GEC 05: Mathematics in the Modern World 1st Semester 2020-21

1|South ern Luzon State University

GEC 05: Mathematics in the Modern World 1st Semester 2020-21

DISCLAIMER

These unpolished learning modules were compiled and prepared for personal use of students in
GEC 05: Mathematics in the Modern World of Southern Luzon State University (SLSU)
ONLY, and not as a reference material. Unauthorized distribution of the modules is not allowed.
The topics included are given in summary form and does not claim to be complete. The
instructors do not claim ownership of all the contents since it was taken from several resources
including books, journals, and the internet.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Table of Contents

Module 1: Mathematics in our World ........................................................................................................................... 4

I. Understanding Mathematics ............................................................................................................................... 5
II. Math, Nature, and Arts ....................................................................................................................................... 10
III. Fibonacci Sequence, Proportion, and Golden Ratio ........................................................................... 15
Module 2: Mathematical Language and Symbols ................................................................................................. 26
I. Characteristics of Mathematical Language ................................................................................................ 26
II. Expressions vs Sentences ................................................................................................................................. 27
III. Conventions in Mathematical Language .................................................................................................. 29
IV. Sets, Functions, Relations, and Binary Operations ............................................................................. 30
V. Logic ............................................................................................................................................................................ 35
Module 3: Problem Solving and Reasoning............................................................................................................. 42
I. Polya’s Strategy ....................................................................................................................................................... 42
II. Problem Solving Strategies .............................................................................................................................. 45
III. Inductive and Deductive Reasoning .......................................................................................................... 49
IV. Mathematical Problems Involving Patterns ........................................................................................... 53
V. Recreational Problems using Mathematics ............................................................................................ 55
Module 4: Mathematics of Finance.............................................................................................................................. 64
I. Simple and Compound Interest ..................................................................................................................... 64
II. Credit Cards and Consumer Loans............................................................................................................... 71
III. Stocks, Bonds, and Mutual Funds ............................................................................................................... 75
Module 5: Managing and Understanding Data ...................................................................................................... 79
I. Overview on Data Management ...................................................................................................................... 79
II. Understanding Data using Descriptive Statistics…………………………………………………………79
III. Understanding Data using Inferential Statistics…………………………………………………………79

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Module 1
MATHEMATICS IN OUR WORLD

“You do not study mathematics because it helps you build a bridge. You study mathematics
because it is the poetry of the universe. Its beauty transcends mere things.”
-Johnathan David Farley

INTRODUCTION

Mathematics is everywhere. We cannot ignore that math is an essential tool in understanding

nature and the world. It is vital in understanding natural phenomena and human activities as
well. This module will help you discover what mathematics is, where is mathematics, what is it
for and who uses mathematics? Similarly, discovering patterns in nature and the world will be
investigated where balance and harmony are always present in these wonderful creations.
Many people consider mathematics to be a boring and formal science. But any good work in
mathematics always has: Beauty, Simplicity, Structure, Imagination, and Crazy Ideas. This
module is divided into three lessons center to the idea of nature of mathematics.

CORE IDEA

Mathematics is a useful way to think about nature and our world.

(Course Syllabus - Mathematics in the Modern World by CHED, 2016)

LEARNING OUTCOMES

At the end of this module, students should be able to:

Knowledge
1. Argue about the nature of mathematics, what it is, how it is expressed represented and
used;
2. Explain how Fibonacci Sequence are formed and describe properties of the sequence by
using mathematical operations;
3. Articulate the importance of mathematics in one’s life;

Skills
4. Investigate patterns in nature and regularities of the world;
5. Use appropriate technology to research on the nature and application of mathematics;
6. Determine the 𝑛th term of Fibonacci sequence and verify measurements of successive
Fibonacci sequence related to the measure of Golden Ratio.

Values
7. Express appreciation of mathematics as a human endeavor through calculation,
application and inspiration; and
8. Engage oneself in the different activities through flexible learning of the subject.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

DISCUSSION

I. Understanding Mathematics

“The mathematical sciences particularly exhibit order, symmetry, and limitation;

and these are the greatest forms of the beautiful”
-Aristotle

Like almost every subject, mathematics is easy or as difficult as we choose to perceived it. The
usual pattern among students who got stuck in their journey to math success is that they looked
into the patterns of solutions made by their teacher not knowingly after making it on their own
they will get stuck with the problems they work on. In this module, you will not only do the
math but you will also experience what mathematics is. You will learn mathematical ideas
through listening, reading, and visualizing the concepts. You are here to experience suggested
activities rather than just sit on the sideline as onlooker. Remember that “Mathematics is NOT a
Spectator Sport.

What is Mathematics?

Let us take a look on the diagram below.

Anybody would agree that math is the study of

tool on numbers and operations, a body of formulas and
an art problem
rules for solving equations, a set of tools to the
solving
questions of how many or how much. Others
view math as an exact science which uses logical
Math a reasoning to be able to draw sound conclusions.
is language Mathematics has also been defined as a language
with structure, form, vocabulary and grammar. It
a process
is also an art which studies patterns for aesthetic
of
study of
patterns
purposes or for predictive purposes. It plays a
thinking vital role in almost all fields: engineering, health
sciences, education, economics and finance, social
and physical sciences, environmental sciences
and even in the field of music and arts.

One definition that we will use in this module is that:

Mathematics is a formal system of thought for recognizing, classifying, and

exploiting patterns. - Ian Stewart

This is explained in the book of Ian Stewart (1995) Nature’s Numbers, that mathematics is a
systematic way of digging out the rules and structures that lie behind some observed pattern or
regularity, and using this rules and structures to explain what is going on. He also described that
mathematics reveals the simplicities of nature, and permits us to generalize from simple
examples to the complexities of the real world.

Most of the concepts that I will discuss in this module focuses on mathematics as an art and a
study of patterns. Why? The connections between art and mathematics go deep in the history of
mankind. It is evident in the different architectural designs, music, painting, and sculpture.
Nature also plays a part on recognizing beauty of nature’s mathematical patterns.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Where is Mathematics?

Observe the following illustrations.

A regular hexagon has 6 sides of equal length, and this shape is

seen again and again in the world around us. The most common
example of nature using hexagons is in a bee hive. This is done to
maximize the use of space for food storage. Honeycombs structure
is also an example of wallpaper symmetry. This is where a
pattern is repeated until it covers a plane. A beehive is also
considered as one model for packing efficiently. Why?
http://www.planetdolan.com/15-beautiful-examples-of-mathematics-in-nature/2/

Pinecones have seed pods that arrange in a spiral pattern. They

consist of a pair of spirals, each one twisting upwards in opposing
directions. Why?

Orbs spiders weave a near-perfect circular webs that have near-

equal-distanced radial supports coming out of the middle which
makes easy for them to catch its prey. Why?

We have seen that many of natural creations follow what others might think it is not math. But
we see that these are clues to ponder on. The great secret uncovered by mathematics as Stewart
explained, “Nature’s patterns are not just there to be admired, they are vital clues to the
rules that govern natural processes.”

Occurrences like the repeating interval of day and night, the cycle of the moon, the rising and
falling of tides or the changing of the seasons are clues where mathematics is useful. You might
also wonder how clouds are formed, the changing color of the sky from sunrise to sunset,
formation of rainbows in the horizon. We all think of how beautiful these creations that we fell
in awe whenever we observed them. Why? For those of us who finds numbers difficult to
understand, it means that there is relationship that can be proven not only with numbers but
with series of shapes that appear throughout nature which can be translated into some
observed rules of proportion. Our fascination in observing nature give rise to remarkable
properties of: harmony, regeneration and balance. We would be happy if we could come
upon a clue or a formula that will be useful in unlocking some mysteries of these creations.

Mathematics finds many practical applications in in our daily life. Your interest in gadgets,
games and technologies have employed the use of mathematics. You unknowingly use your
number sense in your transactions that starts with your purchase of the gadgets, to the
instructions on how it will be operated, to your game plan till you discovered the many chances
of winning or losing. It all matters because there is math in all of these doings. In the
communities where we work, events that we do, in the different scientific innovations,
mathematics is there.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Conceptual Understanding

1. Where do you apply the principles of mathematics?

2. Do you need mathematics every day? Why?

What is it for?

Mathematics is a useful way to think about the complexities of nature’s creations. It helps us
unravel the puzzles of nature. Appreciation of patterns brought variety of opportunities to
better understand and explore the world leading us to many significant theories in mathematics
which in turn have been utilized by other discipline. Inventions and discoveries are not possible
without the use of mathematics.

Let me give a few examples of practices where math is used for;

Math and the Human heart

Mathematical models of the heart help in the design and
implementation of artificial valves.

The mystery of how flocks of birds fly in the same direction

without collisions can be explained by mathematical equation.
This also explains how air traffic is handled by our experts.

Math can help solve crimes.

Probability, combinations, graph theory are used by the
investigators to solve crimes.

CC BY-SA-NC

Prime number and internet security.

The study of prime numbers is important for computer security

This Photo by Unknown

What do Mathematicians do?

Mathematics provides us the tools to make sense of the physical/ perceptual world. But also
gives us the facility (and the power) to understand the unseen, the abstract.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Two views
1. Platonism
Mathematical objects are real. Mathematicians discover mathematics.
Math is part of objective reality, it exists out there, independent of human experience.
2. Formalism
Mathematical objects are creations of the mind. Mathematicians create mathematics.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

EXERCISE

True / False. If you think that the statement is correct, write True. Otherwise,
write False.

1. Mathematics is demonstrated only in the language of numbers.

2. Any person can recognize mathematical patterns without mathematical training.
3. Patterns that occur in nature are only for arts appreciation and not for mathematical
explorations.
4. Every phenomenon can be explained by mathematics whether it is social or scientific.
5. Mathematics is not meant to be learned by everyone.

Give a brief answer on the following.

1. Where is mathematics?
2. What role does mathematics play in our world?

Argue whether you agree or disagree on how the following mathematicians/

philosophers view mathematics.

Mathematician/Philosopher Notion on Mathematics Your claim

Albert Einstein (1879-1955) “Do not worry too much about
your difficulties in
mathematics. I can assure you
mine are still greater”
Galileo Galilei (1564-1642) “Mathematics is the language
with which God has written
the universe”
Luca Pacioli (1445-1517) “Without mathematics, there
is no art”

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

II. Math, Nature, and Arts

“If you want to learn about nature, to appreciate nature, it is necessary

to understand the language that she speaks in.”
-Richard Feynman Nobel laureate, Physics

Many of us think of mathematics as numbers, operation, algebra, calculus and the like but we
can also view mathematics as study of patterns. Recognizing patterns feel just natural as
learning 1, 2, 3… or a, b, c …. Though mathematicians use number patterns and equations to
express the ingenuity of their explorations and discoveries, you only need to be imaginative of
how mathematics is exhibited in nature and arts through patterns of form, number, shape and
movement in the world around us.

Mathematics and Nature

Mathematics is not all about numbers. If you want to understand the world, you need to find
patterns, then you need to represent these patterns in the form of symbols, notations or shapes
or numbers, and finally interpret these patterns. We know that patterns in nature are visible
regularities of form, shape, and movement found in the natural world. There is beauty in
appreciating nature’s clues even without mathematical training.

What do you observe? Patterns found in succulents, ferns, and cones are spiral-shaped depicting
maximum efficiency.

Euphorbia esculenta Spiral Aloe (Aloe polyphylla fern tree curl up into spiral shape Variation of Yellow Pine Cones ...
mercurynews.com pinterest.com stock.adobe.com tchester.org
Figure 2.1

Patterns such ocean waves, sand dunes, formation of typhoon and water drop with ripple serve
as clues in the rules that govern water flow.

Figure 2.2

Patterns of spots, stripes and blotches show mathematical regularities in biological growth and
form.

Figure 2.3

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Occurrences like changing of the seasons, phases of the moon, and the constellation are basis of
time and predictions.

Figure 2.4

Mathematics and Arts

We now turn our attention to connections between mathematics and arts. We will explore idea
of mathematics to perspective, symmetry and proportion. People of all ages and culture used
geometrical ideas and patterns in their artwork. Greece which is the center of arts and
mathematics during the ancient times developed strong inclination to these areas because these
are central to their view of the world.

Perspective – Imagine looking along a set of long parallel lines and stretches far into the
distance such as a set of train tracks or a set of telephone lines, or you may put yourself in the
center of a hallway. The lines will appear to your eyes to get closer to each other as you look into
the distance. See the figure below

All lines that are parallel in the real

scene and perpendicular to the canvas
must intersect at the principal
vanishing point.

Vanishing Point - a point at which

receding parallel lines seem to meet
when represented in linear
perspective

Figure 2.5

Leonardo Da Vinci (1452-1519) has great contributions to the science of perspective. Look at
Figure 2.6.

Figure 2.6 The Last Supper shown with several lines that are parallel in the real scene and converge at
the principal vanishing point behind Christ
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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

According to Da Vinci, there are three aspects to perspectivity

1. How the size of the objects seems to diminish according to distance;
2. The manner in which the colors change the farther away they are from the eye;
3. How objects ought to be finished less carefully the farther away they are.

Rules for drawing open up to new possibilities of expression of the art and creativity, where
balance and harmony is used.
Symmetry

Symmetry is a property of an object that remains unchanged under certain operations such as
translation, reflection, and rotation. It is a sense of harmony and balance. The human body is
symmetrical because a vertical line drawn through the head and navel divides the body into two
identical parts. The painting of Last Supper by Da Vinci shows symmetry because the disciples
are grouped in four groups of three, with two groups on either side of Christ which is the central
figure.

Symmetries are integral part of nature and the arts of culture worldwide.

Bilateral symmetry on butterfly

A symmetry in which the left and right sides ( reflection ) of the
organism can be divided into two identical or mirror image of each
other.

Figure 2.7

Rotational symmetry on Starfish

A symmetry around a fixed point and can be classified as either
cyclic or dihedral

Figure 2.8

A B C D
Figure 2.9 Symmetries on Shapes

Figure 2.9c is a five-pointed star with five lines about which it can be flipped ( reflected )
without changing its appearance and because it has five vertices that all look the same, it can
also be rotated by one-fifth of a full circle and it still look the same ( 360 0 / 5 = 720 ) the star has
rotation and reflection symmetries.

Symmetries Found in Philippine Designs

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Figure 2.10 Intrinsic designs and weaving designs

Artistry and abstraction are found in textile products of Filipinos. These are evidences of the
rich cultural heritage of the Philippines.

Figure 2.11 Sample of tattoos in Kalinga one of the many rich cultural practices of how symmetries are
shown.

The above design are concrete evidences not only for the rich cultural heritage but also the
mathematical ingenuity of our ancestors which give rise to the study of ethnomathematics. It is
believed that it can only be configured with strong mathematical proficiency. Surprisingly, these
concepts of designs transcend mathematical concepts of abstract algebra like groups, rings, and
fields.

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EXERCISE

Observe the following patterns found in nature

1. What shapes are predominant in the following figure.

2. In each of the figure, discuss briefly the mathematics behind such patterns.

TRUE/ FALSE
3. The principal vanishing point of the painting is so far away that it cannot be seen in
the painting
4. In drawing a flat desert, one must apply perspectivity.
5. In a painting of train tracks that run perpendicular to the canvas, the principal
vanishing point is the place in the painting where the two rails meet.

Your instructor wants near objects to look nearby and far objects to look far away
in your drawing. Make your own illustration using the concept of perspectivity.

Draw a square. Determine all the rotational and reflection symmetries present in
the figure. Briefly explain your answer.

