UTSC

MATA32H3
Final EXAM
STUDY GUIDE
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University of Toronto
Scarborough

MATA32H3
Calculus for Management I

Fall 2017
Term Test 1

Exam Guide

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Compound Interest

Compound Interest

Deals with money, time and interest

1 key equation:

� = �(1 + �)!

P  Principle
• Money invested now
r  Periodic interest rate
• Interest paid per compounding period
• Stated in percentage or annual rate
o NOTE: Must convert percentage into a decimal
n  Number of compounding periods
• Counts number of times interest is paid on investment

S  Compound Amount
• Amount of money we have at the end

Interest is paid exactly at the end of compounding periods

• Only at the end of compounds

Compounding periods n 
P$
Start End
Period of  time
FixedKhl

**For one compound period, the principle (P) plus the interest on that

1st Compound  � 1 + Pr =  � (1 + �)

(Principle + Interest on Principle) 
nd
2 Compound  �  1 + � +  �  1 + � ∙ � = �  1 + � 1 + � = � (1 + �)!
3rd Compound  � (1 + �)! +  �  1 + � ∙   � =  �  1 + � ! ∙ 1 + � = � (1 + �)!
4th Compound  � (1 + �)!

NOTE: IN APPLICATIONS
• We often have APR ‘a’ (Annual Percentage Rate) and frequency ‘k’ of
compounding; and
o How often interest is paid in a year
• A time ‘t’ period

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Legend:
a  APR for period as follows
k  Compounding frequency per year (annually)
t  Number of years for a particular period

We have that…
!
= r and � = � ∙ �
!

Thus,
�
� = � (1 +   )!∙!
�

Example 1: Consider the following “investment scheme” invest $10,000 at 3.05% APR
compounding monthly for a period of 5 years.

a) Find compound amount

!.!"!# !" X 60 $11,645.17

� = 10,000  1 +
!" $10,000
≈ 11, 645.17
5 years

b) Periodic rate (interest at the end of each month)

�
�=
�
0.0305
=
12
≈ 0.002542 (0.2542%)

c) Compound Interest
Difference between beginning amount and end amount
�−�
≈ 1,645.17

Return due to interest

1645.17
= ∙ 100
10000

≈ 16.4517%
(Over 5 years accumulated)

d) How long does it take to earn $15,000

** Express terms in units of compounding (i.e. from this example, months)**

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We solve for the following the equation

!.!"!# !"∙!
15 = 10  1 +
!" ln � ! =  �  ∙ ln � 
!.!"!# !"∙!
1.5 = (1 + )  
!"

0.0305 !"∙! ln(� + �) ≠   ln � + ln � 

ln 1.5 =   ln 1+
12
!.!"!#
ln 1.5 = 12�  ∙ ln 1 + log � =   log!" � 
!"
!" !.!
∴ � =  !.!"!#
!"∙!" !!
!"
ln � =   log ! � 
≈ 13.31 ����� 
0.31
= 3.72 ����ℎ� (����� �� �� 4 ����ℎ�)
12

Therefore, it takes 13 years and 4 month or 160 months

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Effective Rate Concept

Effective Rate:

Consider one year and with an APR of ‘r’ compounding ‘n’ times for that year.
Simple Interest = 1 compound at the end of the year.

Compound
P  principle
S
Compound
Simple (Effective Rate ‘Re’_) Amount

Effective rate = simple interest

Should expect the effective rate to be larger than the APR
• No intermediate compounding
Simple = compounding once at the end of the year

Equation:

�
�� = (1 + )! − 1
�
r  APR
• Not ‘a’
n  compound periods
• When n>1, then you are getting interest on your interest (compounding)
• If n = 1, the effective rate is the APR because ‘r’ is simple when n=1

Example 1:

In applications of effective rate it “comparing investments”

NOTE:

The more you compound the more you make on investments

Scheme A: 2.95% APR, semi-annually The more profitable one is the

Scheme B: 2.93% APR, bi-weekly one with the higher and better
Which is more profitable? effective rate

Answer:

Find the effective rate (Re) for both schemes, then take the higher and better one.
(A is slightly higher and better)

A  n=2
B  n=26

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Present and Future Value

FV  Future Value These are about

PV  Present Value perspective

Start End
Future Value

Present/Past Value
End Start

Future Value:

If P = principle (now), then…

�
�� = � (1 + )!"
�

Present Value:

If S = amount (now), then…

�
�� = � (1 + )!!"
�

Summary

FV is the Future Value of an investment of ‘P’ now

PV is the present/past value of an amount ‘S’ now
• Amount invested to meet future investments

Can combine PV and FV in one equation

�
�� = �� (1 + )!"
�
�
�� = �� (1 + )!!"
�

Example 1:
In 5 years we need $35,000 in an account. Interest is weekly at 4.3% APR.

