CHAPTER I

Introduction

Sub Topics
I Formula.
II Algebra
III Application in Business
I Problems

I Formula

General Form of a formula,

In a formula, there is a relationship between dependent variable with independent
variable.

Example of a formula
P= A (1+i)n

Where :
P is dependent variable
A, I, and n are independent variable

Finding the value of variable in a formula

When the value of independent variable is given, then the value of dependent
variable can be calculated.

We can change an independent variable to be a dependent variable and vice versa

through crossing to other side , where :

• Operation + change become operation - and vice versa

• Operation x change become operation : and vice versa
• Power change become radical vice versa

We can also take the logarithm of both sides.

Example 1
P= A (1+i)n

Find the value of P when A=10, i=0,1 and n=2

Answer:
P= 10(1+0,1)2
= 10(1, 1)2
= 10x 1,21 =12,1

1
Example 2.

PRT
I= ⎯⎯
100

Make the variable P to be a dependent variable.

Answer:
100 I = PRT
PRT = 100 I

100 I
P = ⎯⎯
RT

2
II Algebra
Algebra Operation
Algebra operation are power, product and sum..

Algebra operation Hierarchy

Algebra operation Hierarchy is power, product and sum
Example:
5+3 x 24 = 5+3 x 16 = 5 + 48 =53

Algebra Expression

Algebra expressions are written using mathematical symbols and notations.

Example of an algebra expression

2x-5
(x +1 ) (x-1)
x2 + 2

Algebra expressions can be expanded or simplified.

Expanding(memperluas) and simplifying algebra expression

Example: Expanding algebra expression

(x +1) (x-2) = x2 -x -2

Example Simplifying algebra expression

2x -10 -3x + 5x + 8 = 4x -2

III Application in Business

Example , application of formula and algebra on profit, Loss, and Trade

Discount

Formula Profit/Loss (Laba/Rugi)

L = HJ - HP or
HJ = HP + L
Where: L =Profit, HJ=Selling Price, HP =Cost Price

3
 L= %L x HP
HJ = HP + %L x HP
= HP(1+%L)

Formula trade discount

HB= HD – D
=HD – %d x HD
=HD (1-%d)
where :HD=List Price(Harga daftar) , HB=Net Price (harga bersih), %d=(trade
discount)prosentase potongan dagang, D= Discount

Application in Stock(Share) Transaction

Fomula for Profit or Loss if we buy and sell shares through a securities company:

U = Hj - Hb – Fb - Fj

where

HJ (Selling Price/Harga Jual)= N x Hjl where N=Number of shares and

Hjl=Selling price.per share (harga jual perlembar)
Hb (Purchasing Price/Harga beli)= N x Hbl where Hbl=(Purchasing Price/ per
share (harga beli perlembar)
Fj (Selling Fee ) = %Fj x HJ
Fb (Purchasing Fee) = %Fb x Hb

The Formula above is the sam as:

U = (Hj - Fj) - (Hb + Fb)

U = (1-%Fj)Hj - (1+%Fb)Hb
U = (1-%Fj) x Nx Hjl - (1+%Fb) x N x Hbl

Example:
An investor bought PT X share at securities company 20 lots (1 lot =500 Shares)
at price Rp 2000/share. When the price went up to Rp 2300/share , all shares were
sold. The securities company charged purchasing fee and selling fee 0.4% and
0.6% respectively. Find the profit or loss?

Answer:
N=20 x 500 = 10000
Hjl = 2300, Hbl = 2000
U= (1-0,6%)x10000x2300 – (1+0,4%)x10000x2000
= 0.994 x 23 million – 1.004 x 20 million
= 22862000 – 20080000
= 2782000

4
IV Problems
Problem 1
See formula: NPV = 5/(1+I) + 4/(1+I)2 – IN
Find the valuve of NPV if I=0,2 and IN=6
Problem 2
Cost price of an item is Rp 800,000 and profit is 15%, find the selling price?
Problem 3
Find the net price of a TV with a list price Rp 1,200,000 and trade discount 15%
Problem 4
Find the trade discount of a computer with list price Rp 5,000,000 and net
price Rp 4,000,000

5
 BAB II
Linear Equation

Sub Topics
I. Equation
II. Linear Simultaneous Equation
III Application in business
IV. Problems

I Equation

Linear Equation

Example.
5X – 4 = 3X + 2

Solution of a linear equation

Solution a linear equation is value of x which meet the equation.
Example.
6X – 5 = 4X + 3
Solution:
6X –4X = 3 + 5
2X = 8
X =8/2 =4
Solution: X=4

II Linear Simultaneous Equation/(LSE)

The form of Linear Simultaneous Equation

Linear Simultaneous Equation consist of several linear equation.
Example 1.
2x - y = 1 (equation 1)
x + 2y = 4 (equation 2)

Example 2.
3x + 5 y = 19 (equation 1)
4x - 3 y = 6 (equation 2)

Steps To Find solution

⇒ Solution of a Linear Simultaneous Equation is a value of variable x or y that meet

all equations in a Linear Simultaneous Equation.
⇒ To find the solution, we can use substitution method and elimination method.