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III. Fibonacci Sequence, Proportion, and Golden Ratio

Geometry has two great treasures; one is the theorem of Pythagoras; the other the division of line into
extreme and mean ratio. The first we may compare to a measure of gold; the second we may name a
precious jewel
- Johannes Kepler

Proportion is generally used to express the relation of parts to each other or to a whole which is
built upon similarity of two ratios. In the last topic, we studied how mathematics enters through
the idea of symmetry and perspective. In this lesson, we will focus to another major idea
involved in balance and harmony in art and nature: proportion. The Greeks claimed that the
most visually appealing division of the line had the property that the ratio of the length of the
long piece to the length of the short piece is the same as the ratio of the length of the entire line
segment to the length of the long piece. Another connection that we will explore in this module
is the connection of golden ratio and Fibonacci sequence.

Number Patterns

Number patterns are familiar to us since they are among the patterns we first learned at home
and at school. The way we count the natural numbers as 1,2,3,4,5… and skip counting as
2,4,6,8,10… is useful because it helps us to predict the next number in the sequence. Recognizing
number patterns is also an important problem -solving skills.

Let us predict the next number in the sequence 1,4,9,16, _______. Yes, its 25 why? These number-
pattern is a sequence of perfect squares.

Recall how the numbers in Pascal’s triangle are constructed. Discover and discuss at least three
patterns within the Pascal’s triangle. Explore numbers along the diagonal of the Pascal’s
triangle, binomial expansion, or adding shallow diagonals. What have you observed? Discuss it
with your group.

mathmammoth.com

Figure 3.1 Patterns in Pascal's Triangle

Your answer to number patterns found in the shallow diagonals of the Pascal’s triangle is a
number pattern involving Fibonacci numbers. We will discover how seemingly abstract
mathematical concepts plays a very interesting role in the development of natural phenomena.
Fibonacci numbers appear everywhere – in leaves, flower petals, seeds of sunflower, scales of
pineapple, and many others.

1 , 1 , 2 , 3 , 5 , 8 , 13 , 21, ….
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This pattern was popularized in Europe by Leonardo of Pisa

also known as Leonardo Fibonacci. He is one of the most
influential mathematicians of the Middle Ages. His book Liber
Abaci played a role in the adoption of the Arabic decimal
system of counting.

In this book, you will find the famous problem of breeding

rabbits which become instrumental in the study of patterns
and Divine proportion.
The sequence is found by adding the previous two numbers of
the sequence together. It looks like this: 0, 1, 1, 2, 3, 5, 8, 13,
21, 34... And on it goes.

Printerest.com

pinterest.co
Figure3.2 Leonardo of Pisa
m
The Problem

A problem that appears in the third section of Liber Abaci led to the discovery of Fibonacci
sequence:

“A certain man put a pair of rabbits in a place surrounded on all sides by a wall.
How many pairs of rabbits can be produced from that pair in a year if it is
supposed that every month each pair begets a new pair, which from the second
month on becomes productive.”

Solution:
Assume that the rabbits always produced one male and one female offspring such that they:
• Can reproduce once every month
• Can reproduce when they are one month old
• They never die

Month Number of Pairs of rabbit Result

January After one month, the first pair mated but have = 1 pair
not given birth yet.
February After two months, the first pair gave birth to = 2 pairs
another pair
March After 3 months, the 1st pair gave birth to their 1+2= 3 pairs
2nd pair, their first born mated but have not
given birth yet
April After 4 months, the first pair gave birth to 1 + 3+ 1 = 5 pairs
their 3rd pair their first born gave birth to their
first pair
May After 5 months, the 1st pair gave birth to their 1 + 4 + 3 = 8 pairs
4th pair , their first born gave birth to their
second pair,, etc.
… …. …

… … …

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The number of pairs of rabbit after a year is 233. Do you

think the problem is realistic? Why or why not? Explain your
answer.

Following the pattern, 1, 1, 2 ,3 , 5 , 8 … how do we

determine the next value in the sequence

Finding the 𝒏th Term in a Fibonacci Sequence

Example :
If the 16th Fibonacci number is 987, and the 18th Fibonacci is 2584 , determine 17th Fibonacci
number.

Answer: 1597

𝐹18 = 𝐹17 + 𝐹16

𝐹16 = 987 𝐹18 =2584 find 𝐹17 2584 = 𝐹17 + 987
2584 − 987 = 1597

But how can we find any Fibonacci number without enumerating the previous numbers? For
example, how can we find the 25th Fibonacci number without knowing 𝐹24 𝑎𝑛𝑑 𝐹23 ? With the
help of a handheld calculator or Excel we could find 𝐹25 which is 75025. Now let us use bigger
Fibonacci number. Suppose we want to find 𝐹100 ? Fortunately, there is an easier way of
determining the nth Fibonacci number. It is called the Binet’s Formula. Look for this formula
and show that 𝐹25 = 75025

𝜑𝑛 −(1− 𝜑)𝑛 𝜑𝑛
Solution: Binet’s Formula 𝐹𝑛 = =
√5 √5

1.6180339887…25
Let n = 25 so, 𝐹25 = = 75024.999984 approximately 75025 which is the 25th
√5
Fibonacci number.

TRY THESE: Some mathematical properties of Fibonacci numbers

1. Observe the index number of even Fibonacci numbers. Do you notice a pattern?
2. Where are the Fibonacci numbers which are multiples of 3? Of 5?
In these observations, what general rule will you suggest?
3. If you take any three consecutive Fibonacci numbers, the square of the middle
number is always one away from the product of the outer two numbers
𝐹𝑛+1 𝐹𝑛−1 − 𝐹𝑛 2 = (−1)2

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We can find many instances of mathematical order involving the Fibonacci numbers in nature.
Some of these patterns which appear in different natural creations can be modelled
mathematically. So, let us start looking for the patterns.

Fibonacci in Flower and Leaf Arrangement

The Fibonacci sequence plays a vital role in phyllotaxis, which studies the arrangement of
leaves, branches, flowers or seeds in plants, with the main aim of highlighting the existence of
regular patterns.

In the sunflower, individual flowers are

arranged along curved lines which rotate
clockwise and counterclockwise.
Credits: The Fibonacci sequence in
phyllotaxis – Laura Resta (Degree Thesis
in biomathematics)

Arrangement of leaves on a stem.

Credits: The Fibonacci sequence in
phyllotaxis – Laura Resta (Degree Thesis
in biomathematics)

Iris, 3 petals; parnassia, 5 petals; cosmea,

8 petals

jIt is possible to find the Fibonacci sequence in nature given by the number of petals of flowers.
Most have three (like lilies and irises), five (parnassia, rose hips) or eight (cosmea), 13 (some
daisies), 21 (chicory), 34, 55 or 89 (Asteraceae)

Fibonacci in Fruits

If we cut banana and apple then Fibonacci appears in the number of sections 3 for banana and 5
for apple. On the other hand, the number of hexagonal nubs arranged in spirals for pineapple
also exhibit Fibonacci number. Similar case is observed on spirals of pine cones which contain
spirals from the center with arms 5 arms and 8 arms or 8 arms and 13 arms.

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Fibonacci Sequence and the Golden Ratio

Let us visualize these numbers using square tiles. Starting

with one square tile then another, together they form a 1 x 2
rectangle. On top of this rectangle, we construct a 2 x 2
square, beneath that a 5 x 5 square. If we continue to do this
and connect opposing diagonals continuously it will reveal a
fibonacci spiral. This spiral could be seen a lot in nature,
architecture , arts , human body and beyond.

If we are going to divide the two dimensions 8 and 13, notice that its just like dividing two
consecutive Fibonacci numbers. Doing this to the highest possible pair of Fibonacci numbers
will give us the GOLDEN RATIO. The golden ratio is approximately equal to 1.618 represented
by the Greek letter Phi ( 𝜑 ). Scholars during the time of Pythagoras asked the following
question: How can a line segment be divided into two pieces that have the most appeal and
balance?

𝑎 𝑎+𝑏
= = 𝜑 = 1.618
𝑏 𝑎

Show your derivation of this value.

The golden ratio is a term used to describe the relationship between two numbers. If you have a
number a and a lower number b then the two are in the golden ratio if the quotient of these
numbers somehow near to 1.618. So basically, any ratio which comes close to this value is
claimed to be perfectly proportioned or it is the most visually pleasing to the eye.

The Golden ratio is sometimes coined as the Divine Proportion, Golden Mean, Golden
Rectangle, Golden Spiral and Golden Section. The appearance of this ratio in music, in
patterns of human behavior, even in the proportion of the human body, all point to its
universality as a principle of good structure and design.

Used in art, the golden ratio is the most mysterious of all compositional strategies. We know
that by creating images based on this rectangle our art will be more likely to appeal to the
human eye, but we don’t know why. Much of the works of Renaissance period are central
to the idea of this ratio as illustrated in the following figures.

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Do you think that the golden rectangle is visually more pleasing than the other rectangles?
Explain.

Since the discovery of the golden ratio, many individuals incorporate their work to this ratio.
The works of Leonardo Da Vinci, Botticelli, Michelangelo employed the same technique. In
music, evidences were found on the work of Debussy, Mozart, Beethoven, Bach, and Chopin. Try
to listen to musical piece that golden ratio is being displayed. Is it pleasing to our ears?

Write the first 12 Fibonacci numbers, we have already identified this with our works on the
breeding of the rabbits.

1 2 3 4 5 6 7 8 9 10 11 12
1 1 2 3 5 8 13 21 34 55 89 144

𝑙𝑎𝑟𝑔𝑒𝑟 𝑣𝑎𝑙𝑢𝑒 1 2 3 5 8 13 21 34 55 89 144

Now take the ratio of and determine its decimal
𝑠𝑚𝑎𝑙𝑙𝑒𝑟 𝑣𝑎𝑙𝑢𝑒 1 1 2 3 5 8 13 21 34 55 89
approximation . What do you notice?

𝑠𝑚𝑎𝑙𝑙𝑒𝑟 𝑣𝑎𝑙𝑢𝑒 1 1 2 3 5 89
Do the same with the ratio of …. . What do you notice?
𝑙𝑎𝑟𝑔𝑒𝑟 𝑣𝑎𝑙𝑢𝑒 1 2 3 5 8 144

The first set of approximations will lead to the value of 𝜑 = 1.618…. The other set of
1
approximations will lead us to its reciprocal = 0.618. Amazing right? This is why the
𝜑
Fibonacci sequence is incorporated to the golden ratio. If Fibonacci sequence is present in
nature then we can see something which brings balance and harmony. The natural world is
really a wonderful place to live in.

Calculating Golden Ratio

Suppose the line segment is divided according to the golden ratio. If the length of the longer
piece is 5cm, how long is the entire segment?

Answer: 8.1cm

Solution: Let a be the longer line segment = 5cm

𝑎
Because the line segment is in the golden ratio we know that = 𝜑.
𝑏
𝑎
We solve for b by multiplying both sides by both b 𝑏 ( ) = 𝑏𝜑
𝑏
𝑎
Divide both sides by 𝜑 𝑏= = 3.1cm
𝜑
The entire segment has length a + b so 5cm + 3.1cm = 8.1cm

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

EXERCISE

Watch the video of Arthur Benjamin, “The Magic of Fibonacci”. This is one of many
inspiring talks from TEDTalk. Watch out for the following items in the video. (Blay,2020)
https://www.ted.com/talks/arthur_benjamin_the_magic_of_fibonacci_numbers

1. Three reasons why we learn mathematics.

• _______________________________________________________________________________________
• _______________________________________________________________________________________
• _______________________________________________________________________________________

2. The most important application of Math according to the speaker:

________________________________________________________________________________________________
3. Mathematics as a science of pattern teaches us how to think:
________________________________, ______________________________, _____________)__________________
4. The speaker’s parting words: Mathematics is not just:
________________________________________________________________________________________________

Determine the value of the following.

𝐹100
5. 𝐹35 6. 𝐹15 + 𝐹18 7.
5

Write the following integers as the sum of at least 2 or 3 distinct Fibonacci

numbers. (Blay,2020)

8. 27 9. 68 10. 97

Verify the following facts about Fibonacci number:

If we make a list of any four consecutive Fibonacci numbers, twice the third number
minus the fourth number is always equal to the first number in the list. Show two
different lists of four consecutive Fibonacci numbers (Tannenbaum,2010)

11. Start with the 4th Fibonacci number

12. Start with 𝐹10

The 18th and 20th Fibonacci number is 2584 and 6765 respectively. Use these
values of Fibonacci to determine the 21st Fibonacci number.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

The following household items were found to have the dimensions shown. Which
item comes closest to having the proportions of the golden ratio?

Standard sheet of paper: Picture frame: 8in x 10in 35-mm slide: 35mm x
8.5 in x 11 in 23mm

What evidences suggests that the golden ratio and golden rectangle hold
particular balance as well as beauty?

In what way does the golden ratio appear in Fibonacci sequence?

Draw a line segment 6 inches long. Subdivide it according to the golden ratio.
Verify your work using the concept of dividing a line segment by Euclid.

Find at least three everyday objects with rectangular shapes. In each case
measure the side lengths and calculate the ratio. Are any of these object golden
rectangles? Explain

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Coloring/Tracing Activity on Fibonacci Numbers

Color the spirals in both directions. The resulting numbers are usually two
consecutive Fibonacci numbers (e.g., 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, . . .). How many
spirals are present in both directions?

The figure is a representation

of a sunflower seed head. Use
two different colored pencils to
mark the clockwise and the
counter clockwise spirals.
Trace the spiral shape through
the circles that define one
spiral. (Note: Some circles will
not be included).

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

PERFORMANCE TASK

GOLDEN RATIO IN DESIGN PROJECTS

You are one of the members of creative design team of SLSU assigned to make a new web page
for Southern Luzon State University. You are tasked to use the dimensions of the golden
rectangle because it is claimed that with these sizes designs will have an ideal visual appeal

Create a web page for your university incorporating the dimensions of the golden rectangle.
Use the size of bond paper ( 8in by 13in)

Visit this website for more info on web design

https://iwa.fi/blog/golden-ratio-in-web-design/

The golden ratio has been used throughout history to create design elements that have an ideal
visual appeal. Because the shape is rooted in nature and mathematics, it’s the perfect
combination of balance and harmony.

The applications for print and web design projects are often less precise than that 1 to 1.618.
Many designers will round numbers when creating a mathematic golden ratio for grids that are
easier to work with. When it comes to applying the concept, it’s often represented using a spiral,
circles or triangles.

Sample web page design with golden rectangles:

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

REFERENCES

Aufmann, Richard N., et al. Mathematical Excursions, 3rd ed., Cengage Learning, 2013.

Bennett, Jeffrey O. et al, Using and Understanding Mathematics: A Quantitative Reasoning

Approach, Pearson Education Inc.,2011

Blay, Basilia E., et al. Mathematical Trips in the Modern World, Outcomes- Based Approach,
Anvil Publishing, Inc, 2020

De Las Peñas, M.L.A.N., Salvador-Amores, A. Enigmatic Geometric Tattoos of the Butbut of

Kalinga, Philippines. Math Intelligencer 41, 31–38 (2019). https://doi.org/10.1007/s00283-
018-09864-6

Earnhart, Richard T., & Adina, Edgar M., Mathematics in the Modern World, Outcome-Based
Module, C&E Publishing, Inc., 2018.