Solution:

(In ‘000’s)
0.043 !!"∙!
�� = 35 (1 + )
52
!!"#
0.043
= 35  1 +
52
≈ 28,231.46

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Equations of Value

We have a “long period of time” throughout which we have interest, debt and payment.
Debt and payments are two types of simple financial transactions

An Equation of Value is an equation that describes interest, debt and payments and
allows us to calculate.

3 Steps:
1. Create a money-time diagram
2. Build an equation
3. Solve the equation

Example 1: We have a debt of $32,000 in 6 years. Pay $10,000 now, the balance at the
end of the 6 years. Interest is 3% APR, quarterly. Calculate the amounts of the balance
payment.

Solution: First, we make a money-time diagram.

$10,000 $32,000
1 6

Now X Latest ‘x’ can be

made

Let ‘x’ be the amount of the balanced payment

Main Concept:
At all times, the value of all payments must equal value of all debts.
• Selecting a time is called “calibrating”

At time 6 (end of 6 years), is $32,000.

What is the value of our payments (x)
Value = with interest

!.!" !∙!
� + 10,000 (1 + ) = 32,000 Solve for ‘x’
!
≈ 20,035.86

Reducing what you were obligated to pay before

** Assume there are 365 days in a year **

Calibrate to “now”:

0.03 !!" 0.03 !!" Another Equation of Value

32,000 (1 + ) = 10,000 + � (1 + )
4 4

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Example 2: More complicated… 2 debts and 3 payments

2 debts  $2000 in 3 years
• $3000 in 55 months
3 payments  $1000 now
• 2nd at the end of 20 months
• 3rd (1/2 of 2nd) at the end of 4 years
Interest is 6.6% APR, monthly. Find 2nd and 3rd payment amounts

Solution:
Cash-Time Diagram:
(All units are in ‘000s)

20 months 55 months

0
5 years
1 2 3 4 3
1 x 2 �
2

Let ‘x’ be the amount of the 2nd payment in thousands. Therefore the 3rd payment is x/2.

Let’s calibrate for time now (0):

!
�= k=12
!
0.066
=
12
= 0.0055

Equation of Value:

!!" ! !!" !!" !!!

1 + � 1 + 0.0055 + 1 + 0.0055 = 2  1 + 0.0055 + 3  1 + 0.0055
!

Value of payments now Value of debt now

� ≈  2.23397
�
≈ 1.11699
2

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Interest Compounded Continuously & Net Present Value

Interest Compounded Continuously

Fix a period of time ‘t’ years and an APR, r % and a given principle (P). If the frequency
of compounding annually (k value) increases without bound, there is actually a maximum
amount at the end of time.

Maximum amount is Interest compounds continuously NOTE: � ≈ 2.78128 …

� = �� !"

Time K
Annual 1
Monthly 12
Weekly 52
Daily 365
Hourly 8,760
Second 31,536,000

Continuously = always compounding at all times

Continuously compounding is the opposite of simple interest. Simple interest is

compounding with interest at the end of every year while compounding continuously is
compounding with interest at every microsecond.

Equation:

� = �� !"

P Principal
r Nominal rate (also known as APR)
t  Number of years
S  Final amount
e  2.78128

If we have a given principal (P), an APR (r) and a given time (t), the least amount we’d
have at the end of ‘t’ years is the simple interest

� = �(1+�)!

The maximum amount we’d get at the end of ‘t’ years is continuously compounded

� = �� !"
Example 1: Find the present value (PV) of $100,000 at 4.2% APR at 4 years when
interest compounds continuously with interest.

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Solution: (In unit’s of 000’s)

�� = 100� ! !.!" !

