5)
\ x = R 2175.85 ü
\ The monthly payments would be R 2175.85

82
 TOPICS KEY WORDS HOW TO LEARN FORMULA
Balance on TWO formulae to be used
loan/Outstandi when calculating outstanding
ng balance/ balance.
x é1 - (1 + i ) ù
-n
loan
settlement • The present value of Pv = ë û
annuity i
or
Or
• the compound interest
BL = A - FV
minus the future value of
x é(1 + i ) - 1ù
n
annuity.
= P(1 + i) -
n ë û
i

Worked-out example

1. A loan of R250 000 is repaid over 5 years with equal monthly payments ,starting one month
after the loan was granted.

1.1 Calculate the monthly repayments if the interest on the loan is 1% p.a., compounded
monthly. (4)
1.2 The client has financial difficulties and makes only 19 payments. Calculate the balance of
the loan at the end of the 19th month.
(4)

Possible solutions

83
1.1 PV = 250000 x = ? i = 0.01
12
n = 5 ´12

x éë1 - (1 + i) - n ùû
Pv = üformula
i
é æ 0.01 ö-60 ù
x ê1 - ç1 + ÷ ú
êë è 12 ø úû
250000 =
0.01
12
üücorrect substitution
0.01
250000 ´
x= 12
é æ 0.01 ö-60 ù
ê1 - ç1 + ÷ ú
êë è 12 ø úû

x = R 4273.44

üanswer
(4)

84
1.2 PV = Balance of Loan
ü n = 60 - 19 = 41
n = 60 - 19 = 41 ü i = 0.01
12 üanswer
x = R 4273.44
é æ 0.01 ö -41 ù
4273.44 ê1 - ç 1 + ÷ ú
ê è
ë 12 ø ûú
Pv = üCorrect substitution
0.01
12 üanswer
= R172181.14 (4)

Or

Balance of Loan = A - FV
x é(1 + i ) - 1ù
n

= P(1 + i)n - ë û
üformula
i

éæ 0.01 ö19 ù
19
4273.44 êç1 + ÷ - 1ú
æ 0.01 ö êëè 12 ø úû üü Correct substitution
= 250000 ç1 + ÷ -
è 12 ø 0.01
12
= R172181.14
ü answer
(4)

TOPICS KEY WORDS HOW TO LEARN FORMULA

Sinking funds • Escalate, Sinking Fund is an Formula
investment that is made to
• Increase, New(appreciation)
replace expensive
• Appreciation, equipment/ items in a few A = P(1 + i)n
• New valuable years’ time. It is used as a
goods, then use “savings account” that will
accumulate funds over a
A = P(1 - i)n
(compound
interests) period of time, which will
enable the investor to Sinking Fund = New – Old
• scrap value/old
purchase expensive items or or
• depreciates
to fund expensive capital
• decrease on an outlays in a few years’ time Sinking Fund = Appreciation
reducing - Depreciation
(Saving in order to replace)
balance Calculate the monthly
instalments using the future
value of annuity formula.

Note that the calculated

sinking fund becomes future
value

85
Worked-out examples

1. Lordwell buys new printers for R350 000.

1.1 How much will the printer be worth in 5 years’ time if its value depreciates at 8% per
annum on a reducing balance? (3)

1.2 After 5 years, the printer needs to be replaced. During this time , inflation remains
constant at 6% per annum. Determine the cost of a new printer after 5 years. (3)

1.3 He plans to sell this printer at its book value and use the money towards a new printer.
Calculate how much money he will need to put into a Sinking Fund to buy a new printer
in 5year’s time. (1)

1.4 Calculate the value of the monthly payments into the Sinking Fund if the interest is
9.5%p.a. compounded monthly over the next 5 years. (4)

Possible solutions

1.1 Use compound depreciation with

n = 5 i = 0.08 P = 350000 A = ?
üformula
A = P(1 - i)n
üsubstitution
= 350000(1 − 0.08)#
ü answer
= R 230678.5331 (3)

