JOMO KENYATTA UNIVERSITY

OF
AGRICULTURE & TECHNOLOGY

SCHOOL OF OPEN, DISTANCE &

eLEARNING
IN COLLABORATION WITH
SCHOOL OF HUMAN RESOURCE
MANAGEMENT

DEPARTMENT OF COMMERCE

HBC 2110 MANAGEMENT MATHEMATICS I

P.O. Box 62000, 00200

Nairobi, Kenya
E-mail: [email protected]
HBC 2110 MANAGEMENT MATHEMATICS I
Course description
Set theory: sets, elements, venn diagrams, operations on sets, set enumeration.
Functions; inequalities, linear functions, quadratic equations, polynomials, higher
order functions, exponential functions, logarithmic functions, limits and continuity.
Simultaneous equations, series and mathematics of finance, arithmetic series, ge-
ometric series, progression series, time value of money, investment appraisal and
annuities.

Course aims
The overall aim of this module is to enable students to develop mathematical skills
and principles for application to real world problems e.g in bussiness. The level of
coursework assumes that you have basic foundation in Mathematics.

Learning outcomes
Upon completion of this course you should be able to;

1. Use standard rules to find derivatives of functions and apply differentiation to

real life problem

2. Determine roots of quadratic functions, and solve exponential and logarithms

of these functions in order to solve business and economic problems.

3. Use mathematics in analysis of some business problems

Instruction methodology
• Lectures and tutorials

• Case studies

• Journal articles

Introductory Remarks
Welcome to the module HBC 2110 MANAGEMENT MATHEMATICS I. This
module will involve some interactive sessions with assumption that you are self

ii
driven and motivated to learn with a standard level of ICT skills. You will be ex-
pected to attempt some quizzes whose answers are embedded on the file and so
printing may not be necessary.

Assessment information
The module will be assessed as follows;

• 10% of marks from two (2) assignments

• 20% of marks from one written CAT to be administered at JKUAT main cam-
pus or one of the approved centers

• 70% of marks from written Examination to be administered at JKUAT main

campus or one of the approved centers

Course Text Books

1. Mathematics for Science by Uppal, S. M. and H. M. Humphreys. New Age

International, India, 1996. 2. L. Bostock and S. Chandler

2. Calculus with Analytic Geometry (4th Edition) by Edwards and Penney

3. Understanding Calculus by Faraz Hussain (Freely available online)

4. Online calculus book by Paul Dawkins

5. S.O.S. Mathematics (1999-2013) by MathMedics, LLC.

Course Journals

1. Journal of Mathematics

2. Calculus live Journal

iii
Contents

1 Set Theory 1
1.1 Aims and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Sets and elements . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Further set concepts . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.4 Venn Diagrams . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
• Complement of a set . . . . . . . . . . . . . . . . 8

2 set enumeration 10
2.1 Set enumeration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2 Solving enumeration Problems Using Venn Diagrams . . . . . . . . 11

3 FUNCTIONS 15
3.1 Functions and graphs . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.2 Equations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.3 Linear simultaneous equations: . . . . . . . . . . . . . . . . . . . 17
3.4 quadratic equations . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.4.1 Properties of quadratic equations and Functions . . . . . . . 23
3.4.2 solution to quadratic equation . . . . . . . . . . . . . . . . 24
3.4.3 Solution by Factorization . . . . . . . . . . . . . . . . . . . 25
3.4.4 Solution by Completing the Square . . . . . . . . . . . . . . 26
3.4.5 Solution by Quadratic Formula . . . . . . . . . . . . . . . 27
3.5 Application in business . . . . . . . . . . . . . . . . . . . . . . . . 28

4 Other functions 34
4.1 introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
4.2 Logarithmic Functions . . . . . . . . . . . . . . . . . . . . . . . . 34
4.3 logarithms rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

iv
CONTENTS CONTENTS

4.4 Polynomials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

5 Inequalities 40
5.1 introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
5.2 Solutions of in-equations . . . . . . . . . . . . . . . . . . . . . . . 40
5.3 Rules for solving linear in equations . . . . . . . . . . . . . . . . . 41
5.4 Linear in-equation in two variables: relations . . . . . . . . . . . . 44

6 Sequences And Series 48

6.1 Aims and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . 49
6.2 Sequence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
6.3 Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
6.4 Progression . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
6.5 Arithmetic Progression (AP) . . . . . . . . . . . . . . . . . . . . . 49
6.5.1 Sum of the First n terms of an A.P . . . . . . . . . . . . . . 50
6.6 Geometric Progression (GP) . . . . . . . . . . . . . . . . . . . . . 51

7 Limits, Continuity and Differentiability 54

7.1 LIMITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
7.2 CONTINUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

8 Continuations of continuous functions 59

8.1 THE DERIVATIVE OF A FUNCTION . . . . . . . . . . . . . . . 61

9 Basic Differentiation rules 63

10 Power rule for derivatives 69

10.1 Power rule for derivatives . . . . . . . . . . . . . . . . . . . . . . . 69
10.2 Derivatives of a Product with a Constant . . . . . . . . . . . . . . . 69
10.3 Time value of money and its role in project appraisal . . . . . . . . 70
10.3.1 Future Value . . . . . . . . . . . . . . . . . . . . . . . . . . 71
10.3.2 Present Value . . . . . . . . . . . . . . . . . . . . . . . . . 72
Solutions to Exercises . . . . . . . . . . . . . . . . . . . . . . . . . 74

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HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 1
Set Theory

Learning outcomes
Upon completing this topic, you should be able to have basic concepts in:

• Set Theory,

• Describing sets, elements,

• Venn diagrams and the union and intersection of sets.

1.1. Aims and Objectives

This Lesson introduces some basic concepts in Set Theory, describing sets, ele-
ments, Venn diagrams and the union and intersection of sets.

1.2. Sets and elements

Sets of objects, numbers, departments, job descriptions, etc. are things that we all
deal with every day of our lives. Mathematical Set Theory just puts a structure
around this concept so that sets can be used or manipulated in a logical way. The
type of notation used is a reasonable and simple one. For example, suppose a
company manufactured 5 different products a, b, c, d, and e. Mathematically, we
might identify the whole set of products as P, say, and write:
P = (a, b, c, d, e)which is translated as the set of company products, P, consists of
the members (or elements) a, b, c, d and e.
The elements of a set are usually put within braces (curly brackets) and the elements
separated by commas, as shown for set P above.
A mathematical set is a collection of distinct objects, normally referred to as ele-
ments or members.
Sets are usually denoted by a capital letter and the elements by small letters.
Example . (Illustrations of sets)
a) The employees of a company working in the purchase department could be Writ-
ten as:

P = (Jones,Wilson, Gopan, Smith, Hari)

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HBC 2110 MANAGEMENT MATHEMATICS 1

b) The warehouse locations of a large supermarket chain could be written as:

W = (Mumbai, Delhi, Bangalore,Chennai, Triandrum, Kochi)

1.3. Further set concepts

1. Subsets. A subset of some set A, say, is a set which contains some of the
elements of A. For example, If A = (h, i, j, k, l), then:
X = (i, j, l) is a subset of A
Y = (h, l) is a subset of A
Z = (i, j) is a subset of A and also a subset of X.

2. The number of a set. The number of a set A, written as n[A], is defined as the
number of elements that A contains.
For example, If
A = (a, b, c, d, e)

, then n[A] = 5 (since there are 5 elements in A); If

D = (Sales, Purchasing, Inventory, Payroll)

, then n[D] = 4.

3. Set equality. Two sets are equal only if they have identical elements. Thus, if
A = (x, y, z) and B = (x, y, z), then A = B.

4. The Universal Set. In some problems in involving sets, it is necessary to

consider one or more sets under consideration as belonging to some larger
set that contains them. For example, if we were considering the set of skilled
workers (S, say) on a production line, it might be convenient to consider
the universal set (U, say) as all of the workers on the line. In other words,
where a universal set has been defined, all the sets under consideration must
necessarily be subsets of it.

5. The complement of a set. If A is any set, with some universal set U defined,
the complement of A, normally written as A0 , is defined as all those elements
that are not contained in A but are contained in U 0 . For the example of the

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HBC 2110 MANAGEMENT MATHEMATICS 1

Figure 1.1: Venn diagram example

workers on the production line (given in d above), S was specified as the set of
skilled workers within the universal set of all workers on the line. Therefore,
S0 would be all the workers that were not skilled i.e. the set of unskilled
workers.

1.4. Venn Diagrams

A simple way of representing sets and relations between sets is by means of the
Venn diagram. Venn diagram consists of a rectangle that represents the univer-
sal set. Subjects of the universal set are represented by circles drawn within the
rectangle, or the universe. Venn diagrams are useful for demonstrating general re-
lationships between sets. Suppose that the universal set is designated by U and the
sets A, B and C are subject of U.The Venn diagram below can be used to illustrate
the sets as follows .

Venn diagram below representing the intersection of set A and B or = C is illustrated

T
as follows The intersection of two sets A and B is written as A B and defined as
that set which contains all the elements lying within both A or B.
For example, if
A = (a, b, c, d, f , g, )

and
B = (c, f , g, h, j),

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HBC 2110 MANAGEMENT MATHEMATICS 1

then the intersection of A and B is

A ∩ B = (c, f , g),

since these are the elements that lie in both sets. The intersection of three or more
sets is a natural extension of the above.
If P, Q and R are any three sets then P ∩ Q ∩ R is the set containing all the elements
that lie in all three sets.
Any combinations of union and intersection can be used with sets. For, example, if
X and Y are the sets specified above and

Z = (d, f , g, j)

. then:

(X ∩Y ) ∪ Z = (c, f , g) ∪ (d, f , g, j) = (c, d, f , g, j)

Which can be described in words as the set of elements that are in either both of X
and Y or in Z’.
Example . ( To demonstrate set intersection)
If A=(m,n,o,p};B=(m,o,p.q);C=(n,q,r);with a universal set defined as (k,l,m,n,o,p,q,r,s).
Then:
T
a) A B = (m, o, p), since a1l these elements are in both sets. Similarly,
T
b) A C = (n)
T
c) B C = (q).
T T
d) A B C has no elements, is sometimes called the empty set and can be written
T T
A B C = . Note n[] = 0.
e) (A B)0 = (k, l, n, q, r, s) is the complement of A B and is the set of all elements
T T

that are NOT in both A and B.

f) (A ∪ B) C = (m, n, o, p, q) (n, q, r) = (n, q) is the set of all elements that are in
T T

A or B and also in C.