≈ 84,535

Therefore, we can say that approximately $84,535 is the least amount we need to invest
at 4.2% APR for 4 years for it to grow it $100,000

• When compounding continuously = the most amount of interest

• The more you compound the less you would have to pay than with less
compounding

Net Present Value (NPV)

Idea: Suppose you invest ‘P’ in a “company” that “guarantees” payments back to you on
a “schedule” (Cash flows) assuming there is interest too.

Formula:

��� = �� �� �� ��������) −  �

When…
NPV > 0  Profitable Investment
NPV < 0  Lost money in investment
NPV = 0  Neutral (break even)

Example 1: Invest $35M. Interest is 6%, semi-annually.

Years Payments
2 13
5 19
Cash Flows
8 24

^ Don’t get all of these payments at once, only at the end of year 2, 5 and 8. MUST
CONSIDER INTEREST

Solution:

!! !!" !!"
��� = 13 1.03 + 19  1.03 + 24 1.03 − 35
≈ 5.6441 > 0

Therefore, the investment is profitable

**The threshold for being profitable is as soon as it goes slightly about the amount of ‘P’

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Try yourself…

Years Payments
2 13
5 19
Cash Flows
8 F

What is the least amount that ‘F’ has to be in order to be considered profitable?

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Annuities & Limits and Continuity

Fixed payment over a fixed period of time at a fixed interval

Annuity is a sequence of payments of a fixed amount, r, paid at “regular” points in time.

There is constant interest “for all time”.

0
R R
… R R

n  Number of payments of fixed amounts of ‘R’

R  Periodic interest rate

Ordinary Annuity  payments are at the end of payment periods.

Annuities are ordinary unless stated otherwise

Annuity Due  payments are made at the beginning of payment periods

(i.e. rent)

NOTE: Interest paid is “timed” with the payment periods

Future Value of an annuity = FV

(�� �� ��� � ��������)

Present Value of an annuity = PV

(�� �� ��� � ��������)

Equation of a FUTURE VALUE ORDINARY ANNUITY

1+� !−1
�� = � [ ]
�

Equation of a PRESENT VALUE ORDINARY ANNUITY

1 − 1 + � !!
�� = � [ ]
�

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Example 1: Present Value (Ordinary Annuity)

4 Payments, 1 payment of $100 at the end of the year for 4 years at 9% APR, annually.
APR is equal to the number of payment periods

1 − 1.09 !!
�� = 100  Year One: (��)(1.09) ≈ 353.13 − 100 = 253.13
0.09 Year Two: (253.13)(1.09) ≈ 275.91 − 100 = 175.91
≈ 323.97 Year Three: (175.91)(1.09) ≈ 191.74 − 100 = 91.74 
Year Four: (91.74)(1.09) ≈ 100 − 100 = 0

PV = present value of $ in account for payments can be made (least value) with interest
considered.

Example 2: How to approach annuity due using ordinary annuity concepts

An annuity due of 5 payments (n=5), r = periodic rate

Present Value:

1− 1+� !!
�� = �  +�
�
!! !!! !!
= �  + �
!

Ordinary for last 4

Future Value:
1+� !−1
�� = � 1+�
�
1 + � !! − 1
=� (1 + �)
�

** Take sum of ordinary annuity and add one more term (1+r)

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Limit and Continuity

Calculus is applied in economics, finance and management science (operations

research [OR]). Calculus has 2 main parts: (1) differential and (2) integral. Foundation =
LIMITS

Main definition  LIMIT CONCEPT

Let y= f(x) be a function and let ‘a’ be a real number (a is a real number). We write the
following notation lim!→! � � = �.

To mean the following 2 things:

1. L is a real number (I.e. L is a number called the “value of the limit”)

2. The function values (i.e. “output” of the function)
F(x) gets closer to L and stays close as the input values ‘x’ approaches ‘a’.
However, ‘x’ will never reach ‘a’.

When we say lim!→! � � = �, also means the “limit exists” ‘L’ is a number.
If lim!→! � � = ���� ��� ����� there is no value of ‘L’

! ! !!
Example 1: let � � =   Rational function = polynomial/polynomial
!!!

Domain � = ��ℝ �  ≠   −3} �� (−∞, −3)   ∪

(−3, ∞)
U  union symbol (this or this)

0/0 = undefined

!!! !!!
for � ≠   −3, � � =   = � + 3  �� [ � + 3 ≠ 0]
!!!
lim � � =   lim � − 3 = −6
!→ !! !→!!