1.2 Use compound interest for inflation.

n = 5 i = 0.06 P = 350000 A = ?
üformula
A = P(1 + i)n
ü substitution
= 350000(1 + 0.06)#
üanswer
= R 468378.9522 (3)
1.3 Sinking fund=Cost of a new –book value of old
= R 468378.9522 - R 230678.5331
ücorrect calculation
= R 237700.42 üanswer
(2)
1.4 𝐹' = 237700,42 i = 0.095
12
n = 60 x = ?
x é(1 + i ) - 1ù
n
ü formula
Fv = ë û
i
éæ 0.095 ö60 ù ü substitution
x êç 1 + ÷ - 1ú
êëè 12 ø úû
237700 ==
237700,42
0.095
üanswer
12 (3)

86
 x = R3110.36

3.2 PRACTICE QUSTIONS A

3.2.1 Calculate how many years it will take an investment to double if it is invested at (4)
8% per annum compounded semi-annually.

3.2.2 Emely wants to purchase a car that costs 450 000. She is require to pay a 10% (2)
deposit and she will borrow the balance from a bank. Calculate the amount that
Emely must borrow from the bank.

3.2.3 The bank charges interest at 8% per annum, compounded monthly on the loan
amount. Emely works out that the loan will carry an effective interest rate of (4)
8,6% per annum. Is her calculation correct or not? Justify your answer with
appropriate calculations.

3.2.4 Emely takes out a loan from the bank for the balance of the purchased price and (4)
agrees to pay it back over 6 years. Her repayments start one month after her
loan is granted. Determine her monthly instalments if interest is charged at 9.5%
per annum compounded monthly.

3.2.5 Emely can afford to repay R8 000 per month. How long will it take her the loan (4)
amount if she chooses to pay 8 000 as a repayment every month?

3.3 PRACTICE QUESTIONS B

3.3.1 Khonani invested R12 000 in a bank. The investment remained in the bank for
12 years, earning interest at a rate of 8% per annum compounded annually. (2)
Calculate the amount at the end of 12years.
3.3.2. Determine the final gain of Khonani’s investment (1)

3.3.3 Show that her monthly instalment was R17 356,46 (4)
3.3.4 Calculate the outstanding balance on her loan at the end of the first year. (3)
3.3.5 Hence, calculate how much of the R4165550.40 that she paid during the first (3)
year, was taken by the finance company as payment towards the interest
charged.

3.4 PRACTICE QUESTIONS C

3.4.1 Mary invests R3 million into an account earning interest of 5% p.a. , (3)
compounded annually. How much will her investment be worth at the end
of 4 years?
3.4.2 Ester invests R6 000 that he got for her birthday. The bank offers her an (6)
interest rate of 5.5% p.a., compounded monthly. After 3 years, she adds
R2 000 to her investment and the interest rate changes to 6.5% p.a.,
compounded bi-annually. After another 2 years, she adds R1 500 to her
investment .How much will her investment be worth after 8 years if the
interest is 6% p.a., compounded weekly, during the last year?

87
3.4.3 Thaba invests R25 000 at a bank in an interest rate of 8% p.a., (4)
compounded monthly. After 5 years, He withdraws R7 000 to buy a TV-set.
What will the balance of his investment be after 8 years if the interest
changes to 6.5% p.a., compounded quarterly, for the last 2 years.
3.4.4 Hilda invests R5 million into an account earning interest of 8% per ( 6)
annum,compounded monthly. She withdraws an allowance of R50 000 per
month. The first withdrawal is exactly one month after she has deposited
the R5 million .How many withdrawals will Hilda be able to make?

3.5 PRACTICE QUESTION D

3.5.1 On the 1st day of January 2019 a school bought a new photocopy machine
for R180 000
• The value of the photocopy machine decreases by 25% annually on the
reducing balance method.
• When the book value of the photocopy machine is R52 145, the school will
replace the photocopy machine.
3.5.1.1 Calculate the book value of the photocopy machine on the 1st day of (3)
January 2021.