Example . You are given the universal set

U = 1, 2, 3, 4, 5, 6, 7, 8

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HBC 2110 MANAGEMENT MATHEMATICS 1

Figure 1.2: Intersection of sets using Venn diagram

Figure 1.3: A ∩ B

And the following subjects of the universal set:

A = 3, 4, 5, 6,

B = 1, 3, 4, 7, 8

Determine the intersection of A and B

Solution:
The intersection of A and B is the subject of T, containing elements that belong to
both A and B

A ∩ B = 3, 4, 5, 6, ∩ 1, 3, 4, 7, 8 = 3, 4

Example .
Consider the following universal set U and its subjects C, D and E
U = 0, 2, 4, 6, 8, 10, 12
C = 4, 8,
D = 10, 2, 0
E =0

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HBC 2110 MANAGEMENT MATHEMATICS 1

Figure 1.4: D ∩ E

Figure 1.5: C ∩ D ∩ E

Find
i)D ∩ E
ii) C ∩ D ∩ E
Solution
i) D ∩ E = 10, 2, 0 ∩ 0 = 0

D ∩ E= Shaded area
ii)
/
C ∩ D ∩ E = 4, 8 ∩ 10, 2, 0 ∩ 0 = = O

Mutually exclusive or disjointed sets

Two sets are said to be disjointed or mutually exclusive if they have no elements
in common. Sets P and R below are disjointed Disjointed sets are represented by a
null set in this case
P∩R = O /

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HBC 2110 MANAGEMENT MATHEMATICS 1

Figure 1.6: disjoint sets

The union of sets

S
The Union of two sets A and B is written asA B and defined as that set which
contains all the elements lying within either A or B or both.
For example, if
A = (c, d, f , h, j)

and
B = (d, m, c, f , n, p)

, then the union of A and B is

[
A B = (c, d, f , h, j, m, n, p)

, these being the elements that lie in either A or B. So that any element of A must be
an element of A ∪ B; similarly any element of B must also be an element of A ∪ B.
Set union for three or more sets is defined in an obvious way. That is, if A, B and
C are any three sets, A ∪ B ∪ C is the set containing all the elements lying within
anyone of A, B or C, any two of them or all three.
Example . (To demonstrate set union)
If A = (m, n, o, p) and B = (m, o, p, q) and C = (m, p, r); and the universal set is
defined as U = (k, l, m, n, o, p, q, r, s), then:
S
a) A B = (m, n, o, p, q)
S
b) A C = (m, n, o, p, r)
S
c) B C = (m, o, p, q, r)
S S
d) A B C = (m, n, o, p, q, r)

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HBC 2110 MANAGEMENT MATHEMATICS 1

Figure 1.7: union of sets A and B

Figure 1.8: complement of a set

e) (A B)0 = (k, l, r, s),

S
S
which is describing all the elements that are not in A B but are in the universal set
U.
Venn diagram representing the union of sets A and B or A B = Shaded area is
illustrated below;-
A ∪ B= Shaded area

• Complement of a set
Venn diagram representing the complement of a set say A represented by AC is
illustrated below
AC = shaded area

Revision Questions

E XERCISE 1.  For the universal set U = 1, 2, 3, 4, 5 and its subset A = 2, 3 and

B=5
Find
i)Ac

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HBC 2110 MANAGEMENT MATHEMATICS 1

ii)(Ac )c
iii)(Bc )c
solution

E XERCISE 2.  Consider the universal set U and its subsets A, B and C below:
U = a, b, c, de, f
A = a, d
B = b, c, f
C = a, c, e, f
Find
i) A ∪ B
ii)A ∪C
iii)B ∪C
iv) A ∪ B ∪C
Solution

Practice Questions

E XERCISE 3.  An item is said to be defective if it has a major defect or both. In a

batch of 25 defective items, 20 have major defects and 14 have minor defects. How
many items in the batch have both major and minor defects.
E XERCISE 4.  In a survey of 100 students, 55 like chips, 70 like sausages and
45 like both chips and sausages. How many students like chips or sausage but not
both?
E XERCISE 5.  At a local university, 34 students take a course in mathematics, 26
take a course in psychology and 12 take both. How many students take exactly one
of these two courses

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HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 2
set enumeration

Learning outcomes
Upon completing this topic, you should be able to have basic concepts in:

• summary on laws of sets,

• set enumeration, .

Some Laws of Set Algebra

From the following Venn diagram where U is the universal set and A its subset, we
can deduce a number of laws.

/ =A
• A∪O

• A ∪U = U

• A∪A = A

• A∩A = A

• A ∩U = A

• A ∪ Ac = U

• A ∩ Ac = O
/

• (Ac )c = A

Figure 2.1: represents the universal set and its subset

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HBC 2110 MANAGEMENT MATHEMATICS 1

2.1. Set enumeration

This is identifying the numbers of the elements in areas of sets defined by their
unions or intersection.

The general enumeration problem

Given ;

1. overlapping attributes which can be represented as intersecting sets on a Venn

diagram and thus defining a number of distinct areas ;

2. the number of elements in a selection of areas to find the number of elements

in each distinct area .

solution procedure
• identify the attribute sets

• draw an outline Venn diagram

• use the information given to fill in as much of the diagram as possible

• Evaluate the number of elements in any unknown.

2.2. Solving enumeration Problems Using Venn Diagrams

Example . 250 members of a certain society have voted to elect a new chairman.
Each member may vote for either one or two candidates. The candidate elected is
the one who polls most votes
Three candidates x, y z stood for election and when the votes were counted, it was
found that
- 59 voted for y only, 37 voted for z only
- 12 voted for x and y, 14 voted for x and z
- 147 voted for either x or y or both x and y but not for z
- 102 voted for y or z or both but not for x
Required
i) How may voters did not vote
ii) How many voters voted for x only

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HBC 2110 MANAGEMENT MATHEMATICS 1

iii) Who won the elections

Solution:

P + 12 + 59 = 147 giving P = 76
Q + 59 + 37 = 102 giving Q = 6
i)
Those who did not vote
= 250–(76 + 12 + 14 + 59 + 6 + 37)
= 250–204 = 46
ii)
x = 76 + 12 + 14 = 102
y = 12 + 59 + 6 = 77
z = 37 + 14 + 6 = 57
iii)
X won the election


Revision Questions

E XERCISE 6.  In a particular insurance life office, employees Smith, Jones,

Williams and Brown have 0 A’ levels, with Smith and Brown also having a degree.
Smith, Melville, Williams, Tyler, Moore and Knight are associate members of the

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HBC 2110 MANAGEMENT MATHEMATICS 1

Chartered Insurance Institute (ACII) with Tyler, and Moore having ’A’ levels. Iden-
tifying set A as those employees with 0 A0 levels, set C as those employees who are
ACII and set D as graduates:
a) Specify the elements of sets A, C and D.
b) Draw a Venn diagram representing sets A, C and D, together with their known
elements.
c) What special relationship exists between sets A and D?
d) Specify the elements of the following sets and for each set, state in words what
information is being conveyed.
i. A ∩C
ii. D ∪C
iii. D ∩C
e) What would be a suitable universal set for this situation?
try out
E XERCISE 7.  Of the 20 girls in a form, 16 play hockey 12 play tennis and 4 play
basketball. Every girl plays at least one game and two play all the three. How many
play two and only two games.
n(U) = 20
E XERCISE 8.  A quality control analyst for wonder electronics company is re-
viewing the performance of 15 different types of electronics. He finds that in com-
parison with the previous year, 12 have improved reliability and durability and 8
have improved durability. Only 2 types have improved neither reliability nor dura-
bility. How many types of electronics have improved both reliability and durability?
E XERCISE 9.  82 individuals have complained to the consumer protection Agency
about the 2003 Joltmobile. The information contained in the letters of complaint is
summarized 25 complained about steering 23 complained about comfort 22 com-
plained about visibility 11 complained about steering and comfort 7 complained
about steering and visibility 5 complained about all three 33 complained about none
of the above.
Required:
i. How many people complained about comfort and visibility but not steering?
ii. How many complained about exactly one of the three items: steering, comfort
and visibility?

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HBC 2110 MANAGEMENT MATHEMATICS 1

E XERCISE 10.  A corporation employs 95 people in the areas of sales, research

and administration. Some of the employees can function in more than one area: in-
deed 10 can function in any of the three areas, 30 can function in sales and adminis-
tration, 20 can function in sales and research and 15 can function in administration
and research. There are twice as many people in the sales as in the research and the
same number in sales and in administration.
a) How many can function in exactly one area?
b) How many can function in sales?
c) How many can function only in sales?

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HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 3
FUNCTIONS

3.1. Functions and graphs

A function is a mathematical relationship in which the value of a single dependent
variable are determined from the values of one or more independent variables. The
following is an example of a function in which y is said to be a function of x.

y = a + bx

In the above example, both x and y are variables this is because they may assume
different values throughout the analysis of the function. On the other hand, a and b
are referred to as constants because they assume fixed values.
The variable y is a dependant variable in the sense that its values are generated from
an independent variable x.
The collection of all the values of the independent variable for which the function
is defined is referred to as the domain of the function corresponding to this we have
the range of the function, which is the collection of all the values of the dependent
variable defined by the function.
The fact that it is a function of x can also be denoted by the following general form

y = f (x)

Functions of a single independent variable may either be linear or non linear.

Linear functions can be represented by:

y = a + bx

Whereas non – linear functions can be represented by functions such as:

y = a0 + a31 x + a2 x3 (3.1)

y2 = 3x + 18 (3.2)

y = 2x2 + 5x + 7 (3.3)

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HBC 2110 MANAGEMENT MATHEMATICS 1

ax2 + bx + cy + d = 0 (3.4)

xy = k (3.5)

y = ax (3.6)

where α, a , b , c , d , k are constants

Graph of a function
A graph is a visual method of illustrating the behavior of a particular function. It is
easy to see from a graph how as x changes, the value of the f(x) is changing. The
graph is thus much easier to understand and interpret than a table of values. For
example by looking at a graph we can tell whether f(x) is increasing or decreasing
as x increases or decreases.
We can also tell whether the rate of change is slow or fast. Maximum and minimum
values of the function can be seen at a glance. For particular values of x, it is easy
to read the values of f(x) and vice versa i.e. graphs can be used for estimation
purposes.
Different functions create different shaped graphs and it is useful knowing the
shapes of some of the most commonly encountered functions. Various types of
equations such as linear, quadratic, trigonometric, exponential equations can be
solved using graphical methods.

3.2. Equations
An equation is an expression with an equal sign (=)
Equations are classified into two main groups linear equations and non linear equa-
tions. Examples of linear equations are

x + 13 = 15

7x + 6 = 0

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HBC 2110 MANAGEMENT MATHEMATICS 1

Non linear equations in the variable x are equations in which x appears in the second
or higher degrees. They include quadratic and cubic equations amongst others. For
example

5x2 + 3x + 7 = 0

(quadratic equation)

2x3 + 4x2 + 3x + 8 = 0

(cubic equation)
The solution of equations or the values of the variables for which the equations hold
is called the roots of the equation or the solution set.

3.3. Linear simultaneous equations:

Two or more equations will form a system of linear simultaneous equations if such
equations be linear in the same two or more variables. For instance, the following
systems of the two equations is simultaneous in the two variables x and y.

2x + 6y = 23

4x + 7y = 10

The solution of a system of linear simultaneous equations is a set of values of the

variables which simultaneously satisfy all the equations of the system.