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Continuing With Limits

Example 1: Let � � =   −2� ! + 4� − 1

Polynomial degree = 3
Cubic Function

lim!→! � � =   lim!→! −2� ! + 4� − 1

lim �(�) → ����� ��������
= lim −2� ! + lim 4� − lim 1 !→!
!→! !→! !→! lim (−2� !+ 4� − 1) → ������������ ��������
! !→!
= −2 [lim � ] + 4 [lim �] − 1 !
!→! !→! !lim �! → ��� ��������� �����
! !→!
= −2 lim � + 28 − 1
!→!
!
= −2 7 + 28 − 1
= −659

Thus, as ‘x’ gets closer & closer to 7, but x ≠ 7, the function values (outputs) p(x) gets
closer & closer to -659

NOTE: That � 7 =   −659 [���������� ��������]

If y=q(x)  any polynomial and c is a real number

Then lim!→! � � = �(�) thus, the limit exists and is obtained by substituting
(evaluating)
CANNOT ALWAYS EVALUATE FOR ALL FUNCTIONS
Works for properties of continuity

Limits, Left & Right

Let y=f(x) be a MATA32 function and let c be a real number

** MATA32 function = functions we study in this course

Left:
We write lim!→!! � � =   �! to mean that…
1. L1 is a real number
2. The function values f(x) approaches ‘L1’ as ‘x’ approaches ‘c’ where x<c

Right:
We write lim!→!! �(�) =   �! to mean that…
1. L2 is a real number
2. The function values f(x) approaches ‘L2’ as ‘x’ approaches ‘c’ where x>c

CONNECTION between Limit, Left & Right

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Let y=g(x) be a MATA32 function and let c be a real number. We then have a “Limit
Principle”

lim!→! �(�) = � <=> (�� ��� ���� ��)

1. lim!→!! � � =   �!
2. lim!→!! �(�) =   �!
3. lim!→!! �(�) =   lim!→!! �(�)      ∴ �! = �!

We often use the principle above (Limit Principle) when the given function [g(x)] is
defined and has two or more formulas based on cases

Example 1: Let � � =   �     �� � > 1

−� + 1  �� � < 1
Breaking point is at 1 (^)
lim!→! �(�) = ? (Must use one sided limits)

lim �(�) =   lim − � + 1 = 0 Values are not equal

!→!! !→!
Therefore, property 3 fails
Therefore THE LIMIT DOES NOT EXIST
lim �(�) =   lim �=1
!→!! !→!!

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The Limit Properties, Limits at ±∞ & Continuity and Continuous

Functions

The limit properties are a list of “tools” for finding many limits but not all.

Key problem: find the limit lim!→! �(�) where ‘f’ is a MATA32 function and ‘a’ is a real
number

Sometimes recognizing the limit properties are not always immediate

Of special importance are limits of the form 0/0. All derivatives contain the form 0/0

! ! !!
Example 1: lim!→! �(�) = � ! − 1 
! ! !!
Polynomials
� − 1 �! + � + 1 �(�) = � ! − 1 
= lim
!→! �−1 �+1 lim �(�) = 0 
!→!
�! + � + 1  lim �(�) = 0
= lim !→!
!→! �+1
!"#!→! ! ! !!!!
= Sub x=1
!"#!→! !!!
3
= 
2

Example 2: lim!→!!
!! ! Finding the limits as is will result in
!!! the form 0/0.
= lim x-2 [2-(-x)/x+2]
=lim x-2 [2+x/x+2]
= ! !
=1 !   !" !!!
Absolute value |x|
!!   !" !!!

Limits at ±∞

These kinds of limits also involve “horizontal Asymptotes”

B A

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!! ! !!!!
Example 1: lim!→!
!! ! !!"""!!!"!
5� !
= lim
!→! 3� !
5
= 
3

OR

! !
! ! !! ! !
! !
= lim!→! !""" !"!
! ! !! ! !
! !
1 2
lim 5 + lim+ lim !
� �
= !→! !→! !→!
Since limit of 1/x, 2/x2,
5000 10!
lim 3 + lim + lim 5000/x and 109/x2 all go off
!→! !→! � !→! � !
5 to 0.
= 
3

Example 2: lim �! + � − �
!→!
�! + � − � �! + � + �
= lim  ∙ 
!→! 1 �! + � + �
�! + � − �!
= lim
!→! � ! + � + �
!
= lim
!→! ! !! !!
!
!
1
= lim
!→! 1 +1
1
=
2

Continuity and Continuous Functions

Main idea: a MATA32 function y=f(x) is “continuous at a number ‘c’” means that the
graph of our ‘f’ has NO: holes, gaps, jumps, etc.