3.5.1.2 At the beginning of which year will the school have to replace the photocopy (3)
machine.

3.5.1.3 The cost of a similar photocopy machine will be R450 000 at the beginning of
2024.The school will use the R52 145 that it will receive from the sale of the old
photocopy machine to cover some of the costs of replacing the photocopy
machine. The school set up a sinking fund to cover the balance. The fund pays
interest at 7.5% per annum ,compounded quarterly .The first deposit was made
on the 1st April 2019 and every three months thereafter until 1st January
2024.Calculate the amount that should be deposited every three months to have
enough money to replace the photocopy machine on 1st January 2020

(4)

88
POSSIBLE SOLUTION
3.2.1 A = P(1 + i)n ü correct formula
ü substitution
2 x = x(1 + 0.08
2 )
2n

2 = (1.04)2 n
ü introduction of log
2n = log1.04 2
2n = 17.67...
\ n = 8.836....
» 8.84 years ü answer
(4)
3.2.2 Loan amount
= 100
90
´ 450000 90
ü ´ 450000
= 405000 100
ü answer
(2)
3.2.3 1+ i eff
= (1 + )
im m
m
ü correct formula
1+ i eff
= (1 + 0.08
12 )
12
ü substitution
1 + i eff = 1.0829995681
\ i eff = 0.08299950681 ü i = 0.829....
\i eff
= 8.30%
ü conclusion
¹ 8.6% Not correct
(4)
3.2.4 Given data
n = 6 ´12 = 72; i = 0.095
12 ; Pv = 405000
x=?
ü correct formula
x é1 - (1 + i ) ù
-n

Pv = ë û
i
é æ 0.095 ö-72 ù
x ê1 - ç1 + ÷ ú
ê è
ë 12 ø ûú üü correct subst.
405000 =
0.095
12
x = R7401.25 ü answer
(4)

89
3.2.5 Given data
x = 8000; pv = 405000, i = 0.095
12 ; n = ?

x é1 - (1 + i ) ù
-n

Pv = ë û
ü correct formula
i
é æ 0.095 ö-12 n ù
8000 ê1 - ç1 + ÷ ú
êë è 12 ø úû
405000 =
0.095
12
0.095 é æ 0.095 ö®-12 n ù ü correct subst.
405000 ´ = 8000 ê1 - ç1 + ÷ ú
12 ëê è 12 ø ûú
-12 n
æ 0.095 ö 513
ç1 + ÷ = 1-
è 12 ø 1280 ü simplification
-12 n
æ 0.095 ö 767
ç1 + ÷ =
è 12 ø 1280
767
-12n = logæ 0.095 ö
ç1+ ÷ 1280
è 12 ø
-12n = -64.94565055
n = 5, 41years
ü introduction of log

ü answer
(5)
3.3 Possible answers
3.3.1 Given data
p = 12000; n = 12; i = 100
8
= 0.08; A = ?
A = P(1 + i)n
æ 8 ö
12
ü correct subst.
= 2000 ç1 + ÷
è 100 ø ü answer
= R30218.04 (2)
3.3.2 Final gain
= R30218.04 - 12000
= R18128.04 ü answer
(1)
3.3.3 x é1 - (1 + i ) ù
-n

Pv = ë û ü correct formula
i

üü correct subst.

