5.

PROBLEM
Find two non negative numbers whose sum is 15 such that the product of one
with the square of the other is maximum.

Solution:
x = one of the numbers
15 – x = other number
P = x(15 – x)2
dP
= x(2)(15 - x)(- 1) + (15 - x)2
dx
2x(15 – x) = (15 – x)2
2x = 15 – x
3x = 15
x=5
15 – x = 10
The numbers are (5 and 10).
6. PROBLEM
A company determines that in the production of x units of a commodity its
revenue function R(x) = - 3x2 + 970x. Find the revenue gained from the
production of the forty-first unit. Approximate this value by means of the
marginal revenue.

Solution:

R(x) = - 3x 2 + 970x
R(40) = - 3(40)2 + 970(40)
R(40) = 3400
R(41) = - 3(41)2 + 970(41)
R(41) = 34727
Revenue gained from production
of the forty-first unit:
R = 34727 - 34000
R = 727 units of dollars.
7. PROBLEM
The product of the sides of the triangle (AB)(BC)(CA) is 51840. If the area of the
triangle ABC is equal to 539.32 sq.m., find the distance from the vertex A to the
intersection of the perpendicular bisectors of the sides of the triangle.

Solution: B

abc
A△ =
4r
51840 A r
539.32 = C
4r
r = 24.03 m
8. PROBLEM
The area of square ABCD is equal to 100 sq.cm. EFGH is another square inside
the square ABCD which forms four identical trapezoids in between the two
squares which has an area of 16 cm2 each. EF is parallel to AB and HE is parallel
to AD. Find the altitude of each trapezoids formed between the two squares.

Solution:
Area of all trapezoid :
(x + 10) 10
A= (h)(4)
2 h h
A = 100 - x 2 E x F
h h
(x + 10)
h = 16
2
x x 10
32
h=
x + 10
(x + 10) h H G h
h(4) = 100 - x 2 x
2 h h
(x + 10)(32)(4)
= 100 - x 2
(x + 10)(2)
100 - x 2 = 64
x 2 = 36
x=6
32
h= = 2 cm
6 + 10
9. PROBLEM
Smith, Jones, and Rodriguez purchased a sophisticated copier for $9000. During
the fourth year of ownership, the copier is sold for $3000. What is the recaptured
depreciation? Copiers have 5 year recovery period and the total depreciation
claimed through year 3 is 71.2%.

Solution:
Implied book value = (1 – 0.712)(9000) = $2592
Sales price exceeds by (3000 – 2592) = $408
Therefore the amount of $408 is the recaptured depreciation.
10. PROBLEM
A new municipal pool would cost $1.2M to build and $200K per year to operate.
The pool would have no salvage value after 25 years. The benefit of having the
pool is about $450K per year. Usng Present Worth, calculate the benefit cost
ratio with i = 6%.

Solution:
Equivalent annual cost:

A ⎡⎣(1 + i)n - 1⎤⎦

P=
(1 + i)n i
A1 ⎡⎣(1.06)25 - 1⎤⎦
1200 =
(1.06)25 (0.06)
A1 = 93.87

Total annual cost = 93.87 + 200 = $293.87K

Annual benefits = $450K

Annual benefits
Benefit cost ratio =
Annual cost
450
B/C = = 1.53
293.87
11. PROBLEM
Find the breakeven volume for the annual demand (D) for a proposed project. The
first cost is $30K, the salvage value is 0. N = 10 years, and i = 10%, and the profit
per item is $15.

Solution:

0 1 2 3 4 5 6 7 8 9 10

A A A A A A A A A A

P
30000

A ⎡⎣(1 + i)n - 1⎤⎦

P=
(1 + i)n i
A ⎡⎣(1.10)10 - 1⎤⎦
30000 =
(1.10)10 (0.10)
A = 4882.02
A = D(15)
4882.02 = D(15)
D = 325.5 say 326 items to break even
12. PROBLEM
DVD Rental Movie Mania offers two rental plans. One has an annual fee, and the other has
no annual fee. The annual membership fee and the daily charge per DVD for each plan are
shown on the table. Determine the maximum number of DVD’s that can be rented for the no
fee plan to cost less than the annual fee plan.