6
Subsitutution method
In this method, we have substitute a variable with other variable.

Example 1.
5x - 2y = 2 (1)
2x + 2y = 12 (2)

Using Substitution Method.

(1) 5x - 2y = 2
⇔ x = (2 + 2y)/5

(2) 2x + 2y = 12
⇔
2 ((2 + 2y)/5 )+ 2y = 12
⇔
(4 + 4y)/5 + 2y = 12
⇔
4/5 + 4y/5 + 2y = 12
⇔
14/5 y = 12 -4/5
⇔
14/5 y = 56/5
⇔
y =4
(1) 5x - 2y = 2
⇔ 5x - 2 (4) = 2
⇔ 5x - 8 = 2
⇔ 5x = 10 ⇔ x = 2

Elimination Method

In this method, firstly we have to eliminate a variable.

Example 2.

6x +2y = 20 (1)x1
2x + y = 8 (2)x2
⎯⎯⎯⎯⎯ -
2x =4
x =2

Continue to find the value of variable y

(1) 6x + 2y = 20
⇔ 6 (2) +2y = 20
⇔ 2y = 20-12
⇔ 2y = 8
⇔ y = 4

7
Problems

Problem 1
Find the solution of the following Linear Simultaneous Equation using substitution
method.:
40x + 50y = 2000 .........(1)
20x - 25y = 0 .........(2)

Problem 2
Find the solution of the following Linear Simultaneous Equation using elimination
method.:
100x + 200y = 2000 .........(1)
150x + 150y = 1950 .........(2)

Problem 3
Find the solution of the following Linear Simultaneous Equation using elimination
method.:
15x + 10y = 600...........(1)
30x - 15y = 150...........(2)

III Application in business

Example
The cost of 10 shirts and 5 ties is Rp. 1,150,000. The cost of 8 shirts and 6 ties is
Rp. 1,020,000. Find the cost of a shirt and a tie.

Let
x =The cost of a shirt
y= The cost of a tie

Linear Simultaneous Equation:

10x + 5 y = 1,150,000………..(1)x4
8x + 6y = 1,020,000………(2)x5.

Solution:

40x + 20y = 4,600,000.......(1)

40x + 30y = 5,100,000.....(2)
⎯⎯⎯⎯⎯ ⎯⎯⎯ -
-10y = -500,000
y = 50,000

Continue to find the value of variable x

(1) .... 10x + 5 (50,000) =1,150,000

8
 ⇔10x + 250,000 = 1,150,000
⇔10x =900,000
⇔x = 90,000

So, a shirt cost Rp 90,000 and a tie cost Rp. 50,000

IV Problems
Problem 1
Find the solution of:
3(2X – 4) = 2(X-1) + 7

Problem 2
Find the solution of
3x - y = 9 (equation 1)
2x + 2y = 22 (equation 2)

Problem 3
The cost of 3 TV and 5 AC is Rp. 26 million. The cost of 4 TV and 2 AC is Rp.
16 million.. Find the cost of 5 TV and 3 AC.

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V Linear Simultaneous Equation (LSE)With Three Variable

Example:

An electronic shop received invoices (faktur) from factories. Invoice I contains 6 TVs,
7 computers, and 1 ACs worth (seharga) 30 million. Faktur II, contains 4 TVs, 2
computer, and 3 ACs worth 25 million. Faktur III, contains 10 TVs, 3 computer, and 6
ACs worth 50 million. How much price of TV, computer, and AC per unit ?

Let X=Price of TV per unit, Y= Price of computer per unit, Z= Price of AC per unit,

LSE 3 variables:
(1) …..6X + 7Y + Z = 30
(2) …..4X + 2Y + 3Z = 25
(3) …..10X + 3Y + 6Z = 50

Steps to find solution

Step 1
Eliminate a variable and establish 2 equations of the rest variables.