Solution techniques
a) The graphical technique
The graphical technique of solving a system of linear equations consists of drawing
the graphs of the equations of the system on the same rectangular coordinate system.
The coordinates of the point of intersection of the equations of the system would
then be the solution.
The above figure illustrates:
Solution by graphical method of two equations

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HBC 2110 MANAGEMENT MATHEMATICS 1

2x + y = 8

x + 2y = 10

The system has a unique solution (2, 4) represented by the point of intersection of
the two equations.

b) The elimination technique

This method requires that each variable be eliminated in turn by making the abso-
lute value of its coefficients equal in the equations of the system and then adding
or subtracting the equations. Making the absolute values of the coefficients equal
necessitates the multiplication of each equation by an appropriate numerical factor.
Consider the system of two equations (i) and (ii) below

2x–3y = 8. . . . . . ..(i)

3x + 4y = −5. . . . . . ..(ii)

Step 1
Multiply (i) by 3

6x–9y = 24. . . . . . (iii)

Multiply (ii) By 2

6x + 8y = −10. . . . . . (iv)

Subtract iii from iv.

17y = −34. . . . . . ..(v)

therefore
y = −2

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HBC 2110 MANAGEMENT MATHEMATICS 1

Step 2
Multiply (i) by 4

8x–12y = 32. . . . . . .(vi)

Multiply (ii) by 3

9x + 12y = −15. . . ..(vii)

Add vi to vii

17x = 17. . . . . . ..(viii)

∴x=1

Thus

x = 1,

y = −2

i.e.
1, −2

c) The substitution technique

To illustrate this technique, consider the system of two equations (i). and (ii) repro-
duced below

2x–3y = 8. . . . . . ..(i).

3x + 4y = −5. . . . . . (ii).

The solution of this system can be obtained by

a) Solving one of the equations for one variable in terms of the other variable;

19
HBC 2110 MANAGEMENT MATHEMATICS 1

b) Substituting this value into the other equation(s) thereby obtaining an equation
with one unknown only
c) Solving this equation for its single variable finally
d) Substituting this value into any one of the two original equations so as to obtain
the value of the second variable

Step 1
Solve equation (i) for variable x in terms of y

2x–3y = 8

3
x = 4 + y.............................(iii)
2
Step 2
Substitute this value of x into equation (ii). And obtain an equation in y only

3x + 4y = −5

3
3(4 + y) + 4y = −5
2

1
8 y = −17. . . . . . .(iv)
2
Step 3
Solve the equation (iv). For y

1
8 y = −17
2

y = −2

Step 4
Substitute this value of y into equation (i) or (iii) and obtain the value of x

2x–3y = 8

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HBC 2110 MANAGEMENT MATHEMATICS 1

2x–3(−2) = 8

x=1

Example . Solve the following by substitution method

2x + y = 8

3x–2y = −2

Solution:

Solve the first equation for y

y = 8–2x

Substitute this value of y into the second equation and solve for x

3x–2y = −2

3x–2(8 − 2x) = −2

x=2

Substitute this value of x into either the first or the second original equation and
solve for y

2x + y = 8

(2)(2) + y = 8

y=4

21
HBC 2110 MANAGEMENT MATHEMATICS 1

E XERCISE 11.  Suppose that the cost of an airline ticket is related to the distance
travelled by a linear equation. The cost of a 200 mile flight is shs 7600 and the cost
of a 300 mile flight is shs 10,000. (formulate) above
Required:
i. Find the equation relating the cost and distance.
ii. Find the cost of a 275 mile flight.
E XERCISE 12.  William and Margaret plan to open a fruit drink stand. They
have 15 lemons and 30 oranges to use in making two types of drinks. They use 2
lemons and 1 orange to make 10 glasses of the tart drink and 1 lemon and 3 oranges
to make 10 glasses of sweet drink. They use mountain spring water as an all-natural
mixer.(solve simultaneity) above
Required :
i. Find the number of glasses of each type of drink they should make to exactly use
their supply of fruit.
E XERCISE 13.  Murphy’s Muffin shop makes two sizes of raisin muffins using
prepackaged dough and raisins. Each large muffin uses 5 grams of dough and 2
grams of raisins and each small muffin uses 2 grams of dough and 1 gram of raisin.
Each day the shop receives 450 grams of dough and 200 grams of raisins.
Required:
i. How many large muffins and small muffins should be baked each day to use up
all the dough and raisins?
E XERCISE 14.  A fertilizer is made by blending together two ingredients. Fast-
grow and Greendip. Different blends produce different effects. Blend A: 4 cups of
Fastgrow and 3 cups of Greendip costs shs 2000 Blend B: 2 cups of Fastgrow and
5 cups of Greendip costs shs 1700.
Required:

• Write up two equations and find the cost of Fastgrow and Greendip.

• How much would a blend of 6 cups of Fastgrow with 1 cup of Greendip cost?

22
HBC 2110 MANAGEMENT MATHEMATICS 1

3.4. quadratic equations

3.4.1. Properties of quadratic equations and Functions
The graph of a quadratic function is called a parabola. In business math, we con-
sider only some of the simple properties of the quadratic functions and their graph-
ing.
Properties necessary to remember:

1. The parabola is symmetrical to a vertical line:

−b
x= .
2a

2. When a > 0, the parabola opens upward, the corresponding quadratic func-
tion has a minimum value
−b
f ( ).
2a
3. When a < 0, the parabola opens downward, the corresponding quadratic
function has a maximum value

−b
f( ).
2a

4. The values of x for the quadratic equation ax2 + bx + c = 0 correspond to the

intercepts of the parabola and the x-axis.Thus

(i) when
b2 − 4ac > 0

,
ax2 + bx + c = 0

has two x values, the parabola of the function

f (x) = ax2 + bx + c

has two intercepts with the x-axis.

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HBC 2110 MANAGEMENT MATHEMATICS 1

(ii) when
b2 − 4ac = 0

,
ax2 + bx + c = 0

has one x value, the parabola of the function

f (x) = ax2 + bx + c

has one intercept with the x-axis, and this intercept is the minimum/maximum
value of the function.

(iii) when
b2 − 4ac > 0

,
ax2 + bx + c = 0

has no x value, the parabola of the function

f (x) = ax2 + bx + c

has no intercept with the x-axis.

5. Vertex
−b −b
( , f( )
2a 2a
is the lowest/highest point on a parabola. This point can help decide the
positioning of the parabola, and also helps to solve the minimum/maximum
value of the quadratic function.

3.4.2. solution to quadratic equation

Suppose that we have an equation given as follows

ax2 + bx + c = 0

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HBC 2110 MANAGEMENT MATHEMATICS 1

Where a, b and c are constants, and a 6= 0. such an equation is referred to as the

general quadratic equation in x. if b = 0,
then we have

ax2 + c = 0

Which is a pure quadratic equation

There are 3 general methods for solving quadratic equations; solution by factoriza-
tion, solution by completing the square and solution by the quadratic formula.

3.4.3. Solution by Factorization

The following are the general steps commonly used in solving quadratic equations
by factorization

1. Set the given quadratic equation to zero

2. Transform it into the product of two linear factors

3. Set each of the two linear factors equal to zero

4. Find the roots of the resulting two linear equations

Example . Solve the following equation by factorization

i.
6x2 = 18x

Solutions
i.
6x2 = 18x

6x2 –18x = 0

(step 1)

6x(x–3) = 0

(step 2)

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HBC 2110 MANAGEMENT MATHEMATICS 1

6x = 0

(step 3)
and

x–3 = 0

∴x=0

or

x=3

(by step 4)

3.4.4. Solution by Completing the Square

The process of completing the square involves the construction of a perfect square
from the members of the equation which contains the variable of the equation.
Consider the equation

–9x2 –bx = 0

The method of completing the square will involve the following steps

1. Make the coefficient of x2 unity

2. Add the square of 12 the coefficient of x to both sides of the equal sign. The
left hand side is now a perfect square

3. Factorize the perfect square on the left hand side.

4. Find the square root of both sides

5. Solve for x

Example . Solve by completing the square.

3x2 = 9x

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HBC 2110 MANAGEMENT MATHEMATICS 1

Solutions

3x2 = 9x

3x2 − 9x = 0

x2 − 3x = 0

 2  2
2 3 3
x − 3x + − = −
2 2

3 2 9
 
x− =
2 4
r
3 9
x− = ±
2 4

3 3
x= ±
2 2

3+3 3 3
= or −
2 2 2
∴

(x = 3 or 0)

3.4.5. Solution by Quadratic Formula

Consider the general quadratic equation

ax2 + bx + c = 0

where a 6= 0
The roots of the equation are obtained by the following formula:
√
−b ± b2 − 4ac
x=
2a

27
HBC 2110 MANAGEMENT MATHEMATICS 1

Example . Solve for x by formula

5x2 + 2x–3 = 0

Solution
a = 5, b = 2, c = −3
√
−b ± b2 − 4ac
x=
2a
p
−2 ± 22 − 4 (5) (−3)
x=
2 (5)

3
x=
5
or
x = −1

3.5. Application in business

Cost, Revenue, and Profit
• Revenue Function:
R(x) = (unit price)•x

• Cost Function:

C(x) = (variable cost)•x + ( f ixed cost)

• Profit Function:
P(x) = R(x)–C(x)

Common types of questions relating to cost/revenue/profit include:

Find the Break-Even point

At Break-Even (there is no profit, the costs equal the revenue).

R(x) = C(x)

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HBC 2110 MANAGEMENT MATHEMATICS 1

Generate Profit Function and find Maximum Profit

Profit Function:

P(x) = R(x)–C(x)

Example . If the total costs are

C(x) = 500 + 90x

and total revenues are

R(x) = 150x–x2

Find the break-even point(s).

R(x) = C(x)

150x − x2 = 500 + 90x

x2 − 60x + 500 = 0

x = 50, x = 10

(can bring this x value to either C(x) or R(x))

y = 500 + 90•50 = 5000

y = 500 + 90•10 = 1400

the break-even points are:

(50, 5000), (10, 1400)

Example . Using the above example, write the profit function, and find

1. what level production maximizes the profit?

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HBC 2110 MANAGEMENT MATHEMATICS 1

2. what is the maximum profit?

P(x) = R(x)–C(x)

= (150x–x2 )–(500 + 90x)

= 150x–x2 − 500–90x

= −x2 + 60x − 500

(at vertex, function reaches maximum point)

−b
V (x) = −
2a

= −60/(2•(−1))

= 30

1. producing 30 units maximizes the profit.

V (y) = −302 + 60•30–500

= 2200

2. the maximum profit is $2,200.

Demand and Supply

Common types of questions relating to demand/supply include:

Find Market Equilibrium Point At Market Equilibrium,

Demand = Supply.

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HBC 2110 MANAGEMENT MATHEMATICS 1

Example . if the demand function for a product is given by

p2 + 2q = 1600

, and the supply function is given by

200–p2 + 2q = 0

, find the equilibrium quantity and equilibrium price. First of all, rewrite the demand
and supply functions.
Demand Function:
1
q = −( )p2 + 800
2
Supply Function:
1
q = ( )p2 − 100
2

(p represents price, q represents quantity) At Market Equilibrium,

Demand = Supply

1 1
−( )p2 + 800 = ( )p2 − 100p2 − 900 = 0
2 2

p = 30

(p = −30 is not a valid answer)

the equilibrium price is $30. (can bring this price to either supply or demand func-
tion)

31
HBC 2110 MANAGEMENT MATHEMATICS 1

1
q = ( )(30)2 − 100 = 350
2

the equilibrium quantity is 350 units.