Rental Plan Year Fee Daily Charge per DVD

Annual Fee $30 $1.49
No Fee None $2.99

Solution:
2.99 𝑥 ≤ 30 + 1.49 𝑥
2.99 𝑥 = 30 + 1.49 𝑥
x = 20
Maximum no. of DVD’s = 19
2.99 (19) = 30 + 1.49 (19)
56.81 < 58.31 ok
when x = 20
2.99 (20) 30+1.49 (20)
59.8 = 59.8
When we use 20, both have equal cost
When we use 19, no fee plan < fee plan
56.81 < 58.31
When x = 21
2.99 (21) 30 + 1.49 (21)
62.79 > 61.29 not ok
Therefore, use 19 DVD’s
13. PROBLEM
The potential costs of construction (first cost) under the three states of nature
were $225,000, $250,000 and $295,000 with probabilities of 0.2, 0.5 and 0.3
respectively. At the beginning the expected value or mean of this distribution was
calculated to be $258,500. What is the standard deviation of the construction
cost?

Solution:

σ= ∑ x 2 P(x) - µ2 (standard deviation)

∑x2 P(x) = (225000)2 (0.2) + (250000)2 (0.5) + (295000)2 (0.3)

∑x2 P(x) = 6.74825(10)10
µ2 = (258500)2
µ2 = 6.682225(10)10

σ = 6.74825(10)10 - 6.68225(10)10
σ = $25,695 (standard deviation)
14. PROBLEM
At a collectible show, Richard Lane can sell model trains for $35. The
costs for making the trains are a fixed cost of $200 and a production cost
of $15 a piece. How many model trains must Richard sell to make a profit
of $600?

Solution:
P = Revenue – expenses
600 = 35x – (200+15x)
600 = 20x – 200
x = 40
15. PROBLEM
A pizza chain was willing to pay $ 1 to each person interviewed about his
or her dislikes of types of pizza crust. Of the people interviewed, 200 liked
thin crust, 270 liked thick crust. 70 liked both and 50 did not like pizza at
all. What was the total cost of the survey?

Solution:
Thin crust Thick crust

130 70 200

Total cost of survey = 130 + 70 + 200 + 50 = $450

16. PROBLEM
Write an expression for the general or nth term 𝑎* of the sequence 2, 6, 18, 54.

Solution:

6 18 54
𝑟= = = =3
2 6 18

𝑎* = 𝑎0 𝑟 *c0

𝑎* = 2 (3)*c0
17. PROBLEM
An annual maintenance cost for two colored machines of Continental Printing Press are
P1500 for the 1st year and is estimated to increase 10% each year every year. What is the
present worth of the maintenance costs for 6 years if i = 8%?
Hint: Present worth of a Geometric Gradient Series
𝐴[1 − 𝑊 * ]
𝑃=
(1 + 𝑖)(1 − 𝑊)
1+𝑟
𝑤ℎ𝑒𝑟𝑒: 𝑊 =
1+𝑖
r = uniform rate of period by period change
i = annual interest
A = annual cost

Solution:
(1.10)5(1500)
r = 10% i = 8%
1+r (1.10)4(1500)
W=
1+i (1.10)3(1500)
(1.10)2(1500)
1.10 1.1(1500)
W=
1.08 1500

W = 1.0185
0 1 2 3 4 5 6
A ⎡⎣1 - W n ⎤⎦
P=
(1 + i)(1 - W)

1500 ⎡⎣1 - (1.0185)6 ⎤⎦

P=
(1.08)(1 - 1.0185)
P = P8,728
18. PROBLEM
The toll to a bridge cost $ 2.50 commuters whose used the bridge frequently have the option
of purchasing a monthly coupon book for $ 21 with the coupon book, the toll is reduced to $
1.00. The monthly cost y, of using the bridge x times can be described by the formula:
Without the coupon book:
y = 2.50 x
With the coupon book
y = 21 + 1 (x) = 21 + x
How many times in a month must the bridge be used so that the total monthly cost without
the coupon book is the same as the total monthly cost with the coupon book.

Solution:
Let x = no. of times the bridge must be use so that both will have the same cost and y is the
cost.
Without the coupon book (y = 2.5 x)

x y (x,y)
0 2.5 (0) = 0 0,0
2 2.5 (2) = 5 2,5
4 2.5 (4) = 10 4,10
10 2.5 (10) = 25 10,25
12 2.5 (12) = 30 12,30
14 2.5 (14) = 35 14,35
16 2.5 (16) = 40 16,40

With the coupon book (y = 21 + x)

x y (x,y)
0 y = 21 + 0 = 21 0,21
2 y = 21 + 2 = 23 2,23
4 y = 21 + 4 = 25 4,25
10 y = 21 + 10 = 31 10,31
12 y = 21 + 12 = 33 12,33
14 y = 21 + 14 = 35 14,35
16 y = 21 + 16 = 37 16,37

Therefore, the bridge should be used 14 times in a month.