Let, eliminate Z
Combine (1) and (2)

(1)…..6X + 7Y + Z = 30 x 3
(2)…..4X + 2Y + 3Z = 25 x 1
_________________________ -
(4)….14X +19Y = 65

Combine (1) and (3)

(1)…..6X + 7Y + Z = 30 x 6
(2)….. 10X + 3Y + 6Z = 50 x1
_________________________ -
(5)….26X +39Y = 130

Step 2
FInd solution of equation (4) and (5)

(4)….14X +19Y = 65 x 39
(5)….26X +39Y = 130 x 19
__________________________ -
52X =65
X =65/52 =1,25

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Find Y
(4) ….14 x 1,25 + 19 Y =65
19Y = 65 -17,5 = 47,5
Y =47,5/19 =2,5

Step 3
Find the solution of the variable which has been eliminated in step 1 ( variable Z)

(1) …..6X + 7Y + Z = 30
6 x 1,25 + 7x 2,5 + Z = 30
Z = 30- 7,5 -17,5 =5

Solution X =1,25
Y= 2,5
Z=5

Problem 1
An investor bought PT X share at securities company 5000 Shares at price Rp
2000/share. When the price went up to Rp 2200/share , all shares were sold. The investor
got profit Rp 890.000. At the same securities company the investor also bought PT Y
10000 shares at price Rp 1500/share . When the price went up to Rp 1600/share , all
shares were sold. The investor got profit Rp 835.000. Find purchasing fee and selling
fee respectively charged by the securities company?

Problem 2
Mr Ali deposit at Bank A and Bank B 10 million and 15 million respectively. He got
total interest amount Rp 290.000/month. Badu also deposit at Bank A and Bank B 12
million and 20 million respectively. He got total interest amount Rp 372.000/month.
Find interest rate/month given by Bank A and Bank B respectively?

Problem 3.
If we deposit at Bank A ,Bank B, and Bank C 10 million, 15million and 20 million
respectively, the total interest amount Rp 527,500/month. If we deposit at Bank A ,Bank
B, and Bank C respectively 15 million, 20million and 5 million, the total interest amount
Rp 485,000/month. If we deposit at Bank A ,Bank B, and Bank C respectively 8 million,
10million and 10 million, the total interest amount Rp 331,000/month. Find interest
rate/month given by Bank A, Bank B and Bank C respectively?

Problem 4
An Electronic shop received two invoices from a factory. The invoice contains 6 TV, 7
computer, and 1 AC. They are worth(berharga) 30 millions. The invoice II contains 4
TV, 2 computer, and 3 AC .They are worth 25 million. The invoice III contains 10 TV,
3 computer, and 6 AC. They are worth 50 million. How much are 3 TV, 2 compouter,
and 4 AC worth?

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 CHAPTER III
Linear function And Non Linear function

Sub Topics
I. General form of linear function
II. Linear function graph
III Quadratic function and others non linear function
IV Application in business
V. Problems

I General form of linear function

a. General form

Y = aX + b

Where:
X= independen variable
Y= dependen variable
a=gradient
b=constant
b. Example

Y= 3X +4

If the value of X=5 then Y=3 .x 5 + 4 = 19

If the value of X=1 then Y=3 .x 1 + 4 = 7

II Graph linear function

Steps

• Modify the equation become : y = ax + c

• Create a coordinate system with x axis (horizontal line ) and y axis (vertical line) .
• Determine two (x.y) pairs and create two points in the coordinate system
• Draw a line through the two points.

Example
4x -2y = 6
Create a graph based on the equation:
Modify the equation become y = 2x + 3
Determine two (x.y) pairs. for example : ( 0.3) and (2.7)
The Graph is:

12
 16
14
12
10
8
6
4
2
0
-4 -2 -2 0 2 4 6
-4

GRAPH OF LINEAR SIMULTANEOUS EQUATION

Is combination of several graph of linear function.

Solution of linear simultaneous equation is intersection of the graph

Example
Linear Simultaneous Equation:
2x - y = -1
4x -y = 1

Its solution is x=1 and y=3

Intersection of the graph is (1.3)

Graph:
25

20

15

10

0
-4 -2 0 2 4 6
-5

-10

-15

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III Quadratic function and others non linear function

a.General for of quadratic function

Y = a X2 +bX + c
Where :
X= independen variable
Y= dependen variable
b. Example 1

Y= 2X2 +X -10

If the value of X=1 then Y=2 . 12 +1 –10 = 2 + 1 –10 =-7

If the value of X=3 then Y=2 . 32 +3 –10 = 18 + 3 –10 = 11

c . Non Linear Function : Quadratic Function

Example:
Y = (X +1 )n
For n= 5 then the function is :
Y = (X +1 ) 5

If the value of X=2 then Y=(2 +1 ) 5=(3) 5 =243

If the value of X=3 then Y=(3 +1 ) 5=(4) 5 =1024

IV Application in business

Problem
A power plant in generating electricity. need fixed cost to purchase generator and other
equipments amounts $2 million. To generate electricity. it need variable cost amounts
$0.04 per KWH. The electricity is sold amounts $0.08 per KWH.