Revision question

E XERCISE 15.  Solve by completing the square

2x2 + 3x + 1 = 0

solution
E XERCISE 16.  Solve the following equation by factorization

15x2 + 16x = 15

solution
E XERCISE 17.  For producing a certain product, if total costs can be represented
by
C(x) = 1600 + 1500x

and the total revenues can be represented by

R(x) = 1600x − x2

find the break-even point(s) and the maximum possible profit. b) If the demand
function for a commodity is given by the equation

p2 + 4q = 1600

and the supply function is given by the equation

550 − p2 + 2q = 0

32
HBC 2110 MANAGEMENT MATHEMATICS 1

find the equilibrium quantity and equilibrium price.

practice questions

E XERCISE 18.  Solve the system of equation

8x − 4y = 16

2x − y = 0

E XERCISE 19.  Suppose that the cost of an airline ticket is related to the distance
traveled by a linear equation. The cost of a 200 mile flight is shs 7600 and the cost
of a 300 mile flight is shs 10,000. Required: find the equation relating the cost and
distance, and find the cost of a 275 mile flight.
E XERCISE 20.  William and Margaret plan to open a fruit drink stand. They have
15 lemons and 30 oranges to use in making two types of drinks. They use 2 lemons
and 1 orange to make 10 glasses of the tart drink and 1 lemon and 3 oranges to make
10 glasses of sweet drink. They use mountain spring water as an all-natural mixer.
Find the number of glasses of each type of drink they should make to exactly use
their supply of fruit.
E XERCISE 21.  Murphy’s Muffin shop makes two sizes of raisin muffins using
prepackaged dough and raisins. Each large muffin uses 5 grams of dough and 2
grams of raisins and each small muffin uses 2 grams of dough and 1 gram of raisin.
Each day the shop receives 450 grams of dough and 200 grams of raisins. How
many large muffins and small muffins should be baked each day to use up all the
dough and raisins?
E XERCISE 22.  A fertilizer is made by blending together two ingredients. Fast-
grow and Greendip. Different blends produce different effects. Blend A: 4 cups of
Fastgrow and 3 cups of Greendip costs shs 2000 Blend B: 2 cups of Fastgrow and 5
cups of Greendip costs shs 1700. Required: a. Write up two equations and find the
cost of Fastgrow and Greendip. b. How much would a blend of 6 cups of Fastgrow
with 1 cup of Greendip cost.

33
HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 4
Other functions

Learning outcomes
Upon completing this topic, you should be able to have basic concepts in:

• logarithmic and exponential functions

• polynomials ,

• methods of solving the functions,

• application in business.

4.1. introduction
Logarithms were introduced in the 17th century as a computational device, primar-
ily because they can be used to convert expressions involving products and quotients
into much simpler expressions involving sums and differences.
Logarithms play an important role in a variety of applications, such as measuring
the capacity of a transmission channel and in the famous Richter scale for measuring
earthquake intensity. In this section, we examine the basic properties of logarithmic
functions and a few applications.

4.2. Logarithmic Functions

We begin with definition.

exponential equation
Suppose you invest $1, 000 at 8% compounded continuously and wish to know how
much time must pass for your investment to double in value to $2, 000. the value of

Figure 4.1: logarithmic functions

34
HBC 2110 MANAGEMENT MATHEMATICS 1

Figure 4.2: logarithms rules

your account after t years will be 1, 000e0.08t . so to find the doubling time for your
account, you must solve for t in the exponential equation below

1, 000e0.08t = 2, 000

or, by dividing both sides by 1, 000,

gives
e0.08t = 2

Solving an exponential equation such as this involves using logarithms, which re-
verse the process of exponentiation.
Example . Evaluate
log10 1, 000
log2 32
Solution
log10 1, 000 = 3 since 103 = 1, 000
log2 32 = 5 since 25 = 32.

4.3. logarithms rules

Here are the rules for logarithms that facilitate such simplification
All these logarithmic rules follow from corresponding exponential rules. For exam-
ple,

logb 1 = 0 since b0 = 1

logb b = 1 since b1 = b

35
HBC 2110 MANAGEMENT MATHEMATICS 1

To prove the equality rule, let

m = logb u

and

n = logb v

So that by definition,

bm = u

and

bn = v

Therefore, if

logb u = logb v

then m = n, so

bm = bn

or, equivalently,

u=v

As stated in the equality rule for logarithms. Similarly, to prove the product rule for
logarithms, note that,

logb u + logb v = m + n

= logb (bm+n )

= logb (bm bn )

36
HBC 2110 MANAGEMENT MATHEMATICS 1

= logb (uv)

Example . evaluate
log5 ( 53 )
log5 4
log5 108
Solution
(a)

5
log5 ( ) = log5 5 − log5 3
3
= 1 − log5 3

(b)

log5 4 = log5 22
= 2log5 2

(c)

log5 108 = log5 (22 33 )

= log5 22 + log5 33
= 2log5 2 + 3log5 3

4.4. Polynomials
Business application
Logarithms can be used to compute the doubling or tripling time of an investment.
Example . evaluate
log5 36

Solution:

37
HBC 2110 MANAGEMENT MATHEMATICS 1

Figure 4.3: polynomials

log5 8 = log5 23
= 3log5 2

Revision Questions

E XERCISE 23.  Evaluate

1
log5 ( )
125

E XERCISE 24.  evaluate

log5 36

E XERCISE 25.  Suppose $1000 is invested at an interest rate of 8% compounded

annually. Compute the time required for the investment to double in value.

38
HBC 2110 MANAGEMENT MATHEMATICS 1

practice questions

E XERCISE 26.  Suppose $1,000 is placed in an account earning 6% interest com-

pounded annually. The amount of money in the account as as function of time is
given by

A = 1, 000(1.06)t.

Required:
i. Find the time required for the value of this investment to double.

39
HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 5
Inequalities

Learning outcomes
Upon completing this topic, you should be able to have basic concepts in:

• defining inequalities ,

• methods of solving inequalities,

• application in business.

5.1. introduction
An inequality or in-equation is an expression involving an inequality sign (i.e. >, <,
≤, ≥, i.e. greater than, less than, less or equal to, greater or equal to) The following
are some examples of in equations in variable x.

3x + 3 > 5

x2 –2x–12 < 0

The first is an example of linear in-equation and the second is an example of a

quadratic in equation.

5.2. Solutions of in-equations

The solutions sets of in equations frequently contain many elements. In a number
of cases they contain infinite elements.
Example . Solve and graph the following in-equation
x–2 > 2 ; x ⊂ w (where x is a subset of w)
Solution:

x–2 > 2

so

40
HBC 2110 MANAGEMENT MATHEMATICS 1

x–2 + 2 > 2 + 2

Thus,

x>4

The solution set is infinite, being all the elements in w greater than 4

Example Solve and graph

3x–7 < −13

Solution

3x–7 < −13

⇒ 3x − 7 + 7 < −13 + 7

⇒ 3x < −6

3x 6
<−
3 3

x < −2

5.3. Rules for solving linear in equations

Suppose M, M1 , N, N1 and P are expressions that may or may not involve variables,
then the corresponding rules for solving in equations will be:

41
HBC 2110 MANAGEMENT MATHEMATICS 1

Rule 1: Addition rule

If M > N and M1 > N1
Then
M+P > N +P

and
M1 + P > N1 + P

Rule 2: Subtraction Rule If and M1 ≥ N1

Then
M–P < N–P

and
M1 –P ≥ N1 –P

Rule 3: Multiplication rule

If M ≥ NmathnM1 > N1 and P 6= 0
Then
MP ≥ NP

M1 P > N1 P

m
M(−P) ≤ N(−P)

and
M1 (−P) < N1 (−P)

Rule 4: Division
If M > N and M1 < N1 and P 6= 0
Then

M N
>
P P

M1 N1
>
P P
and

42
HBC 2110 MANAGEMENT MATHEMATICS 1

M N
>
−P −P
M1 N1
>
−P −P
Rule 5: Inversion Rule
If M N
P > Q where P, Q 6= 0 and
Then

P Q
>
M N
and

P Q
>
M1 N1
Note: The rules for solving equations are the same as those for solving equations
with one exception; when both sides of an equation is multiplied or divided by
a negative number, the inequality symbol must be reversed (see rule 3 & Rule 4
above).

Solve and graph the following:

7–2x > −11

Solutions
7–2x > −11

−2x > −18 (subtration rule)

−2x −18
< (by division rule)
−2 −2

x<9

43
HBC 2110 MANAGEMENT MATHEMATICS 1

5.4. Linear in-equation in two variables: relations

An expression of the form

y ≥ 2x–1

is technically called a relation. It corresponds to a function, but different from it in

that, corresponding to each value of the independent variable x, there is more than
one value of the dependent variable y
Relations can be successfully presented graphically and are of major importance in
linear programming.

Revision Questions

Example . Solve and graph

3x–7 < −13

Solution:

3x–7 < −13

⇒ 3x − 7 + 7 < −13 + 7

⇒ 3x < −6

3x 6
<−
3 3

x < −2

44
HBC 2110 MANAGEMENT MATHEMATICS 1

E XERCISE 27.  Solve and graph the following:

–5x + 4 ≤ 2x–10

E XERCISE 28.  Solve and graph the following:

–3 ≤ 2x + 1 < 7

Application in business
If the total costs are C(x) = 500 + 90x, and total revenues are R(x) = 150x – x².
Find the break-even point(s).
Inequalities

1. Choose the unknowns.

2. Write the objective function.

3. Write the constraints as a system of inequalities.

4. Find the set of feasible solutions that graphically represent the constraints.

5. Calculate the coordinates of the vertices from the compound of feasible solu-
tions.

6. Calculate the value of the objective function at each of the vertices to deter-
mine which of them has the maximum or minimum values.

It must be taken into account the possible non-existence of a solution if the com-
pound is not bounded.

1. Determine objective function (follow the money)

2. Determine constraint functions (same variables)

3. Compute (X,0) and (0,Y) for constraint functions Sometimes it’s (0,0) and
(X,Y) see hints

4. Identify highest X and Y for scales (divide by 20)

5. Plot two points and connect line for each constraint

45
HBC 2110 MANAGEMENT MATHEMATICS 1

6. Identify solution area

7. Compute objective function for each corner, and choose greatest revenue or
least cost

E XERCISE 29.  Solve the system of equation

8x − 4y = 16

2x − y = 02.

