GENERAL MATHEMATICS

also be equal, or if the exponents are

equal, the bases must also be equal.

EXPONENTIAL FUNCTIONS SOLVING EXPONENTIAL

- An exponential function is defined by INEQUALITY
the rule: - An inequality in one variable
x
f ( x)=a where a>0 , a ≠ 1,∧x is having a variable in the
any real number . exponent is referred to as
exponential inequality.
- The term exponential is often
associated with any phenomenon
Rules for Solving Inequalities
characterised by rapid growth with
alarming consequences. a.) If the same real number is added to
or subtracted from both sides of
- It does not matter what the value inequality, the sense of the inequality is
of x is because the value of f (x) will not changed.
always be positive. Moreover, the b.) If both sides of an inequality are
function is also defined for irrational multiplied by or divided by the same
values of x . Hence, the range of positive real number, the sense of the
exponential function is the set of all inequality is not changed.
positive real numbers.
c.) If both sides of an inequality are
multiplied by or divided by the same
Laws of Exponents negative real number, the sense of the
- For any numbers 𝑎 𝑎𝑛𝑑 𝑏, and any inequality is changed.
nonzero real numbers 𝑚 𝑎𝑛𝑑 𝑛,
- The principle used in the Property of
a.) 𝑎 m an=am+ n Equality for Exponential Equation,
together with the Rules in Solving
b.) ¿ Inequality, is extended in solving
exponential inequality.
c.) ¿
SOLVING PROBLEMS
d.) a m ⁄ an =am −n , a ≠ 0 INVOLVING EXPONENTIAL
FUNCTIONS, EQUATIONS,
e.) ¿ AND INEQUALITIES
f.) a 0=1 - The population after n years is
P¿
- If decreasing, P ¿
SOLVING EXPONENTIAL EQUALITY
LOGARITHMIC FUNCTION
- Equating Exponents property states
that in an exponential equation, if the - A function defined by y=log ⌄bx , if
bases are equal, the exponents must and only if x=b y for all positive real
numbers x∧b , and b ≠ 1.
 SOLVING LOGARITHMIC 2nd Law of Logarithms: Logarithm
EQUATIONS of Products
- A logarithmic equation in one variable - The logarithm of the product of
is an equation involving logarithms of positive real numbers is equal
the form 𝒍𝒐𝒈𝒃𝑵=𝒙, where b is a to the sum of the logarithms of
positive real number and 𝒃≠𝟏. the factors to the given base.

- In symbols,
Exponential equation Logarithmic equation log ⌄ MN =log ⌄ b M + log ⌄b N .

log ⌄ 2 4=2 3rd Law of Logarithms: Logarithm

22=4
of Quotients
3
1 0 =1,000 log ⌄ 10 1000=3 - The logarithm of the quotient
of two positive real numbers is
25 1/ 2=5 log ⌄ 25 5=1/ 2 equal to the logarithm of the
dividend minus the logarithm
x
4 =16 log ⌄ 4 16=x of the divisor.

- In symbols,
THE LOGARITHM OF A NUMBER log ⌄ b M / N=log ⌄ b M −log ⌄b N
- The logarithm x of a number N to the 4th Law of Logarithms: Logarithm
base b is the exponent of the power to of Power
which b is raised to obtain N. In
symbols, 𝒍𝒐𝒈𝒃𝑵=𝒙 if and only if 𝒃𝒙=𝑵. - The logarithm of the power of
a positive real number is equal
to the exponent time the
Property of Equality for Logarithmic logarithm of the number to the
Equations given base.
- Let 𝒃 be a positive real number and - In symbols,
𝒃≠𝟏. Then, 𝒍𝒐𝒈𝒃𝑴=𝒍𝒐𝒈𝒃𝑵 if and only log ⌄ b M a=alog ⌄ b M
if 𝑴=𝑵.