Online References

http://www.jwilson.coe.uga.edu Exploring Fibonacci Sequence

http://www.eniscuola.net/en/2016/06/27/the-numbers-of-nature-the-fibonacci-sequence/
https://www.slideshare.net/mrsbauerart/linear-perspective-14587270
https://www.google.com/search?q=symmetry+in+nature+examples
https://static2.bigstockphoto.com/0/3/1/large1500/130158797.jpg
https://www.shutterstock.com/blog/what-is-the-golden-ratio
https://drawpaintacademy.com/golden-ratio-in-art/

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Module 2
MATHEMATICAL LANGUAGE AND SYMBOLS

“Just as everybody must strive to learn language and writing before he can use them freely
for expression of his thoughts, here too there is only one way to escape the weight of formulas.
It is to acquire such power over the tool that, unhampered by formal technique,
one can turn to the true problems.
- Hermann Weyl [4]
INTRODUCTION

This module aims to familiarize on how to think mathematically that can serve you in different
circumstances. Usually, when you solve mathematical problems, you are very hesitant to do it
further because of difficulties that somehow you can’t even determine where those
complications are coming from. What you can do maybe is to look for examples, read again the
problem to understand the details and find the solution. In understanding the problem, you
need a language that will help you understand more clearly, exactly and unmistakably those
mathematical ideas.

In this module, you will be introduced to some of the special language that is a foundation for
mathematical thoughts on the language of sets, relations and functions, binary operation and
logic.

LEARNING OUTCOMES

At the end of this module, students should be able to:

1. Discuss the language, symbols and conventions of mathematics;
2. Explain the nature of mathematics as language;
3. Perform operations on mathematical expressions; and
4. Use mathematical language to describe and solve problems with mathematics content.

CORE IDEA

Like any language, mathematics has its own symbols, syntax and rules.

DISCUSSION

I. Characteristics of Mathematical Language

Mathematics, as a body of knowledge, has a structure and all elements and operations in it, so
we can say that mathematical language is a system used to communicate mathematical ideas. It
consists of some natural language using technical terms (mathematical terms) and grammatical
conventions, supplemented by a highly specialized symbolic notation for mathematical
formulas. This maybe not apparent to you as student because you are often overwhelmed by
topics discussed to you in math subjects. You may be forgetting the basic concepts in
mathematics that is very important as a foundation in all mathematical learnings.

Mathematical language is your tool to communicate mathematical ideas easier because of the
following characteristics.
1. Math language is non-temporal. It has no past, present and future tense unlike in
English language. There is no conjugation of words and mathematics statements
are presented simple as “is”. Math language carries no emotional content.

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2. It has no equivalent words for joy or sadness. Your aesthetic experience like
mathematicians about math is only a subjective experience. Good values are
learned thru mathematics but cannot be found in a mathematical language.
3. Math language is precise. Statements are exact and accurate. As you can observe
math language is clearly stated and lacks uncertainty.
4. Math language is concise. No need for unnecessary words and briefly stated.
5. Math language is powerful. Complex ideas are well expressed

Parts of Speech in Mathematics

1
1. Numbers or Constants 2, 4, , 5
2
2. Variables 𝑥, 𝑦, 𝑧
3. Relation Symbols =, ≤, ≥,∪,∩, ∈, ⊂
4. Operation Symbols +, −,×,÷
5. Grouping Symbols ( ), { }, [ ]

II. Expressions vs Sentences

Every language has its vocabulary (the words) and its rules for combining these words into
complete thoughts (the sentences). Mathematics is no exception. In studying the mathematical
language, we will make a very broad classification between the ‘nouns’ of mathematics (used to
name mathematical objects of interest) and the ‘sentences’ of mathematics (which state
complete mathematical thoughts).

Mathematical Mathematical
Expression Sentence

Incomplete Complete
thought thought

Example: Example:
3x + 5 3x + 5 = 9
4y 4y > 2

Mathematical expression

An expression is the mathematical analogue of an English noun; it is a correct arrangement of

mathematical symbols used to represent a mathematical object of interest.

An expression does not state a complete thought; it does not make sense to ask if an expression
is true or false. The most common expression types are numbers, sets, and functions. Numbers
have lots of different names: for example, the expressions 5, 2 + 3, 10 + 2, (6 − 2) + 1, and 1 +
1 + 1 + 1 all look different, but are all just different names for the same number. This simple
idea—that numbers have lots of different names—is extremely important in mathematics!

Mathematical sentence

A mathematical sentence is the analogue of an English sentence; it is a correct arrangement of

mathematical symbols that states a complete thought. Sentences have verbs. In the
mathematical sentence ‘3+4=7, 3+4=7’, the verb is ‘=’. A sentence can be (always) true,
(always) false, or sometimes true/sometimes false.

Examples:
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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

1+2 =3 True
1+2 =4 False
𝑥=2 Sometime true/sometimes false
It is true when 𝑥 is 2, and false otherwise.
𝑥+3 =3+𝑥 Always true, no matter what value is chosen
for 𝑥

EXERCISE

For numbers 1 to 7, do the following:

a. Classify each entry as a mathematical expression (EXP), or a mathematical sentence
(SEN).
b. Classify the truth value of each entry that is a sentence: (always) true (T); (always)
false (F); or sometimes true/sometimes false (ST/SF).

Example: 1 + 2 EXP
1+2=3 SEN, T

1. ½
2. 𝑥– 1
3. 𝑥 − 1 = 3
4. 1 + 2 + 𝑥
5. 𝑥 ÷ 3
6. 𝑥 ÷ 3 = 2
7. 1 + 2 + 𝑥 = 𝑥 + 1 + 2

Use the English noun ‘Julia’ in three sentences: one that is true, one that is false, and one
whose truth cannot be determined without additional information.

Use the mathematical expression ‘3’ in three sentences: one that is true, one that is
false, and one whose truth cannot be determined without additional information.

Use the mathematical expression ‘ x ’ in three sentences: one that is always true, one
that is always false, and one whose truth cannot be determined without additional
information.

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III. Conventions in Mathematical Language

Mathematics has its own language, much of which we are already familiar with. For example,
the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, 9 are part of our everyday lives. There are many symbols in
mathematics and most are used as a precise form of shorthand. We need to be confident when
using these symbols, and to gain that confidence we need to understand their meaning. To
understand their meaning there are two things to help us:

✓ context - this is the context in which we are working, or the particular topics
being studied, and
✓ convention - where mathematicians and scientists have decided that particular
symbols will have particular meaning.

Mathematical Convention is a fact, name, notation, or usage which is generally agreed upon by
mathematicians. PEMDAS (Parenthesis, Exponent, Multiplication, Division, Addition and
Subtraction) is an example. All mathematical names and symbols are conventional.

Examples of conventions:
• The letters used for the sides of a triangle are usually 𝑎, 𝑏, and 𝑐, where 𝑐 is the
hypotenuse. The capital letters 𝐴, 𝐵, and 𝐶 are used for the angles.
• Functions are denoted by 𝑓(𝑥), 𝑔(𝑥), or ℎ(𝑥).
• In writing an algebraic expression, the numerical coefficient is written before the
variable in a term.
• The Greek letter ‘pi’, written π, is used to represent the number 3.14159....
• We often use α (‘alpha’), β (‘beta’), and θ (‘theta’) to represent angles.
• The Greek capital letter ‘sigma’ or Σ is frequently used to represent the addition of
several numbers.

There are many other conventions that most mathematicians have been practicing over the
years. It is not to say that other formats are incorrect, but since they are already conventions,
then it will be easier to use them to avoid confusion.

Common Mathematical Symbols

Symbols save time and space when writing. These are three groups of the most commonly used
math symbols that you need to learn in order to solve math questions. (Take time to research on
other examples.)

• Basic Math Symbols +, −,×,÷, =, ≠, ≥

• Set Theory Symbols ∈,∪,∩, ⊂, ⊆, ∉
• Logic symbols ¬, →, ^, ↔

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IV. Sets, Functions, Relations, and Binary Operations

Sets
Any group or collection of objects is called a set. The objects that belong in a set are the
elements, or members of the set. For example, the set consisting of the four seasons has spring,
summer, fall, and winter as its elements.

A set is a well-defined collection of objects if it is possible to determine whether any given item
is an element of the set. For instance, the set of letters of the English alphabet is well defined.
The set of great songs is not a well-defined set. It is not possible to determine whether any
given song is an element of the set or is not an element of the set because there is no standard
method for making such a judgment. The statement “4 is an element of the set of natural
numbers” can be written using mathematical notation as 4 ∈ ℕ. The symbol ∈ is read “is an
element of”. To state that “−3 is not an element of the set of natural numbers,” we use ∉ as the
symbol for “is not an element of ”, and write -3 ∉ ℕ.

Example:
Determine whether each statement is true or false.
1. 4 ∈ {2,3,4,7} True, 4 is in the given set
2. −5 = {2,3,4,7} False, -5 is not in the given set
1 1
3. ∉𝐼 True, is not an integer
2 2
4. The set of nice cars is a well-defined set. False, nice is not precise.

Basic Number Sets

Natural Numbers or Counting Numbers ℕ = {1, 2, 3, 4, 5, . . . }
Integers ℤ = {. . . , −4, −3, −2, −1, 0, 1, 2, 3, 4, . . . }
𝑚
Rational Numbers ℚ = numbers that can be written in the form 𝑛 where 𝑚, 𝑛 ∈ ℤ
Irrational Numbers ℚ𝐶 = numbers that are not rationals
Real Numbers ℝ = the set of all rational or irrational numbers

There are two ways to describe a set. In Listing Method, all or partial members of the set are
listed. In Set-Builder Method, the set is described by listing the properties that describe the
elements of the set.

Examples:

Set Listing Method Set – Builder Method

Let 𝑨 be the set of natural
𝐴 = {1,2,3,4,5,6,7,8,9} 𝐴 = {𝑥|𝑥 ∈ ℕ, 𝑥 < 10}
numbers less than 10.
Let 𝑩 be the set of even
𝐵 = {6,8,10} 𝐵 = {𝑥|𝑥 = 2𝑛, 𝑛 ∈ ℤ, 4 < 𝑥 < 12}
integers between 4 and 12.

❖ The empty set, or null set, is the set that contains no elements. The symbol ∅ or {} is
used to represent the empty set. As an example of the empty set, consider the set of
natural numbers that are negative integers.
❖ A set is finite if the number of elements in the set is a whole number. The cardinal
number of a finite set is the number of elements in the set. The cardinal number of a
finite set A is denoted by 𝑛(𝐴). For instance, if 𝐴 = {1, 4, 6, 9}, then 𝑛(𝐴) = 4.
❖ Equal Sets: Set A is equal to set B, denoted by 𝐴 = 𝐵, if and only if A and B have exactly
the same elements. For instance {𝑑, 𝑒, 𝑓} = {𝑒, 𝑓, 𝑑}.
❖ Equivalent Sets: Set A is equivalent to set B, denoted by A _ B, if and only if A and B
have the same number of elements.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

EXERCISE

Describe the following sets using Listing method.

1. 𝑃= { 𝑛 | 𝑛 𝑖𝑠 𝑎 𝑛𝑎𝑡𝑢𝑟𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑙𝑒𝑠𝑠 𝑡ℎ𝑎𝑛 8 }

2. 𝑆= { 𝑥 | 𝑥 𝑖𝑠 𝑎 𝑛𝑎𝑡𝑢𝑟𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑤ℎ𝑜𝑠𝑒 𝑠𝑞𝑢𝑎𝑟𝑒 𝑖𝑠 𝑙𝑒𝑠𝑠 𝑡ℎ𝑎𝑛 25}
3. 𝑅= {𝑥 | 𝑥 𝑖𝑠 𝑎 𝑟𝑒𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 0 𝑎𝑛𝑑 2}

Given that R denotes the set of all real numbers, Z the set of all integers, and Z+ the
set of all positive integers, describe the following using Listing method.

4. 𝐴 = {𝑥 ∈ 𝑅|−2 < 𝑥 < 5}

5. 𝐵 = {𝑥 ∈ 𝑍+|−2 < 𝑥 < 5}
6. 𝐶 = {𝑥 ∈ 𝑍|−2 < 𝑥 < 5}

Use the set builder notation in describing the given set.

7. {5, 10, 15}

8. {1, 4, 9, 16, 25, 36, 49, 64, 81}
9. {January, March, May, July, August, October, December}

Find the cardinality of each of the following sets.

10. 𝐽 = {2, 5}
11. 𝑆 = {3, 4, 5, 6, 7, . . . , 31}
12. 𝑇 = {3, 3, 7, 51}

Find the cardinality of the following sets.

13. 𝐶 = {1, 5, 4, 11, 13}

14. 𝐷 = {0}
15. 𝐸 = ∅

State whether each of the following pairs of sets are equal, equivalent, both, or
neither.

16. {𝑎, 𝑒, 𝑖, 𝑜, 𝑢}, {3, 7, 11, 15, 19}

17. {4, −2, 7}, {3, 4, 7, 9}
18. {5, 10, 15, 20, 25, 30, . . . , 80}, {𝑥 /𝑥 ∈ 𝑁 𝑎𝑛𝑑 𝑥 < 17}

Set Operations

❖ The Universal Set is the set of all elements that are under consideration.This is usually
denoted by 𝑈.
❖ The complement of a set A, denoted by 𝐴’, is the set of all elements of the universal set
𝑈 that are not elements of 𝐴.

Example:
Let 𝑈 = {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}. Find the complements of 𝑆 and 𝑇 if:
𝑆 = {𝑥 |𝑥 < 10 and 𝑥 ∈ odd counting numbers}, and
𝑇 = {2, 4, 6, 7}.

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Solution:
The elements of the universal set are 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10. 𝑇 = {1, 3, 5, 7, 9}. Excluding
the elements of 𝑇 from 𝑈 gives us 𝑇’ = {2, 4, 6, 8, 10}. Also, from 𝑈, we wish to exclude the
elements of 𝑆, which are 2, 4, 6, and 7. Therefore 𝑆’ = {1, 3, 5, 8, 9, 10}.

❖ Set A is a subset of set B, denoted by 𝐴 ⊆ 𝐵, if and only if every element of A is also an

element of B.

Subset Relationships
A ⊆A, for any set A
∅ ⊆ A, for any set A

The notation 𝐴 ⊄ 𝐵 is used to denote that A is not a subset of B. To show that A is not a subset of
B, it is necessary to find at least one element of A that is not an element of B.

Example:
Determine whether each statement is true or false.
a. {5, 10, 15, 20} ⊆ {10, 15, 20, 25, 30}
b. ℤ ⊆ ℚ
c. {2, 4, 6} ⊆ {2, 4, 6}
d. ∅ ⊆ {1, 2, 3}
Solution
a. False; 5 is not an element of the bigger set.
b. True; every integer is also a rational number
c. True; every set is a subset of itself.
d. True; the empty set is a subset of every set.

❖ Set A is a proper subset of set B, denoted by 𝐴 ⊂ 𝐵, if every element of A is an element

of B, and 𝐴 ≠ 𝐵. In the previous example c., {2,4,6} is a subset of {2,4,6} but is not a
proper subset because proper subsets do not include the set itself.

The Number of Subsets of a Set

A set with n elements has 2n subsets.
Examples
1. {1, 2, 3, 4, 5, 6} has 6 elements, so it has 26 = 64 subsets.
2. {4, 5, 6, 7, 8, ... , 15} has 12 elements, so it has 212 = 4096 subsets.
3. The empty set has 0 elements, so it has 20 = 1 subset.
4. {𝑎, 𝑏, 𝑐} has 3 elements, so it has 23 = 8 subsets. (Can you name them all?)