E XERCISE 30.  A farmer has a 320 acre farm on which she plants two crops:
corn and soybeans. For each acre of corn planted, her expenses are $50 and for
each acre of soybeans planted, her expenses are $100. Each acre of corn requires
100 bushels of storage and yields a profit of $60; each acre of soybeans requires 40
bushels of storage and yields a profit of $90. If the total amount of storage space
available is 19,200 bushels and the farmer has only $20,000 on hand.
Required:
i. Formulate the objective function.
ii. Formulate the constraint function.
E XERCISE 31.  A plant makes aluminum and copper wire. Each pound of alu-
minum wire requires 5 kwh of electricity and 14 hr. of labor. Each pound of copper
wire requires 2 kwh of electricity and 12 hr. of labor. Production of copper wire is
restricted by the fact that raw materials are available to produce at most 60 lbs./day.
Electricity is limited to 500 kwh/day and labor to 40 person–hrs./day. If the profit
from aluminum wire is $25/lb. and the profit from copper is $40/lb.
Required:
i. Formulate the objective function.
ii.Formulate the constraint function.
E XERCISE 32.  A company makes two types of sofas, regular and long, at two
locations, one in Hickory and one in Lenoir. The plant in Hickory has a daily operat-
ing budget of $45,000 and can produce at most 300 sofas daily in any combination.
It costs $150 to make a regular sofa and $200 to make a long sofa at the Hickory
plant. The Lenoir plant has a daily operating budget of $36,000, can produce at

46
HBC 2110 MANAGEMENT MATHEMATICS 1

most 250 sofas daily in any combination and makes a regular sofa for $135 and a
long sofa for $180. The company wants to limit production to a maximum of 250
regular sofas and 350 long sofas each day. If the company makes a profit of $50 on
each regular sofa and $70 on each long sofa,
Required:
i. Formulate the objective function.
ii.Formulate the constraint function.

47
HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 6
Sequences And Series

Learning outcomes
Upon completing this topic, you should be able to have basic concepts in:

• sequence

• series ,

• arithmetic progression

• geometric progression,

• application in business.

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HBC 2110 MANAGEMENT MATHEMATICS 1

6.1. Aims and Objectives

This chapter deals with the concepts and applications of sequence and series. A
clear understanding about sequence and series is provided. Applications of series
like Arithmetic Progression and Geometric Progression and practical applications
in business are also dealt with in this chapter.

6.2. Sequence
If for every positive integer n, there corresponds a number an such that an is related
to n by some rule, then the terms a1 , a2 , . . . an . . . . are said to form a sequence. A
sequence is denoted by bracketing its nth term, i.e. (an )or an

Example of a few sequences is:

if an = n2 , then sequence an is 2, 1, 23 , 24 , · · · , 2n · · · ∞
If an = n2 , then sequence an is 1, 4, 9, 16, · · · , ∞
n2 n2
Ifan = (n+1) , then sequence an is 12 , 43 , 94 · · · , (n+1) · · · ∞.

Importance
The concept of sequence is very useful in business environment especially in in-
stallment buying, simple and compound interest problems and mortgage payments

6.3. Series
A series is obtained by connecting the terms of sequences with plus or minus sign.
Thus if an is the nth term of a sequence, then a1 + a2 + · · · + an Is the given series
of n terms.

6.4. Progression
A progression is a sequence whose successive terms indicate the growth or progress
of some characteristics.

6.5. Arithmetic Progression (AP)

An arithmetic progression is a sequence whose term increases or decreases by a
constant number called common difference denoted by d.

49
HBC 2110 MANAGEMENT MATHEMATICS 1

In other words, each term of the arithmetic progression after the first is obtained by
adding a constant d to the preceding term. The standard form of an A.P. is written
as
a, a + d, a + 2d, a + 3d, . . .

Where ‘a’ is called the first term. Thus the corresponding standard form of an
arithmetic series becomes

a + (a + d) + (a + 2d) + (a + 3d) + · · · a + (n − 1)d

The nth term of an A.P. is also called the general term of the standard A.P. It is given
by.

Tn = a + (n − 1)d

where
n = 1, 2, 3, . . .

6.5.1. Sum of the First n terms of an A.P

Consider the first n terms of an A.P.

a, a + d, a + 2d, a + 3d, . . . ., a + (n − 1)d

The sum, sn of the these terms is given by

sn = a + (a + d + (a + 2d) + (a + 3d) + . . . + a + (n − 1)d

= (a + a + · · · + a) + d(1 + 2 + (n − 1)3 + · · · )

= n.a + dn(n − 1)/2

(Using formula for the sum of first (n − 1) natural numbers)

= n/22a + (n − 1)d

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HBC 2110 MANAGEMENT MATHEMATICS 1

6.6. Geometric Progression (GP)

A geometric progression (GP) is a sequence whose each term increases or decreases
by a Constant ratio called common ratio of G.P. and is denoted by r. In other words,
each term Of G.P. is obtained after the first by multiplying the preceding term by a
constant r. The Standard from of a G.P. is written as:

a, ar, ar2 , . . . .

Where ‘a’ is called the first term. Thus the corresponding geometric series in stan-
dard form becomes

a + ar + ar2 + . . . .

Revision Questions

E XERCISE 33.  Kabana repays a loan of $3000 by paying $20 in the first month
and then Increases the payment by $15 every month. How long will it take to
clear his loan? Solution Since Kabana increases the monthly payment by a constant
amount, $15 every month, therefore d = 15 and first month installment is, a = $ 20.
This forms an A.P. Now if the entire amount is to be paid in n monthly installments,
then we have
sn = n/22a + (n − 1)d
3000 = n/22(20) + (n − 1)15
6000 = n15n + 25
15n2 + 25 − 6000 = 0
E XERCISE 34.  Find the 20thterm of an A.P. whose first term is 10 and common
difference is 4.

• A company produces 1500 digital sets during its first year. The total produc-
tion of the firm at the end of the 15th year is 8300 digital sets, then
Estimate by how many units, production has increased each year.

• Based on estimate of the annual increment in production, forecast the amount

of Production for the 10th year.

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HBC 2110 MANAGEMENT MATHEMATICS 1

Example . Suppose we invest $ 100 at a compound interest of 12% per annual

for three years.
The amount at the end of each year is calculated as follows:
Solution:
i) Interest at the end of first year = 100×12/100 = $ 12
Amount at the end of first year = Principal + Interest

= 100 + 100(12/100)

= 100(1 + 12/100)

This shows that the principal of $ 100 becomes $ 100 (1+12/100) at the end of first
year.
ii) Amount at the end of second year
= (Principal at the beginning of second year) {1+12/100}

= 1001 + 12/1001 + 12/100

= 1001 + 12/1002

Amount at the end of third year

= 1001 + 12/1002 1 + 12/100

= 1001 + 12/1003

E XERCISE 35.  A radio station considered giving away Shs 4,000 every day in
the month of August for a total of Shs 124,000. Instead, they decided to increase
the amount given away daily while still giving away the same total amount.
Required:
i. If they want to increase the amount by shs 100 each day, how much should they
give away the first day?

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HBC 2110 MANAGEMENT MATHEMATICS 1

E XERCISE 36.  A basketball team has a halftime promotion where a fan gets to
shoot a 3-pointer to try to win a jackpot. The jackpot starts at Shs 5,000 for the
first game and increases shs 500 each time there is no winner. Ken has tickets to
fifteenth game of the season. How much will the jackpot be for that game if no one
wins by then?
E XERCISE 37.  Suppose a computer that costs Sh 30,000 new is only worth shs
6000 after 3 years. What is the average annual rate of depreciation?
E XERCISE 38.  Explain the difference between sequence and a series
E XERCISE 39.  A construction company will be find each day it is late complet-
ing its current project. The daily fine will be Shs 4,000 for the first day and will
increase by shs 1000 each day. Based on its budget, the company can only afford
shs 60,000 in total fines. What is the maximum number of days it can be late? 6.
Gerald’s current salary is shs 40,000 per year. His annual pay raise is always a per-
centage of his salary at the time. What would his salary be if he got four consecutive
4% increase?.

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HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 7
Limits, Continuity and Differentiability

7.1. LIMITS
If f (x) tends to L as x tends to a, we say that the limit of f (x) ,as x tends to a is L.
This
lim
is abbreviated by f (x) = L
x→a

lim
f (x) is the value that f (x) approaches as x approaches a, which means that
x→a
for
each real ε > 0 there exists a real number δ > 0 such that for all x within
0 < |x − a| < δ =⇒ | f (x) − L| < ε
lim
Definitions; (i) f (x) is the limit of f (x) as x tends to a through values
x→a+
greater than a. [Right hand limit RHL]
lim
(ii) f (x) is the limit of f (x) as x tends to a through values
x→a−
less than a. [Left hand limit LHL]
Theorem
lim lim
Suppose that f (x) = L1 and g(x) = L2
x→a x→a

lim
1. ( f (x) + g(x)) = L1 + L2
x→a

lim
2. ( f (x)g(x)) = L1 L2
x→a

lim  f (x)   
L1
3. g(x) = L2
x→a

lim
4. λ ( f (x)) = λ L1
x→a

lim
Example . Evaluate (3x3 − x2 + 2x + 5)
x→2

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HBC 2110 MANAGEMENT MATHEMATICS 1

lim lim lim lim lim

Solution: (3x3 − x2 + 2x + 5) = 3 x3 − x2 + 2 x+ 5
x→2 x→2 x→2 x→2 x→2
= 3 (2)3 − (2)2 + 2(2) + 5 = 29


lim x2 −1
Example . Evaluate x+1
x→1

lim x2 −1 0
Solution: x+1 = 2 = 0 or
x→1

lim (x−1)(x+1)
(x+1) = x−1 = 0
x→1


lim x2 −1
Example . Evaluate x−1
x→1

lim x2 −1 lim (x−1)(x+1)

Solution: x−1 = (x−1) = x+1 = 2 
x→1 x→1

lim √
1− x
Example . Evaluate 1−x
x→1

lim √ lim √
1− x √1− x √ 1√ 1
Solution: 1−x = (1+ x)(1− x)
= 1+ x
= 2 
x→1 x→1

lim 5x2 −3x+2

Example . 10x2 −x+100
x→∞

lim 5x2 −3x+2 lim 5− 3x + 2

5 1
x2
Solution: 10x2 −x+100
= 1 100
10− x + 2
= 10 = 2 
x→∞ x→∞ x

lim q q
Example . 1
1 + x − 1x
x→∞

lim q q
Solution: 1 + x − 1x =
1
x→∞

lim 1+ 1x − 1x lim
q q = q 1 q =1 
x→∞ 1+ 1x + 1x x→∞ 1+ 1x + 1x

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HBC 2110 MANAGEMENT MATHEMATICS 1

De L’Hopital’s Rule
lim lim
Suppose f (x) = g(x) = 0, but g(x) 6= 0
x→a x→a

lim 0
f (x) f (x)
Then g(x) = 0
x→a g (x)

Examples
lim √ lim 1/2
1− x 0− 21 x− 1
1. 1−x = −1 = 2
x→1 x→1

lim x−sin x lim 1−cos x lim sin x lim cos x 1

2. x3
= 3x2
= 6x = 6 = 6
x→0 x→0 x→0 x→0

lim x lim 1 1
3. sin 2x = 2 cos 2x = 2
x→0 x→0

lim sin 7x lim 7 cos 7x 7

4. 4x = 4 = 4
x→0 x→0

lim  cos y  lim  − sin y 

5. π = −1 =1
y→ π2 2 −y y→ π2

lim x sin x

lim sin x+x cos x


6. 1−cos x = sin x
x→0 x→0

lim cos x+cos x−x sin x

2
= cos x = 1 =2
x→0

lim
Example . xx
x→0
Solution: Let y = xx then, ln y = x ln x
let x = et then ln y = et ln et = tet
as x → 0, t → 0 ∴ tet → 0 and as ln y → 0, y → 1
lim x
Hence x =1
x→0


lim
x
E XERCISE 40.  1 + 1x
x→∞

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HBC 2110 MANAGEMENT MATHEMATICS 1

More Revision Questions

Evaluate the following limits
lim  y2 +5y+9  lim  x2 −25 
(1) y+2 (2) x−5
y→0 x→5

lim  x2 −x−2  lim  x3


(3) x2 −1
(4) sin 2x
x→1 x→0

lim sin 7x

lim  3x2 −6x 
(5) 5x (6) 4x−8
x→0 x→∞

lim 1

 5x2 −1  lim  7x−28 
(7) x +1 x2
(8) x3
x→∞ x→∞

lim  sin2 θ  lim 1−cos θ

(9) θ2
(10) θ
θ →0 θ →0

lim 5x+1

lim  x+1 
(11) 10+2x (12) x2
x→∞ x→∞

lim  x2 +1  lim 5


(13) x (14) 1+x
x→∞ x→∞

7.2. CONTINUITY
Definition Suppose that the function f is defined in a neighborhood of a. We say
lim
that f is continuous at a provided that the f (x) exists and moreover that
x→a
the value of this limit is f (a). In other words f is continuous at a provided that
lim
f (x) = f (a).
x→a
For a function f to be continuous at the point a it must satisfy the following three
conditions:

1. The function f must be defined at a (so that f (x) exists)

2. The limit of f (x) as x approaches a must exist

lim
3. The numbers in condition 1. and 2. must be equal i.e. f (x) = f (a)
x→a

If any one of these conditions is not satisfied, then f is not continuous at a. If the
function f is not continuous at a, the we say that f is discontinuous or that a is a
discontinuous of f .