Careful definition:
Let y=f(x) be a MATA32 function and let ‘c’ be a real number. We say that ‘f’ is
continoust at ‘c’ if and only if lim � � = �(�)
!→!

The continuity check is used to see if a function is continuous at ‘c’.

���� � = � � < = > 1. ���� � = � ���� �����  ∴ �� = ��

�→� �→�
2. � � ���� ����� ������ ��� ������

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3. ���� � = � �  ���� �� ���� 
�→�

Example 1: � � =     �     �� � > 0 

 2  �� � = 0 
−� − 1   �� � <)

=   lim � � = lim (−x − 1) = −1
!→!! !→!!
= lim � � =   lim � =0
!→!! !→!!
∴ lim  ���� ��� ����� �����, �1  ≠ �2 ��� �������� #1 �����
!→!

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Derivatives

Main definition of a derivative  Let y= f(x) be a MATA32 function.

The derivative of ‘f’ is a function (written as �′)

�′ is defined as a special limit

� �+ℎ −� �
� ! � =   lim
!→! ℎ

h  limit variable
x  function variable

!
^Definition forms (undefined)
!

“Differentiate”  find the derivative of a given function

Given a function, y=f(x), the derivative is defined as follows

� �+ℎ −� �
� ! � =   lim
!→! ℎ
** We use the definition (^) only when we are asked to

We calculate much faster using the derivative rule

Notation: Let y=f(x) be a MATA32 function

!" !
Derivative: � ! � , � ! , , � � , �! �
!" !"

Derivative Rule:
1. The Constant Rule:
�
� =  0, �ℎ��� � �� � ���� ������ ��� � �� � ���� ������
��
A constant has a slope of 0

2. Power Rule:
� = � � = � ! , �ℎ��� � �� � ���� ������ ��� �� �ℎ� �������� �����
Then � ! = �(� !!! )
!
Example 1: � = � = � !
1 !!!
�! = �!
2
1 !
� ! = (� !! )
2
1 1
�! = × !
2
� !!
1
�! =
2 �

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!
Example 2: � � = = � !!
!
�� !!
1
=   −1� =   − !
�� �

3. Constant Factor Rule:

Suppose: � � = �ℎ �
∴ � ! � = �ℎ � !
= � ℎ! �

!
Example #1: �� � = 5 � = 5� !
1 !
�ℎ�� � ! = 5  � !!
2
5 1
= × !
2
�!
5
�! =
2 �

4. Sum-Difference Rule:
• ‘f’ and ‘g’ are functions
� � + � � ! = � ! � + �! �
!
� � −� � = � ! � − �! �

5. Product Rule:
• ‘f’ and ‘g’ are functions
� � � � = � ! � � � + � � �! �
��ℎ ! = � ! �ℎ + ��! ℎ + ��ℎ′

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Examples from 11.1-2 & 11.4-5 & Derivatives in Economics and

Management

! !!! !! !
1. Definition of derivative  lim!→! [ ]
!
In 11.1, there is a different way to write �′(�).

� � −� �
� ! � = lim
!→! �−�
The two different �′(�) formulas compute the same thing they get the derivative.

Why doe these give the same result?

� �+ℎ −� �
lim
!→! ℎ
Introduce a new variable ‘t’ where � = � − ℎ 
∴ ℎ = � − � 

If we use ‘t’ and ‘h’ as “limit variables” and ‘x’ is “fixed”, then h0 if and only if
tx

� �+ℎ −� � � � −� �
∴ lim =   lim
!→! ℎ !→! �−�
! ! !! !
= lim!→! !!!

To know when to use it depends on the actual form of f(x) and the context of the
question. Whether it suggests one formula over the other.

! !
!
! !
Example 1: Find lim!→!
!!!