❖ The union of sets A and B, denoted by A ∪ B, is the set that contains all the elements that
belong to A or to B or to both. In symbols, 𝑨 ∪ 𝑩 = {𝒙|𝒙 ∈ 𝑨 𝐨𝐫 𝒙 ∈ 𝑩}.

Example:
Let 𝐴 = {1, 4, 5, 7}, 𝐵 = {2, 3, 4, 5, 6}, and 𝐶 = {3, 6, 9}. Find 𝐴 ∪ 𝐵 and 𝐴 ∪ 𝐶.

Solution:
𝐴 ∪ 𝐵 = {1, 4, 5, 7} ∪ {2, 3, 4, 5, 6} = {1, 2, 3, 4, 5, 6, 7}
𝐴 ∪ 𝐶 = {1, 4, 5, 7} ∪ {3, 6, 9} = {1, 3, 4, 5, 6, 7, 9}

❖ The intersection of sets A and B, denoted by A ∩ B, is the set of elements common to

both A and B. In symbols, 𝑨 ∩ 𝑩 = {𝒙/𝒙 ∈ 𝑨 𝐚𝐧𝐝 𝒙 ∈ 𝑩}.

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Example:
Let 𝐴 = {1, 4, 5, 7}, 𝐵 _ = {2, 3, 4, 5, 6}, and 𝐶 = {3, 6, 9}. Find A ∩ B and A ∩ C.

Solution:
𝐴 ∩ 𝐵 = {1, 4, 5, 7} ∩ {2, 3, 4, 5, 6} = {4, 5}
𝐴 ∩ 𝐶 = ∅, 𝐴 and 𝐶 have no common element, then they are called disjoint sets.

❖ Two sets are disjoint if their intersection is the empty set. The sets A and C in the
previous example are disjoint.

EXERCISE

In numbers 1 to 5, find the complement of the set given such that

U = {0, 1, 2, 3, 4, 5, 6, 7, 8}.

1. {2, 4, 6, 7}
2. ∅ ____ _________________
3. {x / x < 7 and x ∈ N}
4. {x /x < 6 and x∈ W}
5. The set of odd counting numbers less than 8 __ ________

In numbers 6 to 10, insert either ⊄, ⊂ or ⊆in the blank space between the sets to
make a true statement.

6. {a, b, c, d} ___ {a, b, c, d, e, f, g}

7. {3, 5, 7} ____ {3, 4, 5, 6}
8. the set of real numbers _____ the set of integers
9. ∅ ____ {a, e, i, o, u}
10. {x / x < 10 and x ∈ ℚ ___ the set of integers

In Exercises 11 to 15, let 𝑼 = {𝒑, 𝒒, 𝒓, 𝒔, 𝒕}, 𝑫 = {𝒑, 𝒓, 𝒔, 𝒕}, 𝑬 = {𝒒, 𝒔},

𝑭 = {𝒑, 𝒕}, & 𝑮 = {𝒔}. Determine whether each statement is true or false.

11. 𝐹⊆𝐷
12. 𝐺⊂𝐸
13. ∅⊂𝐷
14. D has exactly eight subsets and seven proper subsets.
15. U has exactly 32 subsets.

In 16 to 20, Let 𝑱 = {𝟏, 𝟐, 𝟑, 𝟒, 𝟓}, 𝑲 = {𝐬𝐞𝐭 𝐨𝐟 𝐞𝐯𝐞𝐧 𝐧𝐮𝐦𝐛𝐞𝐫𝐬}, and 𝑳 = {𝟏, 𝟑, 𝟓}.
Perform the given operations on sets.

16. 𝐽∪𝐿
17. 𝐽∩𝐾
18. 𝐽∩𝐿
19. 𝐽∪𝐾∪𝐿
20. 𝐽∩𝐾∩𝐿

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Relations and Functions

A relation is used to describe certain properties of things. That way, certain things may be
connected in some way; this is called a relation. It is clear, that things are either related, or they
are not, there is no in between.

Recall from your Algebra class in high school that ordered pairs are defined in terms of sets,
cartesian product in terms of ordered pairs and relation in terms of cartesian product. All
these terms are somehow related, so thus, function.

A function 𝐹 from a set 𝐴 to a set 𝐵 is a relation with domain 𝐴 and co-domain 𝐵 that satisfies
the following properties:

1. For every element 𝑥 in 𝐴, there is an element 𝑦 in 𝐵 such that (𝑥, 𝑦) ∈ 𝐹.

2. For all elements 𝑥 in 𝐴 and 𝑦 and 𝑧 in 𝐵, if (𝑥, 𝑦) ∈ 𝐹 and (𝑥, 𝑧) ∈ 𝐹, then 𝑦 = 𝑧.

Example:
Let 𝐴 = {2,4,6} and 𝐵 = {1,3,5}. Which among the relations 𝑅, 𝑆 and 𝑇 defined below are
functions from 𝐴 to 𝐵?

a. 𝑅 = {(2,5), (4,1), (4,3), (6,5)}

b. For all (𝑥, 𝑦) ∈ 𝐴 𝑥 𝐵, (𝑥, 𝑦) ∈ 𝑆 means 𝑦 = 𝑥 + 1
c. 𝑇 is defined by the arrow diagram

2• •1

4• •3

6• •5

Solution:
a. R is not a function because it does not satisfy property 2. Ordered pairs (4,1) and (4,3)
have the same first elements. It can also be illustrated in an arrow diagram in which you
can see clearly that there are 2 arrows coming out of 4 (one to many).
b. S is not a function because it did not satisfy property 1 since 𝐴 = {(2,3), (4,5)} as
determined by 𝑦 = 𝑥 + 1. If 𝑥 is 6, then 𝑦 is 7 and 7 is not in set 𝐵, therefore 6 cannot
be used as the first component in S.
c. As shown in no. 3 problem, each element in {2,4,6} is related to some element in {1,3,5}
and no element in {2,4,6} is related to more than 1 element in {1,3,5}. (many to one)

EXERCISE

Let 𝐸 = {1,2,3} and 𝐹 = {−2, −1, 0} and define a relation 𝑇 from 𝐸 to 𝐹 as follows:
𝑥−𝑦
For all (𝑥, 𝑦) ∈ 𝐸 𝑥 𝐹, (𝑥, 𝑦) ∈ 𝑇 means that is an integer.
3

1. Write T as a set of ordered pairs.

2. Write the domain and co-domain of T.
3. Draw an arrow diagram for T.
4. Is the relation T a function? Why?

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Binary Operation

The word "binary" means composed of two pieces. A binary operation is simply a rule for
combining two values to create a new value. The most widely known binary operations are
addition, subtraction, multiplication and division on various sets of numbers. Thus, the binary
operation can be defined as an operation * which is performed on a set A. (Note: * is any
operation.)

Properties of Binary Operation

Closure property:
An operation * on a non-empty set A has closure property, if
a ∈ A, b ∈ A if a * b ∈ A.

Let us show that addition is a binary operation on real numbers ℝ and natural numbers ℕ. So, if
we add two operands which are natural numbers 𝑎 and 𝑏, the result will also be a natural
number. The same holds good for real numbers. Hence,

+: ℝ + ℝ → ℝ is given by (𝑎, 𝑏) → 𝑎 + 𝑏
+: ℕ + ℕ → ℕ is given by (𝑎, 𝑏) → 𝑎 + 𝑏

Let us show that multiplication is a binary operation on real numbers (R) and natural numbers
(N). So, if we multiply two operands which are natural numbers a and b, the result will also be a
natural number. The same holds good for real numbers. Hence,

𝑥: ℝ × ℝ → ℝ is given by (𝑎, 𝑏) → 𝑎 𝑥 𝑏
𝑥: ℕ × ℕ → ℕ is given by (𝑎, 𝑏) → 𝑎 𝑥 𝑏

V. Logic

Logic is the study of the methods and principles used to distinguish correct from incorrect
reasoning. Using the methods and techniques of logic—one can distinguish reliably between
sound and faulty reasoning.

Every language contains different types of sentences, such as statements, questions, and
commands. For instance,
“Is the test today?” is a question.
“Go get the newspaper” is a command.
“This is a nice car” is an opinion.
“Denver is the capital of Colorado” is a statement of fact.

A statement is a declarative sentence that is either true or

false, but not both true and false.

You may not know if the sentence is true, but you do know that the sentence is either true or it
is false, and that it is not both true and false. Thus, you know that the sentence is a statement.

Example:
Determine whether each sentence is a statement.
a. Florida is a state in the United States.
b. How are you?
c. 99 + 2 is a prime number.
d. 𝑥 + 1 = 5.

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Solution:
a. Florida is one of the 50 states in the United States, so this sentence is true and it is a
statement.
b. The sentence “How are you?” is a question; it is not a declarative sentence. Thus, it is not
a statement.
c. You may not know whether 99 + 2 is a prime number; however, you do know that it is a
whole number larger than 1, so it is either a prime number or it is not a prime number.
The sentence is either true or it is false, and it is not both true and false, so it is a
statement.
d. 𝑥 + 1 = 5 is a statement. It is known as an open statement. It is true for x = 4, and it is
false for any other values of x. For any given value of x, it is true or false but not both.

EXERCISE

Determine whether each sentence is a statement or not, then explain why or why not.

1. The Dark Knight is the greatest movie of all time.

2. Open the door.

3. The area code for Lucban is 3003.

4. January 1, 2021 will be a Sunday.

5. 7055 is a large number.

Simple Statements and Compound Statements

A simple statement is a statement that conveys a single idea. A compound statement is a

statement that conveys two or more ideas. Connecting simple statements with words and
phrases such as and, or, if . . . then, and if and only if creates a compound statement.

We will use symbols such as p, q, r, and s to represent simple statements and the symbols ∧, ∨,
∼, → 𝑎𝑛𝑑 ↔ to represent connectives as shown in the table below.

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Example 1: (Negation)
Write the negation of each statement.
a. Bill Gates has a yacht.
b. Avatar was not selected as best picture at the 82nd Academy Awards ceremony.
Solution
a. Bill Gates does not have a yacht.
b. Avatar was selected as best picture at the 82nd Academy Awards ceremony.

Example 2: (Conjunction)
Determine whether each statement is true or false.
a. 5 is a whole number and 5 is an even number.
b. 2 is a prime number and 2 is an even number.
Solution:
a. This is a false statement because 5 is not an even number.
b. This is a true statement because each simple statement is true.

In any conditional statement represented by “If 𝑝, then 𝑞” or by “If 𝑝, 𝑞” the 𝑝 statement is called
the antecedent and the q statement is called the consequent.

The conditional 𝑝 → 𝑞 is false if 𝑝 is true and 𝑞 is false. It is true in all other cases. The
conditional statement, “If 𝑝, then 𝑞,” can be written using the arrow notation 𝑝 → 𝑞, read as “if
p, then q” or as “p implies q.”

Example 3: (Conditional)
Identify the antecedent and consequent in the following statements.
a. If our school was this nice, I would go there more than once a week.
b. If you don’t stop and look around once in a while, you could miss it.
c. If you strike me down, I shall become more powerful than you can possibly imagine.
Solution
a. Antecedent: our school was this nice
Consequent: I would go there more than once a week
b. Antecedent: you don’t stop and look around once in a while
Consequent: you could miss it
c. Antecedent: you strike me down
Consequent: I shall become more powerful than you can possibly imagine.

Example 4: (Conditional)
Determine the truth value of each of the following.
a. If 2 is an integer, then 2 is a rational number.
b. If 3 is a negative number, then 5 > 7.
c. If 5 > 3, then 2 + 7 = 4.
Solution:
a. Because the consequent is true, this is a true statement.
b. Because the antecedent is false, this is a true statement.
c. Because the antecedent is true and the consequent is false, this is a false statement.

Example 5: (Biconditional)
State whether each biconditional is true or false.
a. 𝑥 + 4 = 7 if and only if 𝑥 = 3.
b. 𝑥 2 = 36 if and only if 𝑥 = 6.
Solution:
a. Both equations are true when 𝑥 = 3, and both are false when 𝑥 ≠ 3. Both
equations have the same truth value for any value of x, so this is a true statement.
b. If 𝑥 = −6, the first equation is true and the second equation is false. Thus, this is a
false statement.
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Example 6: (Translating Compound Statements)

Let p, q, and r represent the following simple statements:
p: You get a promotion.
q: You complete the training.
r: You will receive a bonus.
a. Write (p ∧ q) → r as an English sentence.
b. Write “If you do not complete the training, then you will not get a promotion and you
will not receive a bonus.” in symbolic form.
Solution:
a. Because the p and the q statements both appear in parentheses in the symbolic form,
they are placed to the left of the comma in the English sentence.
Thus, the translation is:
“If you get a promotion and complete the training, then you will receive a bonus.”
b. Because the not p and the not r statements are both to the right of the comma in the
English sentence, they are grouped together in parentheses in the symbolic form.
Thus, the translation is: ~q → (~p ∧∼r)

In a statement, the word some and the phrases there exists and at least one are called existential
quantifiers. Existential quantifiers are used as prefixes to assert the existence of something.

In a statement, the words none, no, all, and every are called universal quantifiers. The universal
quantifiers none and no deny the existence of something, whereas the universal quantifiers all
and every are used to assert that every element of a given set satisfies some condition.

Examples:
There exists a real number whose multiplicative inverse is itself.
All elements of the set of integers are elements of the set of rationals.

Equivalent Forms of the Conditional Statement

Every conditional statement can be stated in many equivalent forms. The table below lists some
of the various forms that may be used to write a conditional statement denoted by 𝑝 → 𝑞:

If 𝒑, then 𝒒. 𝒑 only if 𝒒. Not 𝒑 or 𝒒. 𝒒, if 𝒑. 𝒒 is a necessary condition for 𝒑.

If 𝒑, 𝒒. 𝑝 implies 𝑞. Every 𝑝 is a 𝑞. 𝑞, provided that 𝑝. 𝑝 is a sufficient condition for 𝑞.

Example 1:
Write each of the following in “If p, then q” form.
a The number is an even number provided that it is divisible by
b Today is Friday, only if yesterday was Thursday.
Solution:
a. The statement, “The number is an even number provided that it is divisible by 2,” is
in “q provided that p” form. The antecedent is “it is divisible by 2,” and the
consequent is “the number is an even number.” Thus its “If p, then q” form is “If it is
divisible by 2, then the number is an even number.”
b. The statement, “Today is Friday, only if yesterday was Thursday,” is in “p only if q”
form. The antecedent is “today is Friday.” The consequent is “yesterday was
Thursday.” Its “If p, then q” form is “If today is Friday, then yesterday was Thursday.”

Statements Related to the Conditional Statement

The converse of p → q is q → p.
The inverse of p → q is ∼p → ∼q.
The contrapositive of p → q is ∼q →∼p.
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Example 2:
Write the converse, inverse, and contrapositive of the statement “If I get the job, then I will rent
the apartment.”

Solution:
Converse: If I rent the apartment, then I get the job.
Inverse: If I do not get the job, then I will not rent the apartment.
Contrapositive: If I do not rent the apartment, then I did not get the job.

EXERCISE

Write the negation of each statement.

1. The Giants lost the game.

2. The lunch was served at noon.
3. The game did not go into overtime.
4. The game was not shown on ABC.
5. The dog does not need to be fed.

Determine whether each statement is true or false.