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HBC 2110 MANAGEMENT MATHEMATICS 1

Example . f (x) = 1
x−2 for x 6= 2
lim lim 1
Solution: f (x) = x−2 = −∞
x→2− x→2−

lim lim 1
f (x) = x−2 =∞
x→2+ x→2+
Therefore f (x) is discontinuous at x = 2 (Infinite discontinuity at x = 2)


 +1 i f x ≥ 0
Example . g(x) =
 −1 i f x < 0
Solution: Its left hand limit and right hand limit at x = 0 are unequal i.e.
lim lim
g (x) = −1 and g (x) = 1
x→0− x→0+
Thus g(x) has no limit as x → 0. Hence the function g is not continuous at x = 0, it
has what might be called a finite jump discontinuity there.


 sin x i f x 6= 0
E XERCISE 41.  h(x) = x
 0 if x = 0

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HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 8
Continuations of continuous functions

Any product or sum of continuous functions is continuous.

That is, if the functions f and g are continuous at x = 2, then
lim lim lim
[ f (x) + g (x)] = f (x) + g (x) = f (a) + g (a)
x→a x→a x→a
Example f (x) = x
f (x) is continuous everywhere
It follows that the cubic polynomial function x3 − 3x2 + 1 is continuous everywhere.
More generally, every polynomial function p(x) = bn xn + bn−1 xn−1 + · · · + b1 x + b0
is continuous at each point of the real line. If p(x) and g (x) are polynomials, then
lim p(x)
the quotient law for limits and the continuity of polynomials imply that g(x) =
x→a

lim
p(x)
x→a p(a) p(x)
= g(a) , provided g(a) 6= 0. Thus every rational function f (x) = g(x) is
lim
g(x)
x→a
continuous wherever it is defined.
The point x = a where the function f is discontinuous is called a removable discon-
tinuity of f provided that there exist a function F such that
F (x) = f (x) for all x 6= a in the domain of f , and this new function F is continuous
at x = a.
Example . Suppose that f (x) = x−2
x2 −3x+2
Solution: but x2 − 3x + 2 = (x − 2) (x − 1)
x−2 x−2 1
∴ f (x) = x2 −3x+2 = x2 −3x+2 = x−1 . This shows that f is not defined at x = 1 and
x = 2,
=⇒ f (x) is continuous except at these points. f (x) is continuous except at the
1
single point x = 2, the new function F (x) = x−1 agrees with f (x) if x 6= 2 but it is
continuous at x = 2 also where F (2) = 1. Therefore f has a removable discontinuity
at x = 2. The discontinuity at x = 1 is not removable.


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HBC 2110 MANAGEMENT MATHEMATICS 1

Composition of functions
Let h (x) = f (g (x)) where f and g are continuous functions. The composition of
two continuous functions is also continuous. More precisely if g is continuous at a
and f is continuous at g (a), then f ◦ g is continuous at a where f ◦ g = f (g (x))

Proof
lim
The continuity of g at a means that g(x) and the continuity of f at g(a) implies
x→a

lim
that f (g(x)) = f (g(a))
g(x)→g(a)
!
lim lim
i.e. f (g(x)) = f g(x) = f (g (a))
x→a x→a
 2/3
Example . Show that the function f (x) = x−7
x2 +2x+2
is continuous on the
whole real line.
Solution: Consider the denominator x2 + 2x + 2 = (x + 1)2 + 1 > 0 for all values of
x−7
x, hence the rational function r (x) = x2 +2x+2 is defined and continuous everywhere.
 2/3
x−7
Thus f (x) = x2 +2x+2 is continuous everywhere 

More Revision Questions

(1). For the following problems find the points where the given function is not
defined and therefore not continuous. For each given point a, tell whether this
discontinuity is removable.
a) f (x) = x−7 2 x−17
d) f (x) = |x−17|
(x+3) 
 −x i f x < 0
x−2
b) f (x) = x2 −4 e) f (x) =
 x2 i f x > 0

 1 + x2 i f x < 0
1
c) f (x) = 1−|x| f) f (x) =
 sin x i f x > 0
x
(2) For the following problems find a value of the constant c so that the function
f (x) is continuous
 for all x. 
 x+c if x < 0  c2 − x2 i f x < 0
a) f (x) = c) f (x) =
 4 − x2 i f x ≥ 0  2 (x − c)2 i f x ≥ 0

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HBC 2110 MANAGEMENT MATHEMATICS 1
 
 2x + c i f x ≤ 3  c2 − x3 i f x ≤ π
b) f (x) = d) f (x) =
 2c − x i f x > 3  c sin x i f x > π

8.1. THE DERIVATIVE OF A FUNCTION

0
Definition: The derivative of a function f is the function f defined by;
0 lim h f (x+h)− f (x) i
f (x) = h for all x for which this limit exists.
h→0

lim
The function f is differentiable at x = a if f (x) = f (a)exist.
x→a
0
The process of finding the derivative f is called differentiation of f
Example . Find the derivative of the following from first principles
f (x) = x2
Solution: f (x) = x2
0 lim h f (x+h)− f (x) i
f (x) = h
h→0
f f (x + h) = (x + h)2 = x2 + 2xh + h2
(x) = x2 ,
 
0 lim (x2 +2xh+h2 )−x2 lim h 2xh−h2 i lim
∴ f (x) = h = h = 2x − h = 2x
h→0 h→0 h→0

√
Example . f (x) = x
√
Solution: f (x) = x
0 lim h f (x+h)− f (x) i
f (x) = h
h→0
√ √
f (x) = x, f (x + h) = x + h
 √ √
lim h √x+h−√x i lim ( x+h−√x)( x+h+√x)

0
∴ f (x) = h = √ √
h( x+h+ x)
h→0 h→0

lim lim lim

= √x+h−x√ = √ h √ == √ 1 √ = 1
√
h→0 h( x+h+ x) h→0 h( x+h+ x) h→0 (x+h+ x) 2 x

Example . f (x) = 1/x

Solution: f (x) = 1/x
0 lim h f (x+h)− f (x) i
f (x) = h
h→0

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HBC 2110 MANAGEMENT MATHEMATICS 1

f (x) = 1/x, f (x + h) = 1/x+h

0 lim h 1/x+h−1/x i lim h x−(x+h) i
∴ f (x) = h = h(x(x+h))
h→0 h→0
   
lim −h lim −1
= h(x2 +xh)
= = −1/x2
h→0 h→0 (x2 +xh)


E XERCISE 42.  f (x) = xn , n > 0

More Revision Questions

Differentiate the following functions from the first principles

1. f (x) = x3

2. f (x) = x2 + 3x − 2

3. f (x) = 4x4

NB. Differential notation;

∆y f (x+∆x)− f (x)
∆x = h, ∆y = f (x + ∆x) − f (x), ∆x = h
dy lim ∆y
dx = ∆x
∆x→0
dy 0
If y = f (x), we often write dy = f (x)

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HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 9
Basic Differentiation rules

1) The derivative of a constant

dc
If f (x) = c (a constant) for all x, then f (x) = 0. That is, dx =0
Proof
0 lim h f (x+h)− f (x) i lim  c−c  lim  0 
f (x) = h = h = h =0
h→0 h→0 h→0
2) The power rule
0
If n is a positive integer and f (x) = xn then f (x) = nxn−1
Proof
0 lim h f (x+h)− f (x) i
f (x) = h
h→0

f (x) = xn , + n(n−1)
f"(x + h) = (x + h)n = xn + nxn−1 h # 2! x
n−2 h2 + · · · + hn
 
n(n−1)
0 lim xn +nxn−1 h+ 2! xn−2 h2 +···+hn −xn
∴ f (x) = h
h→0
 
lim nxn−1 h+
n(n−1) n−2 2
2! x h +···+hn
= h
h→0

lim
= nxn−1 + n(n−1)
2! x
n−2 h + · · · + hn−1 = nxn−1
h→0

Example . f (x) = 6x5

0
Solution: f (x) = 30x4 

E XERCISE 43.  f (x) = x10

3) The differentiation of a sum
Suppose we know the derivatives of f (x) and g(x)
Let k(x) = f (x) + g (x) , k (x + h) = f (x + h) + g (x + h)
0 lim h k(x+h)−k(x) i
k (x) = h
h→0

0 lim h ( f (x+h)+g(x+h))−( f (x)+g(x)) i

∴ k (x) = h
h→0

lim h ( f (x+h)− f (x))+(g(x+h)−g(x)) i lim h ( f (x+h)− f (x)) i lim h (g(x+h)−g(x)) i

= h = h + h
h→0 h→0 h→0
0 0
f (x) + g (x)

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HBC 2110 MANAGEMENT MATHEMATICS 1

Example . k (x) = x5 − x4 + x2 + x + 3
0
Solution: k (x) = 5x4 − 4x3 + 2x + 1 
4) The differentiation of a product
(i) Let k (x) = λ f (x)
0 lim h k(x+h)−k(x) i lim h λ f (x+h)−λ f (x) i
k (x) = h = h
h→0 h→0

lim h f (x+h)− f (x) i 0 0

λ h ∴ k (x) = λ f (x)
h→0
√
Example . k(x) = 2x2 − 3/x + 5 x
0 √
Solution: k (x) = 4x + 3/x2 + 5/2 x 
4) The differentiation of a product
(i) Let k (x) = λ f (x)
0 lim h k(x+h)−k(x) i lim h λ f (x+h)−λ f (x) i
k (x) = h = h
h→0 h→0

lim h f (x+h)− f (x) i 0 0

λ h ∴ k (x) = λ f (x)
h→0
√
Example . k(x) = 2x2 − 3/x + 5 x
0 √
Solution: k (x) = 4x + 3/x2 + 5/2 x 
(ii) Let k (x) = f (x) g (x), k (x + h) = f (x + h) g (x + h)
0 lim k(x+h)−k(x)
h i lim h f (x+h)g(x+h)− f (x)g(x) i
k (x) = h = h
h→0 h→0

lim h f (x+h)g(x+h)− f (x)g(x+h)+ f (x)g(x+h)− f (x)g(x) i

h
h→0

lim h g(x+h)( f (x+h)− f (x))+ f (x)(g(x+h)−g(x)) i

h
h→0

lim h g(x+h)( f (x+h)− f (x)) i lim h f (x)(g(x+h)−g(x)) i

h + h
h→0 h→0
0 0 0
∴ k (x) = g (x) f (x) + f (x) g (x) (Product Rule)
d
or dx (uv) = v du dv
dx + u dx (Product rule)
Showing that the differential coefficient of the product of two functions of x is
equal to the second function multiplied by the differential coefficient of the first
plus the first function multiplied by the differential coefficient of the second.

