Financial Mathematics Course FIN 118 Unit Course 1 Number Unit Linear Equations Quadratic Equations Unit Subject

Al-Imam Muhammad Ibn Saud Islamic University
College of Economics and Administration Sciences

Department of Finance and Investment
Financial Mathematics Course
FIN 118 Unit course
1 Number Unit
Linear Equations
Quadratic Equations
Unit Subject
Dr. Lotfi Ben Jedidia
Dr. Imed Medhioub

2
1. Linear Equations in One Variable
Formulae
Solving a Linear Equation in One Variable
Applications

2. Quadratic Equations in One Variable
Formulae
Solving a quadratic Equation in One Variable
Applications

We will see in this unit
Learning Outcomes

At the end of this chapter, you should be able to:

1. Understand what is meant by linear equation and
quadratic equation

2. Understand how to solve linear and quadratic
linear equations.

3. Solve equations for real world situations in order
to solve problems, especially economic and financial.

3
Definition:

Any equation written in the form

Is said a linear equation where A, B and C are
fixed numbers and

Linear equation

x 5 = 16
2y + 4 = 12
5n - 4 = 6
z/2 6 = 4

4
C B Ax = +
0 = A
Examples
Linear equation

Two Steps for Solving linear Equations

Step1- Solve for any Addition or Subtraction on
the variable side of equation by undoing the
operation from both sides of the equation.

Step2- Solve any Multiplication or Division from
variable side of equation by undoing the
operation from both sides of the equation.

5
Linear equation

Example : Solve 4x 5 = 15
4x 5 = 15
+5 +5 (Add 5 to both sides)
4x = 20 (Simplify)
4 4 (Divide both sides by 4)
x = 5 (Simplify)

Try the above Examples:
x 5 = 16 ; 2y + 4 = 12 ; 5n - 4 = 6 ; z/2 6 = 4
solutions: x = ; y = ; n = ; z =

6
Linear equation

Time to Review!

Make sure your equation is in the form Ax + B = C
Keep the equation balanced.
Use opposite operations to undo
Follow the rules:
1. Undo Addition or Subtraction
2. Undo Multiplication or Division

Thats All for linear equation !

7
Any equation written in the form

Is said a quadratic equation where A, B and C are
fixed numbers and

0 = A
0
2
= + + C Bx Ax
0 1 4
2
= + + x x
0 1 4 4
2
= + x x
0 20 8
2
= + x x
Definition:
Examples
8
Quadratic equation

How to solve quadratic equations ?
Quadratic equations can be solved using Discriminant method
:
Step1 : Express the equation in a general form

Step2 : Calculate the discriminant:
Step 3: Give solution
Case1: no real roots
Case2: only one real root
Case3: two distinct real roots
and

9
0
2
= + + C Bx Ax
AC B 4
2
= A
A
B
r
2
=
A
B
r
2
1
A
=
A
B
r
2
2
A +
=
0 < A
0 = A
0 > A
Quadratic equation

Example1: Solve the quadratic equation if possible

Step1 : A=4, B=1 and C=1

Step2 :

Step 3: no real roots
10
0 1 4
2
= + + x x
( ) ( )( ) 15 1 4 4 1 4
2 2
= = = A AC B
0 15 < = A
Quadratic equation

11
Step1 : A=4, B=-4 and C=1

Step2 :

Step 3: only one real root

!!! We can rewrite the quadratic equation

0 1 4 4
2
= + x x
0 1 4 4 ) 4 ( 4
2 2
= = = A AC B
0 = A
2
1
4 2
4
2
=
=
A
B
r
0
2
1
2
1
4 1 4 4
2 2
2
=
|
.
|
\
|
=
|
.
|
\
|
= + x x x x
Example2: Solve the quadratic equation
Quadratic equation

12

Step1 : A=1, B=8 and C=-20
Step2 :
Step 3: two distinct real roots


0 20 8
2
= + x x
( ) ( ) 144 20 1 4 ) 8 ( 4
2 2
= = = A AC B
0 144 > = A
and 10
2
20
1 2
144 8
2
1
=

=
A
=
A
B
r 2
2
4
1 2
144 8
2
2
= =
+
=
A +
=
A
B
r
( )( ) 0 2 10 20 8
2
= + = + x x x x
Example3: Solve the quadratic equation
Quadratic equation

13

Step1 : rewrite the equation in general form

A= , B= and C=

Step2 :

Step 3:


3 4
2
= x x
Example: Solve the quadratic equation
Quadratic equation

Time to Review !

Thats All for quadratic equation !

14
Solutions

Value of = B
2
-4AC

No real solutions

= B
2
-4AC < 0
One real solution

= B
2
-4AC = 0

Two real solutions
= B
2
-4AC > 0
Quadratic equation

we will see in the next unit
15
1. What is meant by a function?
2. How to determine Domain and Range?
3. The properties of linear function
4. How to plot a linear function?
5. The properties of quadratic function
6. How to plot a quadratic function?

Remind these general rules

16
( )
2 2 2
2 b ab a b a + + = +
( )
2 2 2
2 b ab a b a + =

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Al-Imam Muhammad Ibn Saud Islamic University

College of Economics and Administration Sciences

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