Solution: Is a “0/0 form”. The limit can actually be viewed as the 1st principle’s
!
! ! !
definition of derivative of some function! Let � � = = � !! , � 4 = =
! ! !
1 1
−
� 2
∴   lim = �! 4
!→! � − 4

1 ! 1 ! 1
� ! � =   − � !!     ∴ � ! 4 = − 4 !
! =−
2 2 16

Example 2: Let � = � ! + 1 get y’

!
Solution: “MUST” use the chain rule [� � � = �′(� � )×�′(�)]
!
� = �! + 1 !

“Inner Function”  � � = � ! + 1 

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!
“Outer Function”  ℎ � = � !

∴�=ℎ � � =� �

Chain rule says  � ! � = ℎ! � � ×�! �

1 !
= � � !! × 2�
2
1 ! !
= � + 1 !! 2�
2
!
!
= �! + 1 ! �
�
�! � =
�! + 1
!
NOTE: That we can write our answer as � ! =
!

11.3 – Derivatives in Economics and Management

The “Marginal” concept = Derivative

Let � = � � be a MATA32 function. The derivative is

� �+ℎ −� �
� ! � = lim  ≈ � � + 1 − � � �� ��� ℎ = 1
!→! ℎ
∴ �! � ≈ � � + 1 − � �

Should not expect them to be equal

I.e. The derivative is approx. ≈ to the difference [f(x+1)-f(x)]

Apply as follows:
Let ‘q’ be quantity and suppose � ! = � � = ����� ���� ��������
To make, market and sell, ‘q’ units it costs and c=f(q)

q-axis
0 q q+1

What is the cost of (q+1)st unit?

Answer is f(q+1) – f(q) … the Marginal cost [q+1] item

We have that � ! � = � � + 1 − � �
Therefore, the derivative � ! � ≈ �ℎ� ���� �� ���� # (� + 1)

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Example 1: Let � = � ! + 38� + 1500 be a cost function where ‘q’ is quantity

� = �(�)

!"
Marginal cost function is � ! = � ! � = = 2� + 38
!"
!
We’ll see an example  � � ≈ � � + 1 − � �

Let q=1250

� ! � = � ! 1250 = 2538 

� � + � + � � ≈ �′(�)

� 1251 − � 1250 = 2539

[Is not the limit definition; therefore is not the same answer as the limit]

The exact cost to produce unit # 1251 is 2539 and this is well approximated by c’(1250)

Example 2: See page 526 #72

Involve marginal cost and average cost and notation

Let � = �(�) be a cost function where ‘q’ = quantity

!!
Assume the following: |� = �0 = 0 for some “special quantity”, ‘q’
!"
! !
Average cost function = � =
!

Prove the following:

!!
|� = �0 = � � ∘
!"

! !
Solution: � =
!
��
� � � � � −� �
��
� = =
�� �� � �!
Sub in � = � ∘

��
|� = � ∘ (� ∘) − �(� ∘)
��
=0
�∘ !
��
∴   |� = � ∘ � ∘ − � � ∘ = 0
��

A little algebra shows that…

!! !(!∘)
|� = � ∘  =
!" !∘  

Marginal Cost = Average Cost

!!
∴  |� = � ∘ = �(� ∘ )
!"

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Derivatives of Logarithms and Exponential Functions

Facts:
! !
1. ln � =
!" !
!
2. �! =   � !
!"

Example 1: Find the equation of the tangent line to the graph of y=ln(x) at x=3

Solution: Point of tangency is (x,y) = (3, ln(3))

NOTE: We leave ln(3) as is … no calculator use, unless asked to approximate

! ! !
Slope  � = ln � �ℎ�� � = 3 = =
!" ! !

Point – slope form  � − � ∘= � � − � ∘

1
� − ln 3 = (� − 3)
3

Slope – Intercept form  � = �� + � 

1
� = � − 1 + ln 3
3
1
� = � + ln 3 − 1
3

Example 2: Differentiate …

(1) � = �� !!

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� ! = 1� !! + �� !! −1
=   � !! 1 − � �������� ����

!
(2) � � = �
!! ! !! Let � = � !  
1 ��
��� � = 3� ! + = �!
� ��
�� �� ��
= ∙
�� �� ��
1
= � ! (6� − ! )
�
!
!!
(3) � � = ln [( )! ]
! ! !!