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HBC 2110 MANAGEMENT MATHEMATICS 1

Remark
If k (x) = f (x) g (x) h (x)
0 0 0 0
then k (x) = f (x) g (x) h (x) + f (x) g (x) h (x) + f (x) g (x) h (x)
5) The differential of a quotient.
f (x)
Let k (x) = g(x)
 f (x+h) f (x) 
0 lim h k(x+h)−k(x) i lim g(x+h) − g(x)
k (x) = h = h
h→0 h→0

lim h g(x) f (x+h)− f (x)g(x+h) i

hg(x)g(x+h)
h→0

lim h g(x) f (x+h)− f (x)g(x)+ f (x)g(x)− f (x)g(x+h) i

hg(x)g(x+h)
h→0

lim h g(x)( f (x+h)− f (x))− f (x)(g(x+h)−g(x)) i

hg(x)g(x+h)
h→0

lim h g(x)( f (x+h)− f (x)) i lim h f (x)(g(x+h)−g(x)) i

= hg(x)g(x+h) − hg(x)g(x+h)
h→0 h→0
 0 0

1
= g(x)g(x) g (x) f (x) − f (x) g (x) (Quotient rule) or
d u

v du dv
dx −u dx
dx v = v2 (Quotient rule )
Thus the differential coefficients of the quotient of two functions of x is equal to the
denominator times the differential coefficient of the numerator times the differential
coefficient of the denominator all divided by the square of the denominator.
Example . Find dy
dx when y = 1−x
1+x
d(1−x) d(1+x)
dy 0 (1+x) dx −(1−x) dx
Solution: dx = f (x) = (1+x)2
(1+x)(−1)−(1−x)1
= = −2 2
(1+x)2 (1+x)


Example . Find dy
dx when y= sin x
x
d(sin x) d(x)
x dx −(sin x) dx
dy 0 x cos x−sin x
Solution: dx = f (x) = x 2 = x2

√
Example . Differentiate y = 2x − 5x2 + x
Solution: y = 2x−1 − 5x2 + x1/2
dy 0 −2 − 10x + 1 x− 12 = −2 1
dx = y = −2x 2 x2
− 10x + 2√ x


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HBC 2110 MANAGEMENT MATHEMATICS 1

√

Example . f (x) = y = x2 + x 1x − 1

dy 0 0 √
   
= y = f (x) = x2 + x − x12 + 2x + 2√ 1 1


Solution: dx x x −1
√  − x2 +√x
(−x2 − x) (1−x) ( )

1 1−x
= x2
+ x 2x + 2√x = x2
+ 2 − 2x + 3/2
2x


More Revision Questions

1. Differentiate (Not from first principles)
√ 2
(i) y = x4 + x53 + 3 x (ii) y = xx3 −2
+1
2 3 2
−3x+17
(iii) y = 1−t
t3
(iv) h (x) = 2x +x2x−5
  
1

(v) f (t) = (vi) g (x) = 1x − x22 / x23 − x34
(t+1/t )2
x3 − 21
(viii) g (y) = 2y 3y2 − 1 y2 + 2y + 3
x +1



(vii) f (x) = x4 + 1
x2 +1
3 2
(ix) g (t) = 2t1 − 3t12 (x) f (x) = 2x −3xx2+4x−5
(xi) f (t) = 2 4 2 (xi) h (w) = w+10
w2
(t −3)
2. Differentiate from first principles
(i) 4x2 + x (ii) x12 (iii) x3 + x2
1 1
(iv) 2−x (v) √x+2

The differential coefficients of sin x and cos x

The functions f (x) = sin x and g(x) = cos x are differentiable for all x and that
0 0
f (x) = cos x and g (x) = − sin x
proof:
Recall;
lim lim
1. sin h = 0 and cos h = 1
h→0 h→0

lim sin h lim cos h lim sin h

h = 1 = 1 (by De L’Hopital’s rule) ∴ h
h→0 h→0 h→0

lim 1−cos h lim

h = sin h = 0
h→0 h→0

lim x2 −4 lim (x−2)(x+2) lim

2. x−2 = x−2 = x+2 = 4
x→2 x→2 x→2

lim x2 −4 lim 2x
By De L’Hopital’s rule; x−2 = 1 =4
x→2 x→2

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HBC 2110 MANAGEMENT MATHEMATICS 1

lim x3 −8 lim (x−2)(x2 +2x+4) lim

3. x−2 = x−2 = x2 + 2x + 4 = 12
x→2 x→2 x→2

lim x3 −8 lim 3x2

By De L’Hopital’s rule; x−2 = 1 = 12
x→2 x→2
Recall also the factor
1) cos P + cos Q = 2 cos P+Q
2 cos 2
P−Q

2) cos P − cos Q = −2 sin P+Q P−Q

2 sin 2
3) sin P + sin Q = sin P+Q P−Q
2 cos 2
4) sin P − sin Q = cos P+Q P−Q
2 sin 2
0 lim h f (x+h)− f (x) i
Let f (x) = sin x, f (x) = h
h→0

0 lim h sin(x+h)−sin x i lim  sin x cos h−cos x sin h−sin x 

f (x) = h = h
h→0 h→0

lim 
cos x sinh h − sin x 1−cos h


h ,
h→0
NB sin (A + B) = sin A cos B + cos A sin B
lim sin h lim 1−cos h
cos x h − sin x h = cos x
h→0 h→0
d
∴ dx (sin x) = cos x
0 lim h g(x+h)−g(x) i
Let g (x) = cos x, g (x) = h
h→0

0 lim h cos(x+h)−cos x i
f (x) = h ,
h→0
NB cos(A + B) = cos A cos B − sin A sin B
lim  cos x cos h−sin x sin h−cos x 
= h
h→0

lim 
− sin x sinh h − cos x cos h−1


h ,
h→0

lim sin h lim cos h−1

− sin x h − cos x h = − sin x (1) − cos x (0) = − sin x
h→0 h→0
d
∴ dx (cos x) = − sin x

Example . Differentiate y = 3x2 + cos 2x from the first Principles

0 lim h f (x+h)− f (x) i
Solution: f (x) = 3x2 + cos 2x, f (x) = h
h→0

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HBC 2110 MANAGEMENT MATHEMATICS 1

0 lim h 3(x+h)2 +cos 2(x+h)−3x2 −cos 2x i

f (x) = h
h→0

lim h 3x2 +6xh+3h2 +cos 2x cos 2h−sin 2x sin 2h−3x2 −cos 2x i

= h
h→0

lim h 6xh+3h2 −2 sin(2x+h) sin h i lim 

6x + 3h − 2 sin (2x + h) sinh h

= h =
h→0 h→0
= 6x − 2 sin 2x


Example . y = cos x
1−sin x
0
Solution: y = − sin x(1−sin x)−cos2 x(− cos x)
(1−sin x)
− sin x+sin2 x+cos2 x
= = 1−sin x 2 = 1−sin1
(1−sin x)2 (1−sin x) x


More Revision Questions

Differentiate
√
1. y = x + 1/4 sin (2x)2 2. y = sin (cos x)
√
3. y = sin x + sin x 4. h (x) = x2 + h1/x
5. h (x) = 3x2 − 5 cos πx2

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HBC 2110 MANAGEMENT MATHEMATICS 1

LESSON 10
Power rule for derivatives

Learning outcomes
Upon completing this topic, you should be able to have basic concepts in;

• differentiation of polynomials using power rule

• time value of money, investment and annuities

10.1. Power rule for derivatives

If f (x) = xn , where n is any real number, then the derivative of f(x) is f 0 (x) = nxn−1 .
The Power Rule for Derivatives is easy to apply to functions where the function
has the form of a variable raised to a constant. In addition, any function such as
a root function that can be converted to a variable raised to constant can also be
differentiated with the Power Rule for Derivatives.
Example . Find the derivative of y = x2
Solution:
dy d
 2 2−1 = 2x
dx = dx x = 2x 

10.2. Derivatives of a Product with a Constant

d
If a is a real number and f (x) is a differentiable function, then dx [a f (x)] = a f 0 (x).
This rule tells us that the derivative of a constant times a function is equal to the
constant times the derivative of the function.
Example . Find the derivative of y = 5x4 − 3
Solution:
dy d
 4  4−1 = 20x3
dx = dx 5x − 3 = 5 × 4x
Simply means that you bring down the power and reduce the power by 1 and also
when you differentiate a constant you get zero. 
√
Example . Find dy
dx given that y = x
Solution:
1
y = x2
dy 1 12 −1 −1
dx = 2 x = 12 x 2 = 1
√
2 x


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HBC 2110 MANAGEMENT MATHEMATICS 1

Example . Find the derivative of the following, y = 3x3 + 23 x2 − 2x

Solution:
dy d
 3 3 2 
dx = dx 3x + 2 x − 2x
= 3 × 3x3−1 + 2 × 23 x2−1 − 2x1−1 = 9x2 + 3x − 2 

E XERCISE 44.  Find the derivative of each of the following

y = x10 − 5x2 − 3
√
y= 4x
y = 2x−2 − 43 x3 + 25x

10.3. Time value of money and its role in project appraisal

- This is a concept that is based on the belief that “a monetary unit today (e.g. a
shilling or a dollar) is worth more than a monetary unit tomorrow (at a future date)”.
- Accordingly, investors prefer earlier receipt of cash flows to later receipts. This
concept is also called time preference for money. This investor behavior is caused
by the following reasons:

• Consumers are considered to have a subjective preference for current con-

sumption. They consequently prefer early cash flows to facilitate this con-
sumption.

• Earlier cash flows present a chance to invest in currently available investment

opportunities. Accordingly delaying such payments leads to lost investment
returns that would otherwise have resulted from the investment.

• The future is associated with risks and uncertainties i.e. in is impossible to

tell whether amounts in the future will actually be received, or whether the
investor would still be available in the future to enjoy the future value of the
money.

• Money is usually exposed to inflation risk where passage of time corresponds

with a general tendency for increase in prices which reduces the purchasing
power of money.

- Time value of money implies that the use of money in the future rather than the
preferred present has an opportunity cost. This is the cost of foregoing the present
consumption.