90
 é æ 0.085 ö-240 ù
x ê1 - ç1 + ÷ ú ü answer
ê è
ë 12 ø ûú (4)
2000000 =
0.085
12
x = R17356.46
3.3.4 Outsanding balance

= A - FV
x é(1 + i ) - 1ù
n

= P(1 + i ) -
n ë û
i
éæ 0.085 ö12 ù
12
17356.46 êç1 + ÷ ú
æ 0.085 ö êè
ë 12 ø ûú ü correct subst.
= 2000000 ç1 + ÷ -
è 12 ø 0.085
12
= 2176781.812 - 2666910.102 ü ü simplification
= R 490128.29 ü ü answer
(3)
3.3.5 Capital redeemed
= 2000000 - 490128.29
= 1509871.71 ü answer
Interest charged
= R 4165550.40 - 1509871.71
üü final answer
= R 2665678.69
(3)
3.4 Possible solution C
3.4.1 A = P(1 + i)n ü Correct formula
ü subst.
= 3000000(1 + 0.005)4 ü
ü answer
= R3646518.75 ü
(3)
3.4.2 éé 3´12
ù éæ 0.065 ö2´2 ùù
æ 0.055 ö
A = ê ê6000 ç1 + ÷ + 2000 ú ê ç 1 + ÷ + 1500 úú ´ 0.055
êë êë è 12 ø úû êëè 2 ø úû úû ü i = & n = 36
12
éæ 0.065 ö 2´2 æ 0.06 ö1´52 ù
êç 1 + ÷ ç1 + ÷ ú 0.065
2 52 ü i= & n=4
ëê è ø è ø ûú 2
=R14253.70
OR 0.06
ü i=
2
ü subst.
3´12
æ 0.055 ö
6000 ç1 + ÷ + 2000
è 12 ø

91
 ü subst.
éæ 0.065 ö 2´2 ù
êç 1 + ÷ + 1500 ú
êëè 2 ø úû

ü R14253.70
STEP 1 (6)
n´12
æ i ö
A = P ç1 + ÷
è 12 ø
3´12
æ 0.055 ö
= 6000 ç1 + ÷
è 12 ø æ 0.055 ö
3´12

ü 6000 ç 1 + ÷
= R 7073.691615 è 12 ø
STEP 2 ü answer

7073.691615 + 2000 = 9073.691615

2´2
æ 0.065 ö
A = 9073.691615 ç1 + ÷ ü 9073.691615(1+ 0.065
)
è 2 ø 2

=R10312.0321 2´2
STEP 3
10312.0321+1500 =R11812.0321 ü answer
2´2
æ 0.065 ö
A = 11812.0321ç1 + ÷
è 2 ø
A = R13424.09014
ü R13 424.09014
STEP 4
1´52
A = 13424.09014(1 + 0.06
52 )

A = R14253.70
ü final answer
(6)
3.4.3 é æ 0.08 ö
5´12
ù æ 0.08 ö1´12 æ 0.065 ö2´4 ü
A = ê 25000 ç1 + ÷ - 7000 ú ç1 + ÷ ç1 + ÷ ü
ëê è 12 ø ûú è 12 ø è 4 ø
ü
= R37265.14
ü
OR
STEP 1
n´12
æ i ö
A = P ç1 + ÷
è 12 ø
5´12
æ 0.08 ö
= 25000 ç1 + ÷
è 12 ø ü R37246.14271
=R37246.14271
STEP 2
37246.14271 - 7000 = R30246.14271
1´12
ü answer
æ 0.08 ö
A = 30246.14271ç1 + ÷
è 12 ø ü subst.
= 32756.55764 ü final answer
STEP 3 (4)

92
 2´4
A = 32756.55764(1 + 0.065
4 )
= R37265.14

3.4.4
x é1 - (1 + i ) ù
-n ü correct formula

Pv = ë ûü
i
é æ 0.08 ö- n ù ü subst.
50000 ê1 - ç1 + ÷ ú
êë è 12 ø úû
5000000 = ü ü simplification
0.08
12
0.08 ü simplification
5000000 ´
12 = éê1 - æ1 + 0.08 ö ùú ü
-n

ç ÷
50000 êë è 12 ø úû
ü introduce log
-n
æ 0.08 ö 2
ç1 + ÷ = 1- ü
è 12 ø 3
-n
ü n = 165
æ 0.08 ö 1
ç1 + ÷ =
è 12 ø 3
1
-n = log æ 0.08 ö
ü
ç1+
è 12 ø
÷ 3
- n = -165.3405411
\ n = 165.340....
n = 165 withdrawals
3.5 Possible answers D

3.5.1 ü correct formula

A = P(1 - i)n
ü subst.