6. 7 < 5 𝑜𝑟 3 > 1
7. 3≤9
8. (−1)50 = 1 𝑎𝑛𝑑 (−1)99 = −1
9. 7 ≠ 3 𝑜𝑟 9 𝑖𝑠 𝑎 𝑝𝑟𝑖𝑚𝑒 𝑛𝑢𝑚𝑏𝑒𝑟
10. −5 ≥ −11
11. 4.5 ≤ 5.4
12. 2 is an odd number or 2 is even. __________ _________________

Write each sentence in symbolic form. Represent each simple statement in the
sentence with the letter indicated in the parentheses. Also state whether the
sentence is a conjunction, a disjunction, a negation, a conditional, or biconditional.

13. If today is Wednesday (𝑤), then tomorrow is Thursday (𝑡).

14. I went to the post office (𝑝) and the bookstore (𝑠).
15. A triangle is an equilateral triangle (𝑙) if and only if it is an equiangular triangle (𝑎).

Write each sentence in symbolic form. Use p, q, r and s as defined below.

𝑝: Dwyane Wade is a football player.
𝑞: Dwyane Wade is a basketball player.
𝑟: Dwyane Wade is a rock star.
𝑠: Dwyane Wade plays for the Miami Heat.

16. Dwyane Wade is a football player or a basketball player, and he is not a rock star.
17. Dwyane Wade is a rock star, and he is not a basketball player or a football player.
18. If Dwyane Wade plays for the Miami Heat, then he is a basketball player and he is
not a football player.

Identify the antecedent and the consequent of each conditional statement.

19. If I had the money, I would buy the painting.

20. If Shelly goes on the trip, she will not be able to take part in the graduation
ceremony.
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Write each statement in “If 𝒑, then 𝒒” form.

21. Every nonrepeating, nonterminating decimal is an irrational number.

22. Being well known is a necessary condition for a politician.

Write the converse, inverse, and contrapositive of the given statement.

23. If 𝑥 + 4 > 7, then 𝑥 > 3.

24. Every trapezoid has exactly two parallel sides.

Determine the original statement if the given statement is related to the original
statement in the manner indicated.

25. Converse: If 𝑥 > 2, then x is an odd prime number.

26. Inverse: If their manager will not contact me, then I will not purchase any of their
products.
27. Contrapositive: If Ginny can’t rollerblade, then I can’t rollerblade.

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REFERENCES

Aufman,Richard N.,et al,(2013), Mathematical Excursions. 3rd ed.,Brookes/Cole, Cengage

Learning

Medallon, Merlita C. et al (2018), Mathematics in the Modern World, Mindshapers Co., Inc.

Reyes, Juan Apolinario C. (2019), Mathematics in the Modern World, Unlimited Books Library
Services & Publishing Inc.

Sirug, Winston, (2018), Mathematics in the Modern World, Mindshapers Co.,Inc.

Online References:

http://www.onemathematicalcat.org/pdf_files/LANG1.pdf
https://www.dpmms.cam.ac.uk/~wtg10/grammar.pdf
https://math.libretexts.org/Courses/Mount_Royal_University/MATH_2150%3A_Higher_Arithm
etic/1%3 Binary_operations/1.1%3A_Binary_operations

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Module 3
PROBLEM SOLVING AND REASONING

“Every problem has a solution. You just have to be creative enough to find it.”
- Travis Kalanick

INTRODUCTION

Problems are inevitable. And because of that, one must learn the necessary skills to arrive at
solutions to different types of problems encountered. It is imperative that we study different
approaches and strategies in problem solving. This module presents the fundamental principles
of problem solving along with some specific processes that can be applied to certain types of
problems. Its main goal is to develop students’ skills in pattern recognition, critical and logical
thinking, and creativity. This also aims to help students become better problem solvers, develop
interest in problem solving and consider it as an enjoyable experience.

LEARNING OUTCOMES

At the end of this module, students should be able to:

5. Explain Polya’s four-step problem solving strategy;
6. Apply Polya’s four-step problem solving strategy in solving certain problems;
7. Distinguish inductive reasoning from deductive reasoning;
8. Give examples of inductive and deductive processes of inference; and
9. Use either the inductive or deductive reasoning to solve practical problems; and
10. Solve problems using different approaches and strategies.

DISCUSSION

I. Polya’s Strategy

George Polya, known as the father of modern problem solving, created his famous four-step
process for problem solving. The steps are:

•Have a clear understanding of the problem.

Understand
the Problem

•Enumerate the steps to be taken to solve the problem: List down the given information,
use variables to represent unknowns, translate to mathematical sentences, draw, create
Device a a table, etc.
Plan

•Carry out the plan carefully and accurately, taking note all the attempts.
Carry out
the Plan

•Ensure the solution is consistent with the facts of the problem, interpret the solution in
Review the the context of the problem, review the details, and check the validity of the final answer.
Solution

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Example 1:
A baseball team won two out of their last four games. In how many different orders could they
have two wins and two losses in four games?

Solution:
Understand the Problem – There are many different orders. The team may have won two
straight games and lost the last two (𝑊𝑊𝐿𝐿) or they may have lost in the first two games and
won the last two (𝐿𝐿𝑊𝑊). Of course there are other possibilities, such as 𝑊𝐿𝑊𝐿.

Devise a Plan – We will make an organized list of all the possible orders. An organized list is a
list that is produced using a system that ensures that each of the different orders will be listed
once and only once.

Carry Out the Plan – Each entry in our list must contain two 𝑊s and two 𝐿s. We will use a
strategy that makes sure each order is considered, with no duplications. One such strategy is to
always write a 𝑊 unless doing so will produce too many 𝑊s or a duplicate of one of the
previous orders. If it is not possible to write a 𝑊, then and only then do we write an 𝐿. This
strategy produces the six different orders shown below.
1. 𝑊𝑊𝐿𝐿 (Start with two wins)
2. 𝑊𝐿𝑊𝐿 (Start with one win)
3. 𝑊𝐿𝐿𝑊
4. 𝐿𝑊𝑊𝐿 (Start with one loss)
5. 𝐿𝑊𝐿𝑊
6. 𝐿𝐿𝑊𝑊 (Start with two losses)

Review the Solution – We have made an organized list. The list has no duplicates and the list
considers all possibilities, so we are confident that there are six different orders in which a
baseball team can win exactly two out of four games.

Example 2:
The product of the ages, in years, of three teenagers is 4590. None of the teens are the same age.
What are the ages of the teenagers?

Solution:
Understand the Problem – We need to determine three distinct counting numbers, from the list
13, 14, 15, 16, 17, 18, and 19, that have a product of 4590.

Devise a Plan – If we represent the ages by 𝑥, 𝑦, and 𝑧, then 𝑥𝑦𝑧 = 4590. We are unable to solve
this equation, but we notice that 4590 ends in a zero. Hence, 4590 has a factor of 2 and a factor
of 5, which means that at least one of the numbers we seek must be an even number and at least
one number must have 5 as a factor. The only number in our list that has 5 as a factor is 15. Thus
15 is one of the numbers, and at least one of the other numbers must be an even number. At this
point we try to solve by guessing and checking.

Carry Out the Plan –

15 ∗ 16 ∗ 18 = 4320 → No, this product is too small.
15 ∗ 16 ∗ 19 = 4560 → No, this product is too small.
15 ∗ 17 ∗ 18 = 4590 → Yes, this is the correct product.
The ages of the teenagers are 15, 17, and 18.

Review the Solution – Because 15 ∗ 17 ∗ 18 = 4590, and each of the ages represents the age of a
teenager, we know our solution is correct. None of the numbers 13, 14, 16, and 19 is a factor
(divisor) of 4590, so there are no other solutions.

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EXERCISE

Apply Polya’s Strategy to solve the following problems.

1. Twenty-four points are placed around a circle. A line segment is drawn between each
pair of points. How many line segments are drawn?

2. There are 364 first-grade students in Park Elementary School. If there are 26 more girls
than boys, how many girls are there?

3. If eight people greet each other at a meeting by shaking hands with one another, how
many handshakes take place?

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II. Problem Solving Strategies

1. Guess and test (Trial and error) – this is the most common method that students tend to
use when solving a given problem. This includes trying different possible answers to the
question and checking if it is correct and if not, then try another guess.

Example:
Place the digits 8, 9, 10, 12, & 13 in the circles so that the sum across and vertically equal to 31.

It is possible to systematically answer this

problem, but since we are dealing with just 5
numbers and addition is the only operation, it
will be faster and easier to just simply guess it.
Few trials will be enough to correctly answer
the problem. (Try it!)

2. Picture/Diagram/Experiment – this method is used by most people because it is much

easier to solve a problem if you can draw or picture it, or try it out yourselves, instead of
just imagining things.

Example:
Using only a 5L and an 11L can, how can you have exactly 7L of water?

This is one of the problems that were

presented in class during our group activities.
5L 11L And solving this easily would involve actually
experimenting on it, or drawing scenarios or
steps. (Try it!)

3. Working backwards – this is when we are given a problem wherein a final output is
given, and we are asked to find something at the beginning or somewhere at the middle.
Since the final output is provided, the best way is to start from there, then work
backwards, reversing all actions.

Example:
Mary is thinking of a number. If you double it, and subtract 7 you obtain 11. What is the
number?

Solution:
Since we are given the final answer which is 11, it is best to start from there, and then go
backwards. First, we see that 11 is obtained after subtracting 7 to the previous number. Since
we work backwards, instead of subtracting, we add. Thus, the previous number is 11 + 7 = 18.
From 18, we see that it is obtained by doubling the previous number. Thus, the previous
18
number is = 9. Therefore, 9 is Mary’s number. We can check it by substituting 9 to the
2
problem. We have 9, if we double it, we get 18, and subtracting 7 from 18, we get 11. So our
answer is correct.

4. Looking for patterns – this is used when we can find a pattern in a given problem or
sequence. (More examples are presented in Section IV.)

Example:
Fill the missing the number in the sequence 1, 4, 9, 16, ___, 36, 49, 64, 81, 100, …

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Solution:
In this sequence, we can observe that the given numbers are actually perfect squares, 1 =
12 , 4 = 22 , 9 = 32 , 16 = 42 and so as the others. Thus, we can conclude that the missing number
is actually 52 which is equal to 25.

5. Listing/tabular – this is often used when we are asked to answer problems where we
need to list down possibilities so we can look at it properly. Of course we can just use a
scratch paper and write things randomly but this is more organized and easier to look
at.

Example:
Let 𝐹(𝑛) denote the 𝑛𝑡ℎ term in the Fibonacci Sequence where 𝐹(1) = 1, 𝐹(2) = 1, 𝐹(3) = 2
and so on. Find the least value of 𝑛 such that 𝐹(𝑛) > 500.

Solution:
In this problem, we are asked to find the smallest 𝑛 so that 𝐹(𝑛) is greater than 500. One way to
do it is to make a table and list down the terms of the Fibonacci sequence with the
corresponding 𝑛.

𝒏 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
𝑭(𝒏) 1 1 2 3 5 8 13 21 34 55 89 144 233 377 610 987 1597

In this table, all we do is to find the smallest 𝑛 so that 𝐹(𝑛) > 500. We see that 610, 987, 1597
are all greater than 500. Therefore, the possible values of 𝑛 that will give us these values are 15,
16, 17, and even greater. But, we are only asked to find the smallest. And the smallest here is 15.
So the answer is 15.

6. Algebraic equations – this method is used when it is not enough to simply look at the
problems, draw it, or guess. This happens when the given problem is too complex and
there are way too many possible answers, or the values are too big.

Example:
The sum of the two digits of a 2-digit number is 11. Reversing the digits increase the number by
45. What is the number?

Solution:
We use Polya’s strategy in solving this problem We enumerate the steps as follows:

Understand the problem – In this problem, we are asked to find a two digit number. It says that if
we add the two digits of this number, we get 11. (For example, 65 is possible because 6 + 5 =
11, but that’s not the only possible combination.) Next, it tells us that if reverse the numbers,
meaning if we interchange their positions, then the resulting number is 45 more than the
original (Well, if we reversed 65, it will be 56, so definitely it’s not the answer).

Translate – After understanding the problem, we now try to translate it to mathematical

sentences. First, how do we translate “The sum of the two digits of a 2-digit number is 11”?
Since we are dealing with two unknown values, we can use two variables to represent them, say
𝑥 is the first and 𝑦 is the second. Therefore,

𝑥 + 𝑦 = 11. (Equation 1)

But what is the number? Is it 𝑥𝑦? No. Because if it is 𝑥𝑦, you will be multiplying the two digits,
and that is not right (It is different when we are dealing with variables already). For example, if

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you have 65, we know that to get 65 out of the digits 6 and 5, we have to multiply the tens digit
with 10 and add the ones digit. So 10(6) + 5 = 60 + 5 = 65.

Now, if we have the 𝑥 and 𝑦 as variables, then the number that we are looking for is

10𝑥 + 𝑦 (The unknown number)

But since we have two variables to solve, it is not enough that we only have one equation (The
second one is not an equation). Thus, we need another one. Going back to the problem, it tells us
that if we reversed the digits, we get a number that is 45 more than the original one. So we are
saying that if we have 10𝑦 + 𝑥 (we interchanged 𝑥 and 𝑦), then this will be equal to 45 + (10𝑥 +
𝑦). Thus we have the second equation

10𝑦 + 𝑥 = 45 + 10𝑥 + 𝑦 (Equation 2)

Solve – Since we have enough equations to solve for the unknown values, we can already solve
it.

𝑥 + 𝑦 = 11 → 𝑦 = 11 − 𝑥 Rewrite Equation 1.

10𝑦 + 𝑥 = 45 + 10𝑥 + 𝑦 Simplify Equation 2 by combining like terms

10𝑦 − 𝑦 + 𝑥 − 10𝑥 = 45 and leaving the variables in one side and the
9𝑦 − 9𝑥 = 45 constant in the other side of the equation.

9(11 − 𝑥) − 9𝑥 = 45 Since 𝑦 = 11 − 𝑥 from Equation 1, substitute

99 − 9𝑥 − 9𝑥 = 45 11 − 𝑥 to 𝑦 in Equation 2. Solve for 𝑥.
99 − 18𝑥 = 45
−18𝑥 = 45 − 99
−18𝑥 = −54
−18𝑥 −54
=
−18 −18
𝒙=𝟑

𝑦 = 11 − 3 Solve for 𝑦 using the computed value of 𝑥 and

𝒚=𝟖 Equation 1.

Therefore, we have 𝑥 = 3 and 𝑦 = 8, so our number is 38.

Check – We now try to check if our answer is correct. If we have 38, then the sum of its digits, 3
and 8 is obviously 11. Now, reversing the digits, we have 83. We can check that 83 = 38 + 45.
Therefore, 38 is correct.

7. Logical Reasoning – this deals with the way we analyse things, and how we come up
with solutions to our problems. This can go with every other method that was discussed
earlier, whichever is appropriate. There are two types of reasoning which will be
discussed in the next section.

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EXERCISE

Solve each of the following problems.

1. How many square are in the following figure?

2. In a basketball league consisting of 12 teams, each team plays each of the other teams
exactly twice. How many league games will be played?

3. A room measures 12 feet by 15 feet. How many 3-foot by 3-foot squares of carpet are
needed to cover the floor of this room?

4. Nine dots are arranged as shown. Is it possible to connect the nine dots with exactly four
lines if you are not allowed to retrace any part of a line and you are not allowed to
remove your pencil from the paper? If it can be done, demonstrate with a drawing.
⦁ ⦁ ⦁
⦁ ⦁ ⦁
⦁ ⦁ ⦁
5. You have eight coins. They all look identical, but one is a fake and is slightly lighter than
the others. Explain how you can use a balance scale to determine which coin is the fake
in exactly a) two weighings; and b) three weighings.

