TABLE OF CONTENTS This chapter is an introduction to algebra and algebraic equations. It is aimed for readers who feel that they need an algebra review for understanding and working with simple algebraic equations. It also introduces some financial functions that are used with Excel.
Algebra is the branch of mathematics in which letters of the alphabet represent numbers or a set of numbers. Equations are equalities that indicate how some quantities are related to others. For example, the equation
is a relation or formula that enables us to convert degrees Fahrenheit, F, to degrees Celsius, C. For instance, if the temperature is 77 F, the equivalent temperature in C is
We observe that the mathematical operation in parentheses, that is, the subtraction of 32 from 77, was performed first. This is because numbers within parentheses have precedence (priority) over other operations.
In algebra, the order of precedence, where 1 is the highest and 4 is the lowest, is as follows:
Quantities inside parentheses ( )
Exponentiation
Multiplication and Division
Addition or Subtraction
Simplify the expression
Solution:
This expression is reduced in steps as follows:
Step 1. Subtracting 3 from 8 inside the parentheses yields 5. Then, 
Step 2. Performing the exponentiation operations we get 
Step 3. Multiplying 25 by 4 we get 
Step 4. Dividing ? 8 by 100 we get a