= 180000(1 - 0.25) 2
ü ü answer
(3)
= R101250 ü
3.5.2 A = P(1 - i)n
ü correct formula
ü subst.
52145 = 180000(1 - 0.25)n ü
52145 ü introduction of log
= (0.75)n
180000
ü n=4
n = log 52145 0.75ü
180000 (4)

n = 4ü
The photocopy machine will be replaced at the beginning of 2024
3.5.3 R180000 - R52145 = R127855 ü R127855
x é(1 + i ) - 1ù
n

Fv = ë û ü correct formula
i

93
 éæ 0.075 ö 4´4 ù
x êç 1 + ÷ - 1ú ü subst.
êëè 4 ø úû ü
127855 =
0.075
4
76713 ü answer.
x= ÷ 18.45941 (4)
32
x = R129.87 ü

Glossary

1.1 Profit
Profit can be defined as the monetary gain made from a transaction. In consumer
arithmetic, a profit is made if the selling price of a product is greater than the cost price
(the price at which the product was bought) of the product.

1.2 Percentages (%)

Percentage is a representation of a fraction of the whole sample.
æ x ö
A percentage expresses a part of 100 ç e.g. x% = ).
è 100 ÷ø
1.3 Percentage profit
The percentage profit made from the transaction is found by using the formula:

1.4 Loss
A loss is made from a transaction if the selling price of a product is less than the cost
price.
Therefore, Loss = Cost price – Selling price

1.5 Percentage loss

The percentage loss made from the transaction is found by using the formula:

1.6 Deposits
A sum of money paid up front before a loan is granted.

1.7 Investment
Money you put in the bank in the hope that it will grow.

1.8 Unit Trust

Shares

1.9 Annual compound growth rate

The interest rate per year

1.10 Depreciation
The decrease in value of an asset over a period of time.
When equipment loses value over time, we say that the equipment is depreciating in
value. For example, the moment a new car is driven out of the garage/dealership, its
value depreciates substantially. Obviously, due to wear and tear, the car will lose its
value over time.

94
1.11 Simple decrease or (Straight line) depreciation
Simple decrease is also known as straight line decrease
This is depreciation based on the original value and never changes. i.e., the amount by
which the value of an asset decreases every year is a constant percentage of the
original value.
With linear depreciation, equipment is depreciated by a percentage of its original value.
It can be represented by a “linear” function.
It works in the same way as simple interest, but the value decreases rather than
increases as with simple interest.
A = P (1 - in ) where,
A = end amount, P = initial amount, n = number of periods of the decrease, e.g., number
of years and I = rate of decrease divided by 100;

1.12 Inflation
Inflation is the steady compounded increase in prices over time throughout the
economy.
The effect of inflation is to erode the buying power of money over time.
The rate of increase worked out by compound interest annually;

1.13 Hire Purchase Agreements

A hire-purchase agreement (HP) is a short-term loan.

1.14 Per annum

Annually

1.15 Trade in
The money you are granted after depreciation

1.16 Interest
Interest is the fee paid by a borrower to a lender for the use of borrowed money; the fee
is usually expressed as an annual percentage of the amount borrowed.

1.17 Simple Interest

Simple interest describes situations in which money is borrowed or invested for a period
of time and interest is calculated once only and paid at the end of the period.

1.18 Compound interest

Compound interest is used to describe situations in which money is borrowed or
invested for a period of time and interest is calculated on the balance at intervals
throughout the period and added to the balance.

95
1.19 Nominal interest rate
A nominal rate is quoted as an annual rate, without taking into consideration the effect
of different compounding periods, which are shorter than the annual period.

1.20 Effective Rate

Effective annual interest rates are equivalent annual rates that yield the same accumulated
amount as rates with different compounding periods (monthly, quarterly, half-yearly, daily).