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III. Inductive and Deductive Reasoning

1. Inductive Reasoning – the type of reasoning that forms a conclusion based on the
examination of specific examples.

Example 1:
During the past 10 years, a tree has produced plums every other year. Last year, the tree did not
produce plums, so this year, the tree will produce plums.

We arrive at our answer based on our observation on what has been happening for the past
years, thus, this might not be that accurate, but, it is what is most likely to happen based on
experience.

Example 2:
Use inductive reasoning to predict the next number in the sequence 5, 10, 15, 20, ?

Solution:
Each successive number is 5 larger than the preceding number. Thus we predict that the next
number in the list is 5 larger than 20, which is 25.

❖ The conclusion formed using inductive reasoning is often called a conjecture, since it
may or may not be correct.

Example 3:
The period of a pendulum is the time it takes for the pendulum to swing from left to right and
back to its original position. The following table shows some results obtained for pendulums of
various lengths. (For the sake of convenience, a length of 10 inches has been designated as 1
unit.) If a pendulum has a length of 49 units, what is its period? If the length of a pendulum is
quadrupled, what happens to its period?
Length of pendulum Period of pendulum,
in units in heartbeats
1 1
4 2
9 3
16 4
25 5
36 6

Solution:
In the table, each pendulum has a period that is the square root of its length. Thus we conjecture
that a pendulum with a length of 49 units will have a period of 7 heartbeats. To answer the
second question, note that a pendulum with a length of 4 units has a period that is twice that of
a pendulum with a length of 1 unit. A pendulum with a length of 16 units has a period that is
twice that of a pendulum with a length of 4 units. It appears that quadrupling the length of a
pendulum doubles its period.

❖ A statement is a true statement provided that it is true in all cases. If you can find one
case for which a statement is not true, called a counterexample, then the statement is a
false statement.

Example 4:
Verify that each of the following statements is a false statement by finding a counterexample.
For all numbers 𝑥:
a) |𝑥 | > 0 b) 𝑥 2 > 𝑥

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Solution:
A statement may have many counterexamples, but we need only fi nd one counterexample to
verify that the statement is false. For a), we can let 𝑥 = 0, so that |𝑥 | = 0 which is equal (not
greater than) 0. Thus, this is a false statement because we have found a counterexample. For b),
1 1
we can let 𝑥 = 1, so that 𝑥 2 = 1, which is again, equal to 1. We can also take 𝑥 = , so 𝑥 2 = , and
2 4
1 1
< , which is a contradiction to the statement.
4 2

2. Deductive Reasoning – it is the process of reaching a conclusion by applying general

principles and procedure.

Example 1:
All home improvements cost more than the estimate. The contractor estimated that my home
improvement will cost P200,000.00. Thus, my home improvement will cost more than
P200,000.00.

Here, it is already given as a fact that ALL home improvements cost more than the estimate.
Therefore, if we are given estimate, then we know that the actual cost will be bigger. It is not just
based on observations, but with given facts.

Example 2:
Use deductive reasoning to show that the following procedure produces a number that is three
times the original number.
Procedure: Pick a number. Multiply the number by 9, add 6 to the product, divide the sum by 3,
and subtract 2.

Solution:
Let 𝑥 represent the original number.

9𝑥 Multiply the number by 9.

9𝑥 + 6 Add 6 to the product.
9𝑥 + 6 Divide the sum by 3.
3
9𝑥 + 6 Subtract 2.
−2
3
9𝑥 + 6
−2 Simplify.
3
3𝑥 + 2 − 2
𝟑𝒙 We started with 𝑥 and ended with 3x. The
procedure given in this example produces a
number that is three times the original
number.

❖ Logic puzzles can be solved by using deductive reasoning and a chart that helps us
visualize the problem.

Example 3:
Each of four neighbors, Kristan, Michael, Luis, and Francis, has a different occupation (editor,
banker, chef, or dentist). From the following clues, determine the occupation of each neighbor.

▪ Michael gets home from work after the banker but before the dentist.
▪ Luis, who is the last to get home from work, is not the editor.
▪ The dentist and Luis leave for work at the same time.
▪ The banker lives next door to Francis.
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Solution:
From the first clue, we can already tell that Michael is not the banker or the dentist. Thus, we
can already mark it x in our table. From the second clue, it is mentioned that Luis is not the
editor, and the third clue is implying that he is also not the dentist, so we mark it x. Finally,
Francis is living next to the banker, so clearly, he is not the banker. We mark it with x.

editor banker chef dentist

Kristan
Michael x x
Luis x x
Francis x

The table shows the initial information that we can get from the clues given. Now, to deduce
more information, we analyse further the clues. It was mentioned from the second clue that Luis
is the last to get home from work, therefore, from the first clue, we observe that he is not the
banker, because clearly the banker is not the last one to go home because Michael and the
dentist goes home after him. We can mark it with x.

editor banker chef dentist

Kristan
Michael x x
Luis x x x
Francis x

From the table, we can observe that the only one who can possibly be the banker is Kristan.
Thus, we can already mark it with ❶. Obviously, Kristan can no longer have the other
occupations so we can mark the entire row with x.

editor banker chef dentist

Kristan x ❶ x x
Michael ❸ x x
Luis x x ❹ x
Francis x ❷

Continuing this fashion, we can conclude that Francis is the dentist, mark it ❷. Then Michael is
the editor, mark it ❸. Finally, Luis, is the chef, marked ❹.

editor banker chef dentist

Kristan x ❶ x x
Michael ❸ x x x
Luis x x ❹ x
Francis x x x ❷

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EXERCISE

• Use inductive reasoning to predict the next number in each list.

1. 4, 8, 12, 16, 20, 24, _____ 6. 80, 70, 61, 53, 46, 40, _____
3 5 7 9 11 13
2. 5, 11, 17, 23, 29, 35, _____ 7. , , , , , , _____
5 7 9 11 13 15
1 2 3 4 5 6
3. 3, 5, 9, 15, 23, 33, _____ 8. , , , , , , _____
2 3 4 5 6 7
4. 1, 8, 27, 64, 125, _____ 9. 2, 7, −3 , 2, −8, −3, −13, −8, −18, _____
5. 1, 4, 9, 16, 25, 36, 49, _____ 10. 1, 5, 12, 22, 35, _____

• Determine whether the argument is an example of inductive reasoning or

deductive reasoning. Justify.

11. All pentagons have exactly five sides. Figure A is a pentagon. Therefore, Figure A has
exactly five sides.

12. Every P.E. teacher likes to dance. Vivian is a P.E. teacher, so Vivian likes to dance.

• Use inductive or deductive reasoning to decide whether each statement is correct.

Justify.

13. The sum of any two even counting numbers is always an even counting number.

14. Pick any counting number. Multiply the number by 6. Add 8 to the product. Divide the
sum by 2. Subtract 4 from the quotient. The resulting number is twice the original
number.

1
15. For all numbers 𝑥, 𝑥 > .
𝑥

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IV. Mathematical Problems Involving Patterns

❖ An ordered list of numbers such as 6, 12, 18, 24, 30, … is called a sequence. The numbers
in a sequence are called terms of the sequence. In the given sequence, we call 6 as the
first term, 12 the second term, and so on.
❖ The 𝒏th term of a sequence is denoted by 𝒂𝒏 .
❖ That is, a sequence consisting of 𝑛 terms is represented by 𝑎1 , 𝑎2 , 𝑎3 , … , 𝑎𝑛 .

By examining the given terms in the sequence, we can analyse and try to find the pattern so that
we can identify the next term. In the sequence above, we can observe that the next term is
computed by adding 6 to the preceding term. Thus, we can conclude that the term after 30 is 36,
followed by 42, 48, and so on.

❖ In some cases, it is possible to predict or derive a formula, called the 𝒏𝒕𝒉 term formula,
which can generate the terms of the given sequence.

Example 1:
Consider the sequence 2, 4, 6, 8, 10, … of even numbers. Observe that we can write the term 2 as
2(1), 4 as 2(2), 6 as 2(3), and so on. Generally, we can write the terms in the sequence in the
form 2𝑛, where 𝑛 is a natural number. Thus, the formula for the 𝑛th term of this sequence is:

𝑎𝑛 = 2𝑛

Example 2:
Consider the sequence 4, 14, 30, 52, 80, 114. To find the 𝑛th term of the sequence, we have the
formula 𝑎𝑛 = 3𝑛2 + 𝑛. Thus, if we want to find the 20th term of the sequence, we simply
substitute 20 to the formula.
𝑎𝑛 = 3𝑛2 + 𝑛
𝑎20 = 3(202 ) + 20
𝑎20 = 3(400) + 20
𝑎20 = 1200 + 20
𝑎20 = 𝟏𝟐𝟐𝟎

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EXERCISE

• Predict the next term of each sequence.

1. 1, 7, 17, 31, 49, 71, _____

2. 10, 10, 12, 16, 22, 30, _____
3. 1, 4, 21, 56, 115, 204, _____
4. 0, 10, 24, 56, 112, 190, _____
5. 17, 15, 25, 53, 105, 187, _____

• Use the given 𝒏th term formula to compute the first ten terms of the sequence.

𝑛(2𝑛+1)
6. 𝑎𝑛 =
2

7. 𝑎𝑛 = 5𝑛2 − 3𝑛

𝑛
8. 𝑎𝑛 =
𝑛+1

• Determine the 𝒏th-term formula for the given sequences, then compute for the
50th term.

9. 1, 5, 11, 19, 29, …

10. 8, 15, 24, 35, 48, …

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V. Recreational Problems using Mathematics

KenKen® Puzzles

KenKen® is an arithmetic-based logic puzzle that was invented by the Japanese mathematics
teacher Tetsuya Miyamoto in 2004. The noun “ken” has “knowledge” and “awareness” as
synonyms. Hence, KenKen translates as knowledge squared, or awareness squared.

In recent years the popularity of KenKen has increased at a dramatic rate. More than a million
KenKen puzzle books have been sold, and KenKen puzzles now appear in many popular
newspapers, including the New York Times and the Boston Globe.

KenKen puzzles are similar to Sudoku puzzles, but they also require you to perform arithmetic
to solve the puzzle.
Rules for Solving a KenKen Puzzle

For a 3 by 3 puzzle, fill in each box (square) of the grid with one of the numbers 1,
2, or 3.
For a 4 by 4 puzzle, fill in each square of the grid with one of the numbers 1, 2, 3,
or 4.
For a n by n puzzle, fill in each square of the grid with one of the numbers 1, 2,
3,..., n.
Grids range in size from a 3 by 3 up to a 9 by 9.
• Do not repeat a number in any row or column.
• The numbers in each heavily outlined set of squares, called cages, must
combine (in some order) to produce the target number in the top left corner
of the cage using the mathematical operation indicated.
• Cages with just one square should be fi lled in with the target number.
• A number can be repeated within a cage as long as it is not in the same row or
column.

Here is a 4 by 4 puzzle and its solution. Properly constructed puzzles have a unique solution.

column 1 column 2 column 3 column 4

↓ ↓ ↓ ↓
𝟔× 𝟕+ 𝟔× 𝟕+
row 1 → 2 1 3 4
𝟐 𝟖× 𝟐 𝟖×
row 2 → 3 2 4 1
𝟒× 𝟏𝟐 × 𝟏− 𝟒× 𝟏𝟐 × 𝟏−
row 3 → 1 4 2 3
𝟏 𝟏
row 4 → 4 3 1 2

A 4 x 4 puzzle with 8 cages The solution to the puzzles

Basic Puzzle Solution Strategies

Single-Square Cages – Fill cages that consist of a single square with the target number for that
square. In the puzzle above, the cell in row 4, column 3 is filled with 1.

Cages with Two Squares – Next examine the cages with exactly two squares. Many cages that
cover two squares will only have two digits that can be used to fill the cage. For instance, a 5 ×
cage can only be filled with 1 and 5.
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Large or Small Target Numbers – Search for cages that have an unusually large or small target
number. These cages generally have only a few combinations of numbers that can be used to fill
the cage. For example, in a 5 by 5 puzzle, a 60 × cage with exactly 3 squares can only be filled
with 3, 4, and 5.

Duplicate Digit in a Cage – Consider the 4 + cage shown below. The digits 1, 1, and 2 produce a
sum of 4; however, we cannot place the two 1s in the same row or the same column. Thus the
only way to fill the squares is to place the 2 in the corner of the L-shaped cage as shown below.
Remember: A digit can occur more than once in a cage, provided that it does not appear in the
same row or in the same column.

𝟒+
2 1

Remember the Following Rules – In an 𝑛 by 𝑛 puzzle, each row and column must contain every
digit from 1 to 𝑛. In a two-square cage that involves subtraction or division, the order of the
numbers in the cage is not important. For instance, a 3 − cage with two squares could be filled
with 4 and 1 or with 1 and 4. A 3 ÷ cage with two squares could be filled with 3 and 1 or with 1
and 3.

Make a List of Possible Digits – For each cage, make a list of digits, with no regard to order, that
can be used to fill the cage. It’s like having a list of possibilities for later use.

Guess and Check – In most puzzles you will reach a point where you will need to just guess, then
try and see if it works. Assume that the possible digits in a particular cage are arranged in a
particular manner and then see where your assumption takes you. If you find that the remaining
part of a row or column cannot be filled in correctly, then you can eliminate your assumption
and proceed to check out one of the remaining possible numerical arrangements for that
particular cage.

A Famous Puzzle

The Tower of Hanoi is a puzzle invented by Edouard Lucas in 1883. The puzzle consists of three
pegs and a number of disks of distinct diameters stacked on one of the pegs such that the largest
disk is on the bottom, the next largest is placed on the largest disk, and so on as shown in the
next figure. The object of the puzzle is to transfer the tower to one of the other pegs. The rules
require that only one disk be moved at a time and that a larger disk may not be placed on a
smaller disk. All pegs may be used. Determine the minimum number of moves required to
transfer all of the disks to another peg for each of the following situations.

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There are many possible solutions of course. But what we need is to solve the problem with
minimum number of moves. First, label the pegs from left to right with A, B, and C. We follow the
following steps:

1. Transfer the yellow disk to

peg A
2. Transfer the pink disk to peg
C.

3. Transfer the yellow disk to

peg C.
4. Transfer the blue disk to peg
A.

5. Transfer the yellow disk to

peg B.
6. Transfer the pink disk to peg
A.

7. Finally, transfer the yellow

disk to peg A.

The puzzle can be played with any number of disks, although many toy revisions have around 7
to 9 of them. The minimal number of moves required to solve a Tower of Hanoi puzzle is 2𝑛 − 1,
where 𝑛 is the number of disks.

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EXERCISE

• The Galton Board

The Galton Board is designed such that when a ball falls on a vertex of one of the hexagons, it is
equally likely to fall to the left or to the right. As the ball continues its downward path, it strikes
a vertex of a hexagon in the next row, where the process of falling to the left or to the right is
repeated. After the ball passes through all the rows of hexagons, it falls into one of the bins at
the bottom. For each hexagon, determine the number of different routes that a ball can take
from that point to the top of the board. Summarize the experiment and what can you conclude
about the numbers in the hexagons?

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PROBLEM SET

• Solve each problem Polya’s and any other strategies. Label your work so that each
of Polya’s four steps is identified.

1. A rancher decides to enclose a rectangular region by using an existing fence along one
side of the region and 2240 feet of new fence on the other three sides. The rancher
wants the length of the rectangular region to be five times as long as its width. What will
be the dimensions of the rectangular region?