LAWS OF LOGARITHM

1st Law of Logarithms

- For any base b,

a.) log ⌄ b b=1 SIMPLE INTEREST

b.) log ⌄ b 1=0 - A debtor pays the bank an amount
which is more than the amount they
c.) log ⌄ b x =x ,(b>0 , b ≠ 0) borrowed. An investor may withdraw
from the bank more than the
amount deposited. This additional
Illustrative Examples: sum is called INTEREST.
a.) log ⌄ 3 3=1
b.) log ⌄ 5 1=0 - is the interest charged on the
principal alone for the entire duration
c.) log ⌄ 5 53=3
or period t of the loan or investment,
at a particular rate r. After the term
of the loan or investment, the
maturity value or future value F is
 computed by getting the sum of the f - future value ( or maturity value)
principal and the interest due.
Note: If the given time is in months, it
Definition of terms: can be converted to year(s) by using
the formula: t=number of months/12 .
Lender or Creditor – person (or institution)
who invests the money or makes the funds COMPOUND INTEREST
available.
- is usually used by banks in
Borrower or Debtor – person (or institution) calculating interest for long
who owes the money or avails of the term investments and loans
funds from the lender. such as savings accounts and
time deposits.
Origin or Loan Date – date on which money
is received by the borrower. - an interest resulting from
the periodic addition of
Repayment date or Maturity Date – date on simple interest to the
which the money borrowed or loaned is to be principal amount or simply
completely repaid. the difference between the
Time or Term (t) – amount of time in years compound amount and the
the money is borrowed or invested; length of original principal.
time between the origin and maturity dates.

Principal or Present Value (P) – amount of

money borrowed or invested on the origin
date.

Rate of Interest or Simply Rate (r) – annual

rate, usually in percent, charged by the
lender, or rate of increase of the investment. Definition of terms:

Interest (I) – amount paid or earned for the Compound amount (F) – also called
use of money. maturity value, it is an accumulated amount
obtained by adding the principal and the
Maturity Value or Future Value (F) – amount compound interest.
after t years that the lender receives from the
borrower on the maturity date; equal to the Conversion period (m) – the number of
sum of principal and the interest earned. times in a year the interest will be
compounded.
Formulas: The following are the common conversion
periods in a year:
● I ⌄ s=Prt
● F=P+ I ⌄ s ,∨F=P+ Prt annually :m=1
semi-annually :m=2
¿ F=P(1+ Prt ) quarterly :m=4
monthly : m = 12
● P=I ⌄ s /rt∨P=F−I ⌄ s
● t=I ⌄ s/ Pr Number of conversion periods (n) – the
● r =I ⌄ s / Pt total number of times interest is calculated
for the entire term of the investment or loan.
Where..
Annual interest rate or nominal rate (r)
I⌄s - simple interest – the stated rate of interest per year.
P - principal Periodic rate (i) – the interest rate per
conversion period.
r - rate of interest or simply rate
Present value of F (P) – this is the
t - time ( in year) principal P, that will accumulate to F if
there is an interest at periodic rate i for n BONDS
conversion periods.
- It refers to the interest-bearing
STOCKS security which promises to pay
(a.) a stated amount of money
- It refers to the share in the ownership on the maturity date, and (b.)
of a company. regular interest payments
called coupon.
- It can be bought or sold at its current
price called market value. - It is the debt of a firm.
Terms to remember: - It is a certificate which proves
that a company or corporation
Dividend - It refers to the share in the borrowed money from a
company’s profit. certain group of individuals or
Dividend per share - It is the ratio of the investors for a definite period
dividend to the number of shares. of time at a fixed rate.

Stock Market - A place where a stock can be -

bought or sold. The stock market in the - Unlike stockholders, bondholders are lenders
Philippines is governed by the Philippine to the institution which maybe a government
Stock Exchange (PSE). or private company.
Market Value - It refers to the current price of Terms to remember:
a stock at which it can be sold.
Coupon - It refers to the periodic interest
Stock Yield Ratio - It refers to the ratio of the payment that the bondholder receives during
annual dividend per share and the market the time between purchase date and maturity
value per share. It is also called the current date; usually received semi-annually.
stock yield.
Coupon Rate - It refers to the rate per
Par Value - It refers to the per share amount coupon payment period; denoted by r.
as stated on the company certificate. Unlike
market value, it is determined by the Price of a Bond - The price of the bond at a
company and remains stable over time. purchase time; denoted by P.
Stakeholders - It refers to the owners of the Par Value or Face Value - The amount
firm. payable on the maturity date; denoted by F.
Stock Valuation - It is important in order to If P = F, the bond is purchased at par.
compare the price of the stock with respect to
the market. If P < F, the bond is purchased at a
discount.
Types of stocks:
If P > F, the bond is purchased at
Common Stocks - represents the owner’s premium.
fund, as equity shareholders jointly own the
company. Term (or tenor) of a Bond - It refers to the
fixed period of time (in years) at which the
Preferred Stocks - Implies a class of bond is redeemable as stated in the bond
security, which do not carry voting rights but certificate; number of years from the time of
have a higher claim on the company’s assets purchase to maturity date.
and incomes.
Fair Price of a Bond - It refers to the present
Both will receive dividends or share of value of all cash inflows to the bondholder.
earnings of the company.