19. PROBLEM
Write the point-slope from and the slope intercept form of the equation of the line
with the slope 4 that passes the point (-1,3).

Solution:
Point slope form: (y – y1 =m (x – x1)
𝑦 − 𝑦0
𝑚=
𝑥 − 𝑥0
𝑦−3
4=
𝑥+1
𝑦 − 3 = 4(𝑥 + 1) (point - slope form)
Slope – intercept form: (y = mx + b)
y – 3 = 4(x+1)
y – 3 = 4x + 4
y = 4x + 7 (slope intercept form)
20. PROBLEM
Determine the sum of the first 5 terms in the geometric sequence whose first term
is 4 and whose common ratio is 2.

Solution:

𝑎0 (1 − 𝑟 * )
𝑆=
1−𝑟

𝑟=2 𝑎0 = 4

4[(1 − 2)3 ]
𝑆=
1−2

4 (−31)
𝑆= = 124
−1
21. PROBLEM
A construction company purchased 100 acres of land to be split into 3 parcels of
land on which to build house. One parcel of land will be 3 times as large as each
of the other two. How many acres of land will each parcel contain?

Solution:
x = no. of acres in the first parcel
x = no. of acres in the 2nd parcel
x = no. of acres in the 3rd parcel
x + x + 3x = 100
5x = 100
x = 20
22. PROBLEM
The illuminance, Ι of a light source varies inversely as the square of the distance
d from the source. If the illuminance is 80 units at a distance of 5m., determine the
equation that expresses the relationship between the illuminance and the
distance.

Solution:
𝑘
Ι=
𝑑9
𝑘
80 =
(5)9
𝑘 = 2000
9nnn
Ι= (relation between the illuminance and the distance)
op
23. PROBLEM
The tens digit of a certain two digit number exceeds the unit digit by 4 and is 1
less than twice the units digit. Find the two digit.

Solution:
u = units digit
t=4+u
4 + u = 2u – 1
u=5
t=4+5
The no. = 9(10) + 5
The no. = 95
24. PROBLEM
Airport express shuttle service provides service from San Antonio International
Airport to downtown hotels, approximately 10 miles away. One particular shuttle
makes 16 round trips per day, carrying 5 passengers per trip. The fare each way
is $18. What are the receipts from one day’s operation for this particular shuttle?

Solution:
Distance from airport to downtown hotels = 10 miles
No. of roundtrips per day = 16
No. of passengers per trip = 5
Fare each way = $18
For a round trip, the cost per passenger = 18(2) = $36
Total receipts for one days operation = 16(5)(36) = $2880
25. PROBLEM
The longitude of San Francisco (USA) is 73˚57’30”W and that of Cebu (Philippines) is
122˚36’15” East. Determine the time in Cebu when it is 2:30 AM in San Francisco.

Solution:
2:30 AM
San Francisco Cebu
0

73˚57’ 30“ 122˚36’ 15“

13h 06m 15sec

Diff. in longitude = 122˚36’15” + 73˚57’30”

Diff. in longitude = 196˚33’45”

Note: 15˚ = 1 hr.

196˚ 33’ 45” = 196.5675˚
196.5625
= 13.1041667 ℎ𝑟𝑠.
15˚
0.10441667(60) = 6.25 min.
0.25(60) = 15 sec.
13h 06m 15sec
Time measure = 13h 06m 15s
Time in Cebu = 2h 30m + 13h 06m 15s
Time in Cebu = 15h 36m 15s
Time in Cebu = 3:36:15 PM
26. PROBLEM
If a medium is inoculated with a bacterial culture that contains 1,000 cells per
milliliter, how many generations will pass by the time the culture has grown to a
population of 1 million cells per milliliter? Hint: B = b • 2n

Solution:
B = b • 2n
log B = log (b • 2n)
log B = log b + n log 2
log B – log b = n log 2

log B - log b
n=
log 2
log Bb
n=
log 2

n=
log ( 1,000,000
1000 )
log 2
n = 9.96 say 10 generations
27. PROBLEM
A married civil engineer with two young children was killed on a jobsite
when a crane load shifted and fell. Punitive damages will be assessed if
and when negligence by a contractor’s employee is established.
Compensation to the family for loss of income will be made using an
interest rate of 6%, even if negligence is not proven. The engineer’s salary
at death was $45000. If the salary was expected to increase $1000 per
year in constant-value dollars, what is the present worth of the family’s lost
income? The engineer was 35 and retirement at 65 is to be assumed.