2. If 15 people greet each other at a meeting by shaking hands with one another, how many
handshakes will take place?

3. Nonie, Louise, Eduard, and Mark are attending Southern Luzon State University (SLSU).
One student is a computer science major, one is chemistry major, one is a business
major, and one is biology major. From the following clues, determine which major each
student is pursuing.
a. Nonie and the computer science major are next door neighbors.
b. Louise and the chemistry major have attended SLSU for 2 years, Eduard has
attended SLSU for 3 years, and the biology major has attended SLSU for 4 years.
c. Mark has attended SLSU for fewer years than Nonie.
d. The business major has attended SLSU for 2 years.

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• Determine whether the argument is an example of inductive reasoning or

deductive reasoning.

4. Samantha got an A on each of her fi rst four math tests, so she will get an A on the next
math test.

5. All amoeba multiply by dividing. I have named the amoeba shown in my microscope
Amelia. Therefore, Amelia multiplies by dividing.

• Find a counterexample to show that the following conjecture is false.

6. For all numbers 𝑥, (𝑥 + 4)2 = 𝑥 2 + 16

𝑛3 +5𝑛+6
7. For all counting numbers 𝑛, is an even counting number.
6

• Predict the next term of each sequence.

8. 5, 6, 3, −4, −15, −30, −49, _____

9. 2, 0, −18, −64, −150, −288, −490, _____

10. A sequence has an 𝑛th term formula of 𝑎𝑛 = 4𝑛2 − 𝑛 − 2.

Use this formula to determine the first ten terms of the sequence and the 20th term of
the sequence.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

• Solve the following problems.

11. A diagonal of a polygon is a line segment that connects nonadjacent vertices (corners) of
the polygon. In the following polygons, the diagonals are shown by the red line
segments.

Triangle Square Pentagon

3 sides 4 sides 5 sides
0 diagonal 2 diagonals 5 diagonals
Predict the number of diagonals in a) a hexagon, b) a heptagon, and c) an octagon.

12. In how many different ways can a basketball team win exactly four out of their last six
games?

13. A student has noticed the following pattern:

91 = 9 has 1 digit
92 = 81 has 2 digits
93 = 729 has 3 digits
.
.
.
9 = 3,486,784,401 has 10 digits.
10

a. Find the smallest natural number 𝑛 such that the number of digits in the decimal
expansion of 9𝑛 is not equal to 𝑛.
b. A professor indicates that you can receive five extra points if you write all of the
9
digits in the decimal expansion of 99 . Is this a worthwhile project? Explain.

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14. Sudoku is a deductive reasoning, number placement puzzle. The object in a 6 by 6 mini-
Sudoku puzzle is to fill all empty squares so that the counting numbers 1 to 6 appear
exactly once in each row, each column, and each of the 2 by 3 regions, which are
delineated by the thick line segments. Solve the following 6 by 6 mini-Sudoku puzzle.

6 2 5
4 3
6 5 4
1 3
1 6 2 5
4 1 6

15. A palindromic number is a whole number that remains unchanged when its digits are
written in reverse order. Find all palindromic numbers that have exactly
a. three digits and are the square of a natural number.
b. four digits and are the cube of a natural number.

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

REFERENCES

Aufmann, Richard N., et al. Mathematical Excursions, 3rd ed., Cengage Learning, 2013.

Earnhart, Richard T., & Adina, Edgar M., Mathematics in the Modern World, Outcome-Based
Module, C&E Publishing, Inc., 2018.

Petkovic, Miodrag, Famous Puzzles of Great Mathematicians, AMS Bookstore, 2009.

https://static2.bigstockphoto.com/0/3/1/large1500/130158797.jpg

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GEC 05: Mathematics in the Modern World 1st Semester 2020-21

Module 4
MATHEMATICS OF FINANCE

“Every problem has a solution. You just have to be creative enough to find it.”
- Travis Kalanick

INTRODUCTION

Everybody uses money. Sometimes you work for your money and other times your money
works for you. For example, unless you are attending college on a full scholarship, it is very
likely that you and your family have either saved money or borrowed money, or both, to pay for
your education. When we borrow money, we normally have to pay interest for that privilege.
When we save money, for a future purchase or retirement, we are lending money to a financial
institution and we expect to earn interest on our investment. In this module, we will go into
other pace of mathematics that will make you understand better the principles of borrowing
and saving. These ideas will then be used to compare different financial opportunities and make
informed decisions.

LEARNING OUTCOMES

At the end of this module, students should be able to:

1. compute the interest on loans or investments;
2. solve the maturity value of loans and future value of investments and monthly payments
on consumer loans; and
3. explain the advantages and disadvantages of investments in stocks, bonds and mutual
funds.

DISCUSSION

I. Simple and Compound Interest

When you deposit money in a bank in a savings account you are allowing the bank to use your
money. The bank may lend the deposited money to customers to buy cars or make renovations
on their homes. The bank pays you for the privilege of using your money. The amount paid to
you is called interest. If you are the one borrowing money from a bank, the amount you pay for
the privilege of using that money is also called interest.

The amount deposited in a bank or borrowed from a bank is called the principal. The amount of
interest paid is usually given as a percent of the principal. The percent used to determine the
amount of interest is called the interest rate. If you deposit P1,000 in a savings account paying
5% interest per year, P1,000 is the principal and the annual interest rate is 5%.

Simple Interest

Interest paid on the original principal is called simple interest. The formula used to calculate
simple interest is
𝐼 = 𝑃𝑟𝑡
where 𝐼 is the interest, 𝑃 is the principal, 𝑟 is the interest rate, and 𝑡 is the time period.

In the simple interest formula, the time t is expressed in the same period as the rate. For
example, if the rate is given as an annual interest rate, then the time is measured in years; if the
rate is given as a monthly interest rate, then the time must be expressed in months.
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Interest rates are most commonly expressed as annual interest rates. Therefore, unless stated
otherwise, we will assume the interest rate is an annual interest rate. Interest rates are
generally given as percent. Before performing calculations involving an interest rate, write the
interest rate as a decimal.

Example 1:
Calculate the simple interest earned in 1 year on a deposit of P1,000 if the interest rate is 5%.

Solution:
Use the simple interest formula. Substitute the following values into the formula.
𝑃 = 1000, 𝑟 = 5% = 0.05, and 𝑡 = 1

𝐼 = 𝑃𝑟𝑡
𝐼 = 1000(0.05)(1)
𝐼 = 50
The simple interest earned is P50.

Example 2:
Calculate the simple interest due on a 3-month loan of P2,000 if the interest rate is 6.5%.

Solution:
Use the simple interest formula. Substitue the values 𝑃 = 2000 and 𝑟 = 6.5% = 0.065 into the
formula. Because the interest rate is an annual rate, the time must be measured in years:
3 𝑚𝑜𝑛𝑡ℎ𝑠 3 𝑚𝑜𝑛𝑡ℎ𝑠 3
𝑡= = = .
1 𝑦𝑒𝑎𝑟 12 𝑚𝑜𝑛𝑡ℎ𝑠 12

𝐼 = 𝑃𝑟𝑡
3
𝐼 = 2,000(0.065) ( )
12
𝐼 = 32.5
The simple interest due is P32.50.

Example 3:
The simple interest charged on a 6-month loan of P3,000 is P150. Find the simple interest rate.

Solution:
Use the simple interest formula, solving the equation for 𝑟. (Or, you may choose the derive the
formula for 𝑟 from the original formula, then substitute.)

𝐼 = 𝑃𝑟𝑡
6
150 = 3000(𝑟) ( )
12
150 = 1500𝑟
0.10 = 𝑟

The simple interest rate on the loan is 10%.

There are two methods for converting time from days to years: the exact method and the
ordinary method. Using the exact method, the number of days of the loan is divided by 365, the
number of days in a year.
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑎𝑦𝑠
𝑡=
365

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The ordinary method is based on there being an average of 30 days in a month and 12 months
in a year (30 × 12 = 360). Using this method, the number of days of the loan is divided by 360.

𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑎𝑦𝑠
𝑡=
360

The ordinary method is used by most businesses. Therefore, unless otherwise stated, the
ordinary method will be used in this text.

Future Value and Maturity Value

When you borrow money, the total amount to be repaid to the lender is the sum of the principal
and interest. This sum is calculated using the following future value or maturity value formula
for simple interest:
𝐴 =𝑃+𝐼

where 𝐴 is the amount after the interest, 𝐼, has been added to the principal, 𝑃.

This formula can be used for loans or investments. When used for a loan, 𝐴 is the total amount
to be repaid to the lender; this sum is called the maturity value of the loan. In the previous
example (Example 3), the simple interest charged on the loan of P3000 was P150. The maturity
value of the loan is therefore P3000 + P150 = P3150.

For an investment, such as a deposit in a bank savings account, A is the total amount on deposit
after the interest earned has been added to the principal. This sum is called the future value of
the investment.

Is the stated sum a maturity value or a future value?

• The sum of the principal and the interest on an investment is called future value.
• The sum of the principal and the interest on a loan is called maturity value.

Example 1:
Calculate the maturity value of a simple interest, 8-month loan of P8000 if the interest rate is
9.75%.

Solution:
Step 1: Find the interest using the simple interest formula. Subsitute the values 𝑃 = 8000, 𝑟 =
8
9.75% = 0.0975, and 𝑡 = into the formula.
12

𝐼 = 𝑃𝑟𝑡
8
𝐼 = 8000(0.0975) ( )
12
𝐼 = 520

Step 2: Find the maturity value using the maturity value formula for simple interest. Substitue
the value 𝑃 = 8000 and 𝐼 = 520 into the formula.

𝐴 =𝑃+𝐼
𝐴 = 8000 + 520
𝐴 = 8520

The maturity of the loan is P8,520.

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Recall that the simple interest formula states that 𝐼 = 𝑃𝑟𝑡. We can substitute 𝑃𝑟𝑡 for 𝐼 in the
future or maturity value formula, as follows:

𝐴 =𝑃+𝐼
𝐴 = 𝑃 + 𝑃𝑟𝑡
𝑨 = 𝑷(𝟏 + 𝒓𝒕)

Example 2:
Calculate the maturity value of a simple interest, 3-month loan of P3,800. The interest rate is
6%.

Solution:
Substitute the following values into the formula 𝐴 = 𝑃(1 + 𝑟𝑡); 𝑃 = 3800, 𝑟 = 6% = 0.06, and
3
𝑡= .
12

𝐴 = 𝑃(1 + 𝑟𝑡)
3
𝐴 = 3800 [1 + 0.06 ( )]
12
𝐴 = 3800(1 + 0.015)
𝐴 = 3800(1.015)
𝐴 = 3857

The maturity value of the loan is P3,857.

Example 3:
Find the future value 1 year of P850 in an account earning 8.2% simple interest.

Solution:
𝐴 = 𝑃(1 + 𝑟𝑡)
𝐴 = 850[1 + 0.082(1)]
𝐴 = 850(1.082)
𝐴 = 919.7

The future value of the account after 1 year is P919.70.

Compound Interest

Simple interest is generally used for loans of 1 year or less. For loans of more than 1 year, the
interest paid on the money borrowed is called compound interest. Compound interest is
interest calculated not only on the original principal, but also on any interest that has already
been earned.

To illustrate compound interest, suppose you deposit P1,000 in a savings account earning 5%
interest, compounded annually (once a year). During the fi rst year, the interest earned is
calculated as follows.
𝐼 = 𝑃𝑟𝑡
𝐼 = 1000(0.05)(1)
𝐼 = P 50

At the end of the first year, the total amount in the account is:

𝐴 =𝑃+𝐼
𝐴 = 1000 + 50
𝐴 = P 1,050

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During the second year, the interest earned is calculated using the amount in the account at the
end of the first year.
𝐼 = 𝑃𝑟𝑡
𝐼 = 1050(0.05)(1)
𝐼 = P 52.50

Note that the interest earned during the second year (P52.50) is greater than the interest
earned during the first year (P50). This is because the interest earned during the first year was
added to the original principal, and the interest for the second year was calculated using this
sum. If the account earned simple interest rather than compound interest, the interest earned
each year would be the same (P50).

At the end of the second year, the total amount in the account is the sum of the amount in the
account at the end of the first year and the interest earned during the second year. The interest
earned during the third year is calculated using the amount in the account at the end of the
second year (P1102.50). The interest earned each year keeps increasing. This is the effect of
compound interest.

In that example, the interest is compounded annually. However, compound interest can be
compounded semiannually (twice a year), quarterly (four times a year), monthly, or daily. The
frequency with which the interest is compounded is called the compounding period. The
solution that we did to compute for the compund interest is tedious. We will use a formula that
will shorten the process in finding the compound amount and compound interest. The
compound amount formula is
𝑟 𝑛𝑡
𝐴 = 𝑃 (1 + )
𝑛

where 𝐴 is the compound amount, 𝑃 is the amount of money deposited, 𝑟 is the annual interest
rate, 𝑛 is the number of compounding periods per year, and 𝑡 is the number of years.

Values of 𝒏 (Number of Compounding Periods per Year)

If interest is compounded Then 𝒏 is
annually 1
semiannually 2
quarterly 4
monthly 12
daily 360

Recall that the future value of an investment is the value of the investment after the original
principal has been invested for a period of time. In other words, it is the principal plus the
interest earned. Therefore, it is the compound amount 𝐴 in the compound amount formula.

Example:
Calculate the compound amount when P10,000 is deposited in an account earning 8% interest,
compounded semiannually, for 4 years.

Solution:
Use the compund amount formula with 𝑃 = 10,000, 𝑟 = 8% = 0.08, 𝑛 = 2, and 𝑡 = 4.

𝑟 𝑛𝑡
𝐴 = 𝑃 (1 + )
𝑛
0.08 2(4)
𝐴 = 10000 (1 + )
2
𝐴 = 1000(1 + 0.04)8
𝐴 = 10000(1.04)8
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𝐴 ≈ 10000(1.368569)
𝐴 ≈ 13,685.69

The compound amound after 4 years is approximately P13,685.69.

Present Value

The present value of an investment is the original principal invested, or the value of the
investment before it earns any interest. Therefore, it is the principal, 𝑃, in the compound
amount formula. Present value is used to determine how much money must be invested today
in order for an investment to have a specific value at a future date. The present value formula is

𝐴
𝑃=
𝑟 𝑛𝑡
(1 + )
𝑛

where 𝑃 is th original principal invested. 𝐴 is the compound amount, 𝑟 is the annual interest
rate, 𝑛 is the number of compounding periods per year, and 𝑡 is the number of years.

Example 1:
How much money should be invested in an account that earns 8% interest, compounded
quarterly, in order to have P30,000 in 5 years?

Solution:
Use the present value formula with 𝐴 = 30,000, 𝑟 = 8% = 0.08, 𝑛 = 4, 𝑡 = 5

𝐴
𝑃= 𝑟 𝑛𝑡
(1+ )
𝑛
30000
𝑃= 0.08 4(5)
(1+ )
4

30,000
𝑃= 1.0220

30,000
𝑃 ≈ 1.485947396

𝑃 ≈ 20,189.14

P20,189.14 should be invested in the account in order to have P30,000 in 5 years.

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EXERCISE

Answer the following.