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HBC 2110 MANAGEMENT MATHEMATICS 1

- It is usually presented as a percentage rate normally cost the cost of capital or a

discounting rate.
- The cost of capital is the rate of return that an individual/investor must be assured
to earn on his funds in order to suspend his consumption to a future period. The
rate in useful in translating monetary values over time periods i.e. future expected
amounts to their present equivalent and vice versa.

10.3.1. Future Value

- This is the value of a present amount at a future date, found by applying a com-
pound interest over a specific period of time. The process of computing future
values is referred to as compounding. The various forms of compounding include:

• Future value of a simple amount: this is the future equivalent of a present

amount that earns a simple interest compounded once every period.

Future value=present value(1+cost rate)^n

= PV (1 + R)n
Where n is the number of periods to the future
E XERCISE 45.  An investor deposits Sh.100,000 in a bank account that attracts a
5% interest each year. How much will the investor have at the end of one year, two
years, four years and five years respectively if compounding is done annually?
Solution
Future Value=PV (1 + R)n
If n=2, then
5 2
Future value=100000(1 + 100 ) = 100000(1.05)2 = 110250

• Frequent compounding: this arises when compounding is done more fre-

quently than annually e.g. semi annually, quarterly, monthly, weekly, daily,
continuously or other frequent basis.

FV = PV (1 + mr )mn , for continuous compounding

Where m is the number of times compounding is done in the course of the year.
Illustration:
Assume that Sh.120,000 is invested in a bank account that pays interest at the rate
of 24% p.a. for three years. How much will the money amount to if compounding
is done annually; semi annually; quarterly; monthly; daily or continuously.

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HBC 2110 MANAGEMENT MATHEMATICS 1

• Future value of an annuity

- An annuity is a stream of equal annual cash flows. It is also taken as a series of

equal receipts or payments made at fixed intervals for a specified number of periods.
When the cash flows occur continuously into the infinity, it is a special form of an
annuity called perpetuity.
- An annuity where cash flows occur at the end of each defined period is called an
ordinary annuity.
- For an annuity due, cash flows usually occur at the beginning of each of the spec-
ified periods.
FVA = PV [(1 + r)n − 1]/r
Where FVA is the future value of an annuity
Illustration
If you deposit Sh.50,000 at the end of each year for three years in a savings account
that pays 15% interest per year, how much will you have at the end of three years?

10.3.2. Present Value

- Present value is the present equivalent of an amount receivable at a future date. In
general, the present of a cash flow due n years in the future is the amount, which if
it were in hand today, would grow to equal the future amount.
- The process of finding present values is called discounting, and it is simply the
reverse of compounding. If you know the present value, you can compound it to
find the future value, while if you know the future value; you can discount it to find
the present value. The various forms of compounding include:

• Present Value of a Simple Amount- This is the current value equivalent of

a simple amount receivable at a specified period in the future

PV = FV (1 + r)−1 , where PV is the present value and FV is the future value

E XERCISE 46.  Compute the present value of Sh.150,000 that will be received
eight years from now if the interest rate is 10%.
Solution
PV = FV (1 + r)−1 = 150000(1 + 100 10 −1
) = 150000(1.1)−1

• Present Value of Cash Flow Streams

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HBC 2110 MANAGEMENT MATHEMATICS 1

-Annuity Annuities can be defined as annuities due or ordinary annuities. Their

present values are determined as defined in the formulae below.
PVAordinary = [1 − (1 + r)−n ÷ r]annuity
PVAdue = [1 − (1 + r)−n ÷ r](1 + r)annuity
Illustration:
Assume an investor expects to receive Sh.180,000 at the end of every year for the
next four years. If his required rate of return is 10%, what is the present value of
this annuity? Would the present value be different if the amounts are receivable at
the beginning of every year?

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HBC 2110 MANAGEMENT MATHEMATICS 1

Figure 10.1: Venn diagram

Solutions to Exercises
Exercise 1.

i)Ac = 2, 3c = 1, 4, 5
ii)(Ac )c = (2, 3c )c = 1, 4, 5c = 2, 3 = A)
iii)(Bc )c = (5c )c = 1, 2, 3, 4c = 5 = B)
Exercise 1
Exercise 2.

i) A ∪ B = a, d ∪ b, c, f = a, b, c, d, f
ii) A ∪C = a, d ∪ a, c, e, f = a, c, d, e, f
iii) B ∪C = b, c, f ∪ a, c, e, f = a, b, c, e, f
iv) A ∪ B ∪C = a, d ∪ b, c, f ∪ a, c, e, f = a, b, c, d, e, f = U
Exercise 2
Exercise 7.

H = Hockey
T = Tennis
B = Basketball
Those who play two and only two games = x + y + z

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HBC 2110 MANAGEMENT MATHEMATICS 1

Using the diagram

(14–x–y) + (10–y–z) + (2–x–z) + 2 + x + y + z = 20
28–x–y–z = 20
x+y+z = 8 Exercise 7
Exercise 15.

2x2 + 3x + 1 = 0

2x2 + 3x = −1

3x 1
x2 + =−
2 2
 2  2
2 3x 3 3 1
x + + = −
2 4 4 2

3 2
 
1
x+ =
4 16
r
3 1
x+ = ±
4 16

3 1
x=− ±
4 4

3 1 3 1
− + or − −
4 4 4 4

1
x = − or x = −1
2
Exercise 15
Exercise 16.

15x2 + 16x = 15

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HBC 2110 MANAGEMENT MATHEMATICS 1

(step 1)
15x2 + 16x–15 = 0

(step 2)
(5x–3)(3x + 5) = 0

Step 3
(5x–3) = 0

3x + 5 = 0

∴ (step 4)
5 3
x = − or +
3 5
Exercise 16
Exercise 17.

a) at break-even points,
C(x) = R(x)

1600 + 1500x = 1600x − x2

x2 − 100x + 1600 = 0

x = 20, x = 80

C(20) = 1600 + 1500•20 = 31600

C(80) = 1600 + 1500•80 = 121600

The break-even points are

(20, 31600), (80, 121600)

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HBC 2110 MANAGEMENT MATHEMATICS 1

b) Demand function:

q = −(1/4)p2 + 400

Supply function:
q = (1/2)p2 − 275

at market equilibrium point, supply equals demand.

−(1/4)p2 + 400 = (1/2)p2 − 275

−(3/4)p2 = −675

p2 = 900

p = 30, (p = −30 not valid)

q = (1/2)•(30)2 − 275 = 175

the equilibrium price is $30, the equilibrium quantity is 175. Exercise 17

Exercise 23.

1
log5 ( ) = −3
125

since
1
5−3 =
125
Exercise 23
Exercise 24.

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HBC 2110 MANAGEMENT MATHEMATICS 1

log5 36 = log5 (22 32 )

= log5 22 + log5 32
= 2log5 2 + 2log5 3

Exercise 24
Exercise 25.

The amount of money in the bank after t years is

A = 1000(1.08)t

Set the final amount to $2,000 (doubling time).

2000 = 1000(1.08)t

OR

2 = (1.08)t

Take a logarithm on both sides

ln 2 = ln 1.08t

Use the power rule of logarithms

ln 2 = t ln 1.08

ln 2
t=
ln 1.08

= 9.0 years

Exercise 25
Exercise 27.

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HBC 2110 MANAGEMENT MATHEMATICS 1

−5x + 4 ≤ 2x − 10

−7x + 4 ≤ −10

−7x ≤ −14

x≥2

Exercise 27
Exercise 28.

−3 ≤ 2x + 1 ≤ 7

−4 ≤ 2x < 6

−2 ≤ x < 3

Exercise 28
Exercise 30.

Steps
Determine objective function (follow the money)
Determine constraint functions (same variables)
x= number of acres of corn
y= number of acres of soybeans

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HBC 2110 MANAGEMENT MATHEMATICS 1

i Maximize
P = 60x + 90y

ii. land constraint:

x + y ≤ 320

$ constraint:
50x + 100y ≤ 20, 000

storage constraint:
100x + 40y ≤ 19, 200

non-negative constraints:
x ≥ 0, y ≥ 0

Exercise 30
Exercise 31.

x= number of lbs. of aluminum wire

y= number of lbs. of copper wire
Maximize
P = 25x + 40y

Constraints:
y ≤ 60

5x + 2y ≤ 500

25x + 5y ≤ 40

x ≥ 0, y ≥ 0

Exercise 31
Exercise 32.

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HBC 2110 MANAGEMENT MATHEMATICS 1

x= regular sofas made in Hickory

y= long sofas made in Hickory
z= regular sofas made in Lenoir
w= long sofas made in Lenoir
$ constraint at Hickory:
150x + 200y ≤ 45, 000

Hickory sofa limit:

x + y ≤ 300

$ constraint at Lenoir:
135z + 180w ≤ 36, 000

Lenoir sofa limit:

z + w ≤ 250

regular sofa limit:

x + z ≤ 250

long sofa limit:

y + w ≤ 350

non-neg:
x ≥ 0, y ≥ 0, z ≥ 0, w ≥ 0

Maximize profit
P = 50x + 70y + 50z + 70w

Exercise 32
Exercise 33.

Using the quadratic formula below to solve the equation above

p
−b± (b2 − 4ac)
2a
Where a = 15, b = 25, c = −6000
p
−25± 625 − 4(15)(−6000)
2(15)

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HBC 2110 MANAGEMENT MATHEMATICS 1

= (−25 ± 600.52)/30

Where by

n = (−25 + 600.52)/30 = 19.18

or

n = (−25 − 600.52)/30 = −20.85

The value,n = −20.85 is meaningless as n is positive integer. Hence Kabana will

pay the entire amount in 19 months. Exercise 33
Exercise 35.

sn = n/22a + (n − 1)d

s31 = 31/22a + (31 − 1)100

124, 000 = 31/22a + 30, 000

8, 000 = 2a + 3000

5, 000 = 2a

a = 2500

Exercise 35
1 x 1



Exercise 40. Let y = 1 + x , then ln y = x ln 1 + x
Let z = 1x , then x = 1z ∴ ln y = 1z ln (1 + z)
as x → ∞, z → 0
lim ln(1+z) lim 1/1+z
z = 1 =1
z→0 z→0

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HBC 2110 MANAGEMENT MATHEMATICS 1

as x → ∞, z → 0 and ln y → 1=⇒ y → e
lim
x
∴ 1 + 1x = e
x→∞
Exercise 40
lim lim sin x lim cos x
Exercise 41. h (x) = x = 1 = 1 whereas h(0) = 0.
x→0 x→0 x→0
=⇒The limit and the value of h at x = 0 are not equal. Thus the function h is not
continuous there.
Exercise 41
Exercise 42. f (x) = xn , n > 0
0 lim h f (x+h)− f (x) i
f (x) = h
h→0

f (x) = xn , + n(n−1)
f"(x + h) = (x + h)n = xn + nxn−1 h # 2! x
n−2 h2 + · · · + hn
 
n(n−1)
0 lim xn +nxn−1 h+ 2! xn−2 h2 +···+hn −xn
∴ f (x) = h
h→0
 
lim nxn−1 h+
n(n−1) n−2 2
2! x h +···+hn
= h
h→0

lim
= nxn−1 + n(n−1)
2! x
n−2 h + · · · + hn−1 = nxn−1
h→0
Exercise 42
0
Exercise 43. f (x) = 10x9 Exercise 43

83