To find f’(x), it is easier to simplify first

ln �! = � ln �
�
ln = ln � − ln �
�

1 �!
�! � = ln !
3 � +2
1
= (ln � ! − ln � ! + 2
3
1
= [2 ln � − ln � ! + 2
3
1 2 2�
�! � = − !
3 � � +2

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Elasticity of Demand (EOD)

Let ‘q’ represent quantity (I.e. demand)

We assume p=f(q) as a demand function. Where p = unit price (i.e. price/unit)

Elasticity of Demand is a mathematical function that shows how percentage changes

in ‘p’ and ‘q’ happen when the demand function holds.

Mathematical assumptions: ‘p’ and ‘q’ are as above and p=f(q) is a demand function
where ‘f’ is a differentiable and decreasing.

When ‘q’ is a special amount,

p = special amount when on
the curve

We always have � ≥ 0 and sometimes q > 0

Differentiability  Continuity

Therefore, ‘f’ is also continuous wherever it’s defined

Definition of Elasticity of Demand function is..

�
� � �
�� � � �
�= = ! =
�� � � � �! �
� = �������� ��� (���)

A.K.A. point of elasticity of demand

NOTE: That η is actually a function of ‘q’

We see that η<0 for q> 0 as follows: f(q) > 0 and q<0 and f’(x)<0

Here is an “approximation relationship” seeing elasticity of demand

Given a specific point, (q0,p0), we have that..

%�ℎ���� �� � �� � ∘
�≈
% �ℎ���� �� � �� � ∘

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 ∴ % �ℎ���� �� �� � �� � ∘ ×� ≈ % �ℎ���� �� � �� � ∘
� ∘= �(� ∘)

There are “3 Types” of elasticity:

1. If |η|>1  we have an “elastic demand”
2. If |η|=1  we have a “unit elasticity”

% �ℎ���� �� � �� � ∘ ≈ % �ℎ���� �� � �� � ∘  ∵ � = 1

3. If |η| <1  we have an “inelastic demand”

We calculate |η| like this: given q0, we find η(q0) <0

Thus we actually find |η(q0)|

Implicit Differentiation

Main Idea:
Assume we have 2 variables ‘x’ and ‘y’ and they appear in a given equation. We assume
the given equation implicitly defines ‘y’ as some function of ‘x’/
Implicit differentiation helps us find the derivative without knowing ‘y’

Example #1: Assume the equation xy+x2 = 2+y

Defines ‘y’ implicitly as some function of ‘x’ (i.e. y =f(x) for some function of ‘f’ that we
may nor may not be able to actually find)

Use implicit differentiation to find the derivative of ‘y’ without respect to ‘x’

Find dy/dx. It’s helpful to write dy/dx=y’

Step 1: d/dx of both sides of the equation

� �
�� + � ! = 2+�
�� ��

Step 2: Perform differentiation while assuming ‘y’ is a function of ‘x’

! !
�� + � ! = 2+�
!" !" ‘x’ and ‘y’ is a product of g(x)-x&y
� � y=n(x)
�� + �! = �!
�� �� �
�� (��) = � + ��′
�+ � + 2� = �′ ��
��

Step 3: Solve for y’

∴ � + �� ! + 2� = � !
�� ! − � ! = −2� − � 
� ! � − 1 = −2� − � 
−2� − � 2� + � ��
∴ �! = = = → ��� ������� ����������
�−1 1−� ��

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NOTE: We still do not know y=f(x) yet we have y’ depending on both ‘x’ and ‘y’

Example #2: Assume the equation x3+y3=6xy defines ‘y’ implicitly as a function of ‘x’.
Thus, y=f(x) for some function ‘f’

a) Find y’ (i.e. dy/dx)

b) Find the point(s) on the curve given by the equation where the tangent line is
horizontal

Solution A:
� ! + � ! ! = 6�� ! Differentiate both sides
� ! ! + � ! ! = 6 �� ! using (‘) with respect to
3� ! + 3� ! � ! =  6 � + �� ! ‘x’
Reminder:
� ! + � ! � ! =  2� + 2�� !
� ! � ! − 2�� ! = 2� − � !   y=f(x) for some function that
� ! � ! − 2� = 2� − � ! we do not know
2� − � ! y’ is a function of
∴ �! = ! both ‘x’ and ‘y’
� − 2�

Solution B:
We solve for y’=0 for ‘x’ and ‘y’ y’|y=0,x=0 = undefined
2� − � ! 0 (x,y) = (0,0) makes y’ undefined
= → 2� = � !
� ! − 2� 1

!
!
Answer: 16, 2!
^ Sub in equation and solve for ‘x’

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Logarithmic Differentiation

Logarithmic differentiation uses properties of logarithms to simplify first before

differentiation.