1.21 Annuities
The term “Annuity” is used in Financial Mathematics to refer to any terminating
sequence of regular fixed payments over a specified period of time. If payments are
not regular (irregular) periods, we are not working with an annuity.

1.22 Present Value Annuity

“Present value annuity” is a loan.
1.23 3.5.1.3 Future Value Annuity
“Future value annuity” is a savings plan for the future.
period;

1.24 Loan
Loan is when money is borrowed usually from an institution and repaid over usually a
fixed interval in regular instalments;

1.25 Deferred Annuity

In many situations, the repayment of a loan begins three months after the granting of
the loan has been made. However, circumstances arise where the repayment of the
loan is deferred for an agreement of time. Then you would have to add three months
interest on the loan amount to the principal amount.

1.26 Scrap (Depreciated) Value

The value after depreciation.

1.27 Book Value

It is the value of equipment at a particular time after depreciation has been taken into
account.

1.28 Sinking Fund

A Sinking Fund is an investment that is made in the form of regular payment for the
express purpose of meeting an expected cost,

1.29 Laws
The interest period must be same as the repayment intervals. That is, if the interest is
quoted as quarterly, and the repayments of investments are monthly, the interest must
be converted to a monthly interest rate.

1.30 Bond repayment

A bond repayment is when you have borrowed some money (to buy a house or
building) at a given interest rate and you then make regular payments to pay off the

96
 original amount of money borrowed as well as any interest that has arisen. (The bond
is
The term amortization is also applied to the situation where a regular payment is
made to pay off a loan with interest. The loan is then said to be amortized.

3. Study and Examination Tips

• Learn the correct use of calculators in order to prevent step by step answers.
• Rounding should be correct to two decimal places.
• Re-read with understanding should be practice with limited given to avoid
generalization.
• Encourage learners to use exponential laws and understand how to make the
subject of the formula, which involves previous grades, in order to avoid using the
incorrect formula.
• Basic algebraic rules should be appropriately taught.
• Correct interpretation of financial language need to be taken into consideration.
• Teachers should use the correct language/concepts in class and in assessment.
- Use a wide of resources to enhance the skills and knowledge in the classroom.

- NB: Please read your question in the examination attentively before answering them.

97
Reference

• Mathematics CAPS document

• Mathematics Examination Guideline

• Previous NSC and Preliminary Examination papers 2016 -2020

• Classroom Mathematics Grade 10 – 12 (Madeline Trollope, et al. Pearson South

African (Pty) Ltd, 2012

• Maths Handbook and Study Guides – Grade 12 by Kelvin Smith, Berlut Books, 2014

• Mind Action Series Grade 10 – 12, J.Basson , MD Phillips & C. Botha.2013

• Anglo American South Africa Education Programme Sponsored by Anglo American

Units: Coal SA, De Beers, Cumba iron ore, Anglo American Platinum ,as well as
SIOC community development trust.

• Clever Keeping Maths Simple (2013): J Airel, L Du Tiot, I Hannison, C Van Duyn and
J Van Duyn, 2013 . Macmillan South Africa (PTY) Ltd 2013

• Platinum Mathematics Grade 12. Pearson

98
Acknowledgement
The Department of Basic Education (DBE) gratefully acknowledges the following officials for giving
up their valuable time and families and for contributing their knowledge and expertise to develop
this resource booklet for the children of our country, under very stringent conditions of COVID-19:

Writers: Mrs Nontobeko Gabelana, Mr Tshokolo Mphahama, Ms Thandi Mgwenya, Mrs

Nomathamsanqa Princess Joy Khala, Mr Eric Makgubje Maserumule, Mr Avhafarei Edward
Thavhanyedza and Mrs Thavha Hilda Mudau.

DBE Subject Specialist: Mr Leonard Gumani Mudau

The development of the Study Guide was managed and coordinated by

Ms Cheryl Weston and Dr Sandy Malapile.

99
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