Solution: 0 1 2 3 4 5 29 30
P/A, 6%, 30 = 13.765
P/G, 6%, 30 = 142.36
A1 A1 A1 A1 A1 A1 A1
n = 65 – 35 = 30 P1
A1 ⎡⎣(1 + i)n - 1⎤⎦
P1 =
(1 + i)n i
4900
4800
A1 ⎡⎣(1.06)30 - 1⎤⎦ 4700
4600
P1 = 4500
(1.06)30 (0.06)
P1
= 13.765 (P/A, 6%, 30) 0 1 2 3 4 5 6 7 29 30
A1
P1 = 45000(13.365)
4900
4800
P1 = $619425 4700
4600
4500
P2
= 142.36
G 30
G = 1000
P2
= 142.36
1000 A2 A2 A2 A2 A2 A2 A2 A2 A2
P2 = 142360
Present worth of family’s lost icome: 0 1 2 3 4 5 6 7 29 30
P = 619425 + 142360 = $761,785
28. PROBLEM
The community of Upper Snowshoe has expanded its winter tourism very rapidly.
Three years ago, they built a new 10,000 kW power plant for $4.5 M. The local
construction cost index was 135 at that time and it has risen to 157 now. In
current dollars, what is the estimated cost of a 16,000 kW power plant?
Hint: 𝐶t = 𝐶u (𝑆t /𝑆u )* use capacity coefficient n = 0.88

Solution:
𝐶t = 𝑒𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑓𝑎𝑐𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑠𝑖𝑧𝑒 𝑆t
𝐶u = 𝑘𝑛𝑜𝑤𝑛 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑓𝑎𝑐𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝑠𝑖𝑧𝑒 𝑆u
n = capacity coefficient usually < 1.0
𝑆t = 16000 𝑘𝑊
𝑆u = 10000 𝑘𝑊

𝐶u 157
=
4.5 135
𝐶u = 5.23 𝑀
𝐶t = 𝐶u (𝑆t /𝑆u )*
16000 n.••
𝐶t = 𝐶u • €
10000
𝐶t = $7.91 𝑠𝑎𝑦 $8 𝑀 (estimated cost of 16000 kW)
29. PROBLEM
An accountant prepares tax returns for individuals and for small businesses. On average, each individual
return requires 3 hours of her time and 1 hour of computer time. Each business return requires 4 hours of
her time and 2 hours of computer time. Because of other business considerations, her time is limited to
240 hours, and the computer time is limited to 100 hours. If she earns a profit of $80 on each individual
return and a profit of $150 on each business return, how many returns of each type should she prepare to
maximize her profit?

Solution:
Let x = the number of individual returns to be completed
y = the number of business returns to be completed
y
P = 80x + 150y

⎧ x ≥0
⎪
⎪ y≥0
⎨ 3x + 4y = 240
⎪ 3x + 4y ≤ 240
x + 2y = 100
⎪
⎩ x + 2y ≤ 100
60
(0, 50)
(40, 30)
100
To find the feasibility region, we graph R
each of the constraints to find region R, as x
in the figure. The four corner points of this (0, 0) (80, 0)
region have coordinates of (0, 0), (80, 0),
(40, 30), and (0, 50).

To find the maximum profit, we substitute the coordinates of each corner point into the objective function
P = 80x + 150y.

Point P = 80x + 150y

(0, 0) P = 80(0) + 150(0) = 0
(80, 0) P = 80(80) + 150(0) = 6,400
(40, 30) P = 80(40) + 150(30) = 7,700
(0, 50) P = 80(0) + 150(50) = 7,500

From the table, we can see that the accountant will earn a maximum profit of $7,700 if she prepares 40
individual returns and 30 business returns.
30. PROBLEM
A physicist finds that an unknown radioactive substance registers 2000 counts per minute
on a Geiger counter. Ten days later the substance registers 1500 counts per minute. Using
calculus, it can be shown that after “t” days the amount of radio active material, and hence
the number of counts per minute N(t) is directly proportional to ect for some constant c.
Determine the halflife of the substance.

Solution:
N(t) = K e ct
when t = 0 N(0) = 2000
2000 = K e
K = 2000
ct
N(t) = K e
1500 = (2000)e c(10)
150
e10c =
200
⎛ 3⎞
100 c In c = In ⎜ ⎟
⎝ 4⎠
3
In
c= 4
10
1 3
c = In
10 4
c = - 0.02877
Since the halflife corresponds to the time at w/c
N(t) = 1000
1000 = 2000 ect
0.5 = e- 0.02877t
In (0.5) = - 0.02877t In e
- 0.693147 = - 0.02877t
t = 24 days