1. Find an equation which describe total cost and total revenue

2. Find the quantity of electricity produced so total cost is equal to the total revenue
3. Create graphs which describe total cost and total revenue equation. Look at carefully
the intersection.
4.
Answer

1 Total cost: Y = 2 million + 0.04 X

Total revenue: Y =0.08 X
Where : X = quantity of electricity(KWH).

14
2.. Total cost = total revenue
2 million + 0.04 X = 0.08 X
0.08 X –0.04 X = 2 million
0.04 X = 2 million
X = 2 million/ 0.04 = 50 million KWH

3. Graph:

6
5
4
3
2
1
0
0 10 20 30 40 50 60 70

V Problems
Problem1
Y= -4X +8

If the value of X=0 then Y=…..

If the value of X=-1 then Y=…..
If the value of X= 2then Y=…..
Create the graph

Problem2
Consider two functions as follows:
Y = 2X + 3 and Y = -3X + 13
Find the solution
Create the graph

15
Additional Application

BREAK EVEN POINT/BEP

(TITIK PULANG POKOK)

Cost Function:
Tc = Fc + Vc where` Vc=Cu X so:
Tc =Fc +Cu X (function cost)
Note: Tc =Total Cost. Vc=Variable Cost. Fc= Fixed Cost. Cu=Cost per Unit. X=quantity.

Revenue Function
Tr = Ru X
Note:
Tr=Total Revenue. Ru=Revenue per unit

The BEP is satisfied if TR=TC or Ru X=Fc + Cu X

Example:

A brick (bata) factory need fixed cost amounts Rp 12 million. A brick need variable
cost Rp 400/unit. The bricks are sold with the price Rp 1000/unit .
a. Find cost function
b. Find revenue function
c. Find BEP

Cost Function: Tc = 12 million + 400 X

Revenue Function : Tr = 1000 X
BEP:
Tr = Tc
1000 X = 12 million + 400 X
1000 X - 400 X = 12 million
600 X =12million
X= 12 million/600
X= 20 thousands

BEP is found at X=20 thousands.

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Supply( Penawaran/Persediaan) dan Demand( permintaan).

Variable:
P= Price (Harga)
Q=Quantity(kuantitas)

Note:
Demand(D)
The higher is the price the lower is the demand quantity. Conversely, The lower is the
price the higher is the demand quantity.

Demand Function:

P = a Q + b . where a is negative . (The Graph decrease/ turun) It is called demand

curve.

Supply(S)
The higher is the price the higher is the supply quantity. Conversely, The lower is the
price the lower is the supply quantity.

Supply Function:

P = a Q + b . where a positive (The Graph increase/naik) . It is called supply curve

Market Equalibrium(Titik keseimbangan pasar).

Intersection between supply curve and demand curve is called market equilibrium(E)

Example:
Given demand function: P=-0.5 Q +11 and supply function: P= 0.25 Q + 6.5 . where
P=harga dan Q=quantity.
a. Find the market equilibrium
b. Make supply curve and demand curve . Determine point E.

17
Depreciation
Most fixed asset decrease in value or depreciate as they grow older. The accountant
need to estimate depreciation of the fixed asset. The also need to estimate to estimate
book value of an item(fixed asset) .

Methods of depreciation:
1. Straight line (garis lurus)
2. Reducing balance (saldo menurun)
3. Others

Variables
• Original cost /Harga perolehan(Hp)
• Economic age /Umur Ekonomis(Ue)
• Scrap value/Nilai Sisa(Ns)
• Book Value/Nilai Buku(Nb)
• Depreciation(Dp)

Straight line method.

Formula:

Depreciation per annum (year)

Hp – Ns
Dp =
Ue

Book Value at the end of periodic (year) t

Nbt = Hp – Dp . t

Accumulation of depreciation for t years ADt

ADt = Dp . t
So, :
Nbt = Hp – ADt

Depreciation Table:

Year Dp Ad Nb
1
2
.
.
Ue

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Reducing Balance Method
Formula:

Dpt = Nb(t-1) . i where i = depreciation rate (tariffdepresiasi)

So, :
Dp1 = Nb0 . i ingat: Nb0 = Hp

Dp1 = Hp . i
Nb1 = Hp –Dp1 =Hp –Hp i = Hp(1 –i)

Dp2 = Nb1 . i
Nb2 = Nb1 –Dp2 = Nb1 –Nb1 i = Nb1 (1 –i)= Hp(1 –i)(1-i)= Hp(1 –i)2

……………………

Nb3 = Hp(1 –i)3

So:

Nb3 = Hp(1 –i)3

19