A trade can look profitable until a fee, percentage or unit is entered incorrectly. Algebra lets you calculate the net result and find the trade size at which profit reaches zero. This lesson teaches arithmetic, equations and functions through those tasks. You will use the same steps in compounding and portfolio calculations.
Learning objectives. By the end of this note you should be able to:
- apply operation precedence and manipulate fractions, powers and percentages;
- solve linear and quadratic equations while checking the result;
- identify a function's domain, range, input and output;
- evaluate, compose and rearrange simple functions;
- translate a short financial statement into an equation.
In this lesson
- Numbers, units and algebraic expressions
- Equations preserve equality
- Functions make dependencies explicit
- A compact readiness checklist
- Whole shares and the profit threshold
The full lesson, with worked examples and exercise solutions, is for members.
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