1. Calculate the simple interest due on a 4-month loan of P1500 if the interest rate is
5.25%.

2. Calculate the simple interest due on a 5-month loan of P700 if the interest rate is
1.25% per month.

3. Calculate the simple interest due on a 120-day loan of P7000 if the annual interest
rate is 5.25%.

4. The simple interest charged on a 6-month loan of P12,000 is P462. Find the simple
interest rate.

5. Calculate the maturity value of a simple interest, 9-month loan of P4000 if the
interest rate is 8.75%.

6. Calculate the maturity value of a simple interest, 1-year loan of P6700. The interest
rate is 8.9%.

7. Find the future value after 1 year of P680 in an account earning 6.4% simple
interest.

8. The maturity value of a 4-month loan of P9000 is P9240. What is the simple interest
rate?

9. Calculate the compound amount when P4000 is deposited in an account earning 6%

interest, compounded monthly, for 2 years.

10. Calculate the future value of P2500 earning 9% interest, compounded daily, for 4
years.

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II. Credit Cards and Consumer Loans

When a customer uses a credit card to make a purchase, the customer is actually receiving a
loan. Therefore, there is frequently an added cost to the consumer who purchases on credit.
This added cost may be in the form of an annual fee or interest charges on purchases. A finance
charge is an amount paid in excess of the cash price; it is the cost to the customer for the use of
credit.

Most credit card companies issue monthly bills. The due date on the bill is usually 1 month after
the billing date (the date the bill is prepared and sent to the customer). If the bill is paid in full
by the due date, the customer pays no finance charge. If the bill is not paid in full by the due
date, a finance charge is added to the next bill.

Suppose a credit card billing date is the 10th day of each month. If a credit card purchase is
made on April 15, then May 10 is the billing date (the 10th day of the month following April).
The due date is June 10 (one month from the billing date). If the bill is paid in full before June 10,
no finance charge is added. However, if the bill is not paid in full, interest charges on the
outstanding balance will start to accrue (be added) on June 10, and any purchase made after
June 10 will immediately start accruing interest.

The most common method of determining finance charges is the average daily balance
method. Interest charges are based on the credit card’s average daily balance, which is
calculated by dividing the sum of the total amounts owed each day of the month by the number
of days in the billing period.

sum of the total amounts owed each day of the month

𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐝𝐚𝐢𝐥𝐲 𝐛𝐚𝐥𝐚𝐧𝐜𝐞 =
number or days in the billing period

Example:
Suppose an unpaid bill for P315 had a due date of April 10. A purchase of P28 was made on
April 12, and P123 was charged on April 24. A payment of P50 was made on April 15. The next
billing date is May 10. The interest on the average daily balance is 1.5% per month. Find the
finance charge on the May 10 bill.

Solution:
To find the finance charge, first prepare a table showing the unpaid balance for each purchase,
the number of days the balance is owed, and the product of these numbers. A negative sign in
the Payments or Purchases column of the table indicates that a payment was made on that date.

Number of days Unpaid balance

Payments or Balance each
Date until balance times number of
purchases day
changes days
April 10-11 P 315 2 P 630
April 12-14 P 28 P 343 3 P 1029
April 15-23 − P 50 P 293 9 P 2637
April 24 – May 9 P 123 P 416 16 P 6656
Total P 10, 952

The sum of the total amounts owed each day of the month is P10,952. To find the average daily
balance,
sum of the total amounts owed each day of the month
Average daily balance =
number of days in the billing period
10,952
= ≈ 365.07
30

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To find the finance charge,

𝐼 = 𝑃𝑟𝑡
𝐼 = 365.07(0.015)(1)
𝐼 ≈ 5.48

The finance charge on the May 10 bill is P 5.48.

Annual Percentage Rate

It is required that credit customers be made aware of the cost of credit. The true annual interest
rate, also called the annual percentage rate (APR) or annual percentage yield (APY), is the
effective annual interest rate on which credit payments are based.

Example:
Suppose you decide to borrow P 2400 from a bank that advertises a 10% simple interest rate.
You want a 6-month loan and agree to repay the loan in six equal monthly payments.

6
The simple interest due on the loan is 𝐼 = 𝑃𝑟𝑡 = 2400(0.10) ( ) = P 120.
12
The total amount to be repaid to the banks is 𝐴 = 𝑃 + 𝐼 = 2400 + 120 = P 2,520.
2520
The amount of each monthly payments is: Monthly payment = = P 420.
6
During the first month you owe P2400.
1
The interest on that amount is 𝐼 = 2400(0.10) ( ) = 𝑃20.
12

At the end of the first month, of the P 420 payment you make, P 20 is the interest payment and
P400 is applied to reducing the loan. Therefore, during the second month you owe 𝑃2400 −
1
P400 = P2000. The interest on that amount is 𝐼 = 𝑃𝑟𝑡 = 2000(0.10) ( ) ≈ 16.667 = 𝑃 16.67.
12

At the end of the second month, of the P420 payment you make, P16.67 is the interest payment
and P403.33 is applied to reducing the loan. Therefore, during the third month you owe
𝑃2000 − 𝑃403.33 = 𝑃1596.67.

The point of these calculations is to demonstrate that each month the amount you owe is
decreasing, and not by a constant amount. From our calculations, the loan decreased by P400
the first month and by P403.33 the second month.

The interest rate for a loan is calculated only on the amount owed at a particular time, not on
the original amount borrowed. All loans must be stated according to this standard, thereby
making it possible for a consumer to compare different loans.

The annual percentage rate (APR) of a simple interest rate loan can be approximated by

2𝑛𝑟
APR ≈
𝑛+1

where 𝑛 is the number of payments and 𝑟 is the simple interest rate.

Example:
For the loan described above, 𝑛 = 6 and 𝑟 = 10% = 0.10.

2𝑛𝑟
APR =
𝑛+1
2(6)(0.10) 1.2
APR ≈ = ≈ 0.171
6+1 7
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Consumer Loans: Calculating Monthly Payments

The stated interest rate for most consumer loans, such as a car loan, is normally the annual
percentage rate, APR. The payment amount for these loans is given by the following formula

𝑟
𝑃𝑀𝑇 = 𝐴 ( 𝑛 )
𝑟 −𝑛𝑡
1 − (1 + )
𝑛

where 𝑃𝑀𝑇 is the payment, 𝐴 is the loan amount, 𝑟 is the annual interest rate, 𝑛 is the number of
payments per year, and 𝑡 is the number of years.

Example:
Integrated Visual Technologies is offering anyone who purchases a television an annual interest
rate of 9.5% for 4 years. If Andrea Smyer purchases a 50-inch television for P5995 from
Integrated Visual Technologies, find her monthly payment.

Solution:
Use the formula using 𝐴 = 5995, 𝑟 = 9.5% = 0.095, 𝑛 = 12, and 𝑡 = 4.

𝑟
𝑃𝑀𝑇 = 𝐴 ( 𝑛 )
𝑟 −𝑛𝑡
1 − (1 + )
𝑛

0.095
𝑃𝑀𝑇 = 5995 ( 12 )
0.095 −12(4)
1 − (1 + )
12

𝑃𝑀𝑇 ≈ 150.61

The monthly payment is P 150.61.

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EXERCISE

Answer the following.

1. A bill for P1024 was due on July 1. Purchases of P315 were made on July 7, and P410
was charged on July 22. A payment of P400 was made on July 15. The interest on the
average daily balance is 1.2% per month. Find the finance charge on the August 1 bill.

2. You purchase a washing machine and dryer for P750. You pay 20% down and agree to
repay the balance in 12 equal monthly payments. The finance charge on the balance is
8% simple interest.
a. Find the finance charge.
b. Estimate the annual percentage rate. Round to the nearest tenth of a percent.

3. Carlos Menton purchases a new laptop computer from Knox Computer Solutions for
P1499. If the sales tax is 4.25% of the purchase price and Carlos finances the total cost,
including sales tax, for 3 years at an annual interest rate of 8.4%, find the monthly
payment.

4. A school superintendent purchases a new sedan for P26,788.

a. If the sales tax is 5.25% of the purchase price, fi nd the amount of the sales tax.
b. The superintendent makes a P2500 down payment and the license fee is P145.
Find the amount the superintendent must fi nance.
c. Assuming the superintendent gets the loan in part b at an annual interest rate of
8.1% for 5 years, determine the superintendent’s monthly car payment.

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III. Stocks, Bonds, and Mutual Funds

Stocks

Stocks, bonds, and mutual funds are investment vehicles, but they differ in nature. When owners
of a company want to raise money, generally to expand their business, they may decide to sell
part of the company to investors. An investor who purchases a part of the company is said to
own stock in the company. Stock is measured in shares; a share of stock in a company is a
certificate that indicates partial ownership in the company. The owners of the certificates are
called stockholders or shareholders. As owners, the stockholders share in the profits or losses of
the corporation.

A company may distribute profits to its shareholders in the form of dividends. A dividend is
usually expressed as a per-share amount—for example, P0.07 per share.

Example 1:
A stock pays an annual dividend of P0.84 per share. Calculate the dividends paid to a
shareholder who has 200 shares of the company’s stock.

Solution:
The computation is as follows: (P 0.84 per share) × (200 shares) = P 168. Therefore, the stake
holder receive P 168 in dividends.

The dividend yield, which is used to compare companies’ dividends, is the amount of the
dividend divided by the stock price and is expressed as a percent. Determining a dividend yield
is similar to calculating the simple interest rate earned on an investment. You can think of the
dividend as the interest earned, the stock price as the principal, and the yield as the interest
rate.

Example 2:
A stock pays an annual dividend of P 1.75 per share. The stock is trading at P 70. Find the
dividend yield.

Solution:
We use the formula for the interest where 𝐼 is the annual dividend, 𝑃 is the stock price and the
time is 1 year.
𝐼 = 𝑃𝑟𝑡
1.75 = 70𝑟(1)
1.75 = 70𝑟
0.025 = 𝑟
The dividend yield is 2.5%.

The market value of a share of stock is the price for which a stockholder is willing to sell a
share of the stock and a buyer is willing to purchase it. Shares are always sold to the highest
bidder. A brokerage firm is a dealer of stocks that acts as your agent when you want to buy or
sell shares of stock. The brokers in the firm charge commissions for their service. Most trading
of stocks happens on a stock exchange. Stock exchanges are businesses whose purpose it is to
bring together buyers and sellers of stock.

Example 3:
Suppose you owned 500 shares of stock in a certain company. You purchased the shares at a
price of P52.41 per share and sold them at the closing price of the stock at P61.68.
a. Ignoring dividends, what was your profit or loss on the sale of the stock?
b. If your broker charges 2.4% of the total sale price, what was the broker’s commission?

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Solution:
a. The selling price per share was P61.68. The selling price per share is greater than the
purchase price per share. You made a profit on the sale of the stock.

Profit = selling price − purchase price

= 500(61.68) − 500(52.41)
= 30,840 − 26,205
= 4,635

The profit on the sale of the stock was P 4,635.

b. Commision = 2.4%(selling price)

= 0.024(30,840)
= P 740.16

The broker’s commission was P 740.16.

Bonds

When a corporation issues stock, it is selling part of the company to the stock-holders. When it
issues a bond, the corporation is borrowing money from the bondholders; a bondholder lends
money to a corporation. Corporations, government agencies, states, and cities all issue bonds.
These entities need money to operate, for example, to fund the government deficit, repair roads,
or build a new factory, so they borrow money from the public by issuing bonds.

Bonds are usually issued in units of P 1000. The price paid for the bond is the face value. The
issuer promises to repay the bondholder on a particular day, called the maturity date, at a given
rate of interest, called the coupon.

Assume that a bond with a P 1000 face value has a 5% coupon and a 10-year maturity date. The
bondholder collects interest payments of P50 in each of those 10 years. The payments are
calculated using the simple interest formula, as follows: 𝐼 = 𝑃𝑟𝑡 = 1000(0.05)(1) = 50. At the
end of the 10-year period, the bondholder receives from the issuer the P1000 face value of the
bond.

Mutual Funds

An investment trust is a company whose assets are stocks and bonds. The purpose of these
companies is not to manufacture a product but to purchase stocks and bonds with the hope that
their value will increase. A mutual fund is an example of an investment trust.

When investors purchase shares in a mutual fund, they are adding their money to a pool along
with many other investors. The investments within a mutual fund are called the fund’s portfolio.
The investors in a mutual fund share the fund’s profits or losses from the investments in the
portfolio.

An advantage of owning shares of a mutual fund is that your money is managed by full-time
professionals whose job it is to research and evaluate stocks; you own stocks without having to
choose which individual stocks to buy or to decide when to sell them. Another advantage is that
by owning shares in the fund, you have purchased shares of stock in many different companies.
This diversification helps to reduce some of the risks of investing.

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Because a mutual fund owns many different stocks, each share of the fund owns a fractional
interest in each of the companies. Each day, the value of a share in the fund, called the net asset
value of the fund, or NAV, depends on the performance of the stocks in the fund. The net asset
value of a mutual fund is given by the formula:

𝐴−𝐿
𝑁𝐴𝑉 =
𝑁

where 𝐴 is the total fund assets, 𝐿 is the total fund liabilities, and 𝑁 is the number of shares
outstanding.

Example:
A mutual fund has P 600 million worth of stock, P 5 million worth of bonds, and P 1 million in
cash. The fund’s total liabilities amount to P 2 million. There are 25 million shares outstanding.
You invest P 15,000 in this fund.
a. Calculate the NAV.
b. How many shares will you purchase?

Solution:
1. Use the formula for 𝑁𝐴𝑉 with 𝐴 = 600 + 5 + 1 = 606 million, 𝐿 = 2 million, and
𝑁 = 25 million.

𝐴 − 𝐿 606 million − 2 million

𝑁𝐴𝑉 = = = 24.16
𝑁 25 million

The NAV of the fund is P 24.16.

2. Divide the amount invested by the cost per share of the fund. Round down to the
nearest whole number.
15,000
≈ 620
24.16

You will purchase 620 shares of the mutual fund.

EXERCISE

Answer the following.

1. A stock pays an annual dividend of P0.72 per share. Calculate the dividends paid to a
shareholder who has 550 shares of the company’s stock.

2. A stock pays an annual dividend of P0.82 per share. The stock is trading at P51.25.
Find the dividend yield.

3. Suppose you bought 300 shares of Krispy Kreme Doughnuts at the 52-week low and
sold the shares at the 52-week high and sold them at the closing price of the stock at
P7.44.
a. Ignoring dividends, what was your profit or loss on the sale of the stock?
b. If your broker charges 2.1% of the total sale price, what was the broker’s
commission? Round to the nearest cent.

4. A bond has a P15,000 face value, a 4-year maturity, and a 3.5% coupon. What is the
total of the interest payments paid to the bondholder?

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5. A mutual fund has P750 million worth of stock, P750,000 in cash, and P1,500,000 in
other assets. The fund’s total liabilities amount to P1,500,000. There are 20 million
shares outstanding. You invest P10,000 in this fund.
a. Calculate the NAV.
b. How many shares will you purchase?

REFERENCES

Aufman,Richard N.,et al,(2013), Mathematical Excursions. 3rd ed.,Brookes/Cole, Cengage

Learning

Medallon, Merlita C. et al (2018), Mathematics in the Modern World, Mindshapers Co., Inc.

Reyes, Juan Apolinario C. (2019), Mathematics in the Modern World, Unlimited Books Library
Services & Publishing Inc.

Sirug, Winston, (2018), Mathematics in the Modern World, Mindshapers Co.,Inc.

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Module 5
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“Quote.”
- Writer

INTRODUCTION

Introduction

LEARNING OUTCOMES

At the end of this module, students should be able to:

1. outcomes
2. outcomes
3. outcomes

DISCUSSION

I. First Topic

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