Use mostly with complicated products, quotients, or “generalized exponential functions”

Generalized exponential functions  � = �(�)!(!) where a(x) and b(x) are functions

!
Example 1: Let � = � find y’ (=dy/dx) Logarithm Properties:
ln(�! ) = � ∙ ln(�)
!
Solution: ln � = ln � ln(��) = ln(�) + ln(�)
�
ln ! ! = ln(�) − ln(�)
!
ln � = � ! ∙ ln � �
!
! !
∙ ln � = � ! ∙ ln �
!" !" �
!! ! !
! !
! ln(�)
= � ! ∙ ln � + � ∙! ��
! ! !
� ��
�! = �
ln �
+
1 = ! ln(�)! ∙
2 � �  �� ��
ln � 1 1 !
∴ �! = � ! + = ∙�
2 � �  �
= �!
�
NOTE: We do NOT do the following:
� ! = � ∙ � !!!    This derivative rule does not apply here

! !/! ! ! !!
Example 2: Find where � =
!!!! !

Solution: Using Logarithm properties 

3 1
ln � = ln � + ln � ! + 1 − 5 ln 3� + 2
4 2
�! 3 2� 3
= + ! −5
� 4� 2� + 1 3� + 2
3 � 15
= + −
4� � ! + 1 3� + 2
!
!
�! �! + 1 3 � 15
∴ � =  !
+ ! −
3� + 2 4� � + 1 3� + 2

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!(!)
Example 3: � � = � �  where a(t) and b(t) are functions
Solve for u’(t) (=du/dt)

Solution:
ln � � = ln � � ! !
ln � � = � � ∙ ln � �
� �
ln � � = � � ∙ ln � �
�� ��
�! � �! �
= � ! � ∙ ln � � + � � ∙
� � � �
�! �
∴ �! � = � � !(!)
� ! � ∙ ln � � +� � ∙
� �

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Newton’s Method, Derivation of Newton Method and Higher Order

Derivatives

Newton’s Method:

Newton’s Method is a technique for approximating a root or a zero of a function (i.e. ‘c’)

The real number ‘c’ is a root/zero of

our function.
- Means that f( c)= 0

Finding ‘c’ is often important, but often impossible exactly

Newton Method Formula:

� �!
�!!! = �! −
� ! �!
Given a function y=g(x), a root (or zero) of ‘g’ is a real number ‘c’ such that g( c)=0

There is a small issue of verifying that a function actually does have a root.
- We use the Intermediate Value Theorem (IVT)

Assume we have a continuous function y=h(x) and ‘a’ & ‘b’ are real numbers, such that
h(a) and h(b) have opposite signs (+/-). The ‘h’ has a root ‘c’ lying strictly between ‘a’ and
‘b’
- Better to try to get ‘a’ and ‘b’ “close together”

We use IVT to get a “start values ‘x’”, for Newton Method as follows:
- Assume that h(a) and h(b) (two numbers) have opposite signs
- Let x1 (start) = ‘a’ or ‘b’, depending which one, h(a) or h(b), is closer to 0
o If h(a) is closer to 0, use ‘a’ and vice versa
o I.e.
Therefore, h(a) is closer to zero than h(b)
Therefore, we can let the starting value be
X1=a (x1=0=start)

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Example 1: Let � � = 2� ! + � − 1, where ‘f’ is a polynomial and a function

Using IVT to verify ‘f’ has a root

f(0)= -1<0 , f(1)= 2>0

f(0)= negative output

f(1) = positive output

By IVT, ‘f’ has a root ‘c’ is between (0,1)

! !!
�!!! = �! −
! ! !!
2�!! + �! − 1 �(�) = 2� ! + � − 1 
= �! −   �(�� ) = 2�3� + �� − 1 
6�!! + 1
4�!! + 1 � !(�) = 6� ! + 1 
�!!! = ! � ! (�! ) = 6�!! + 1 
6�! + 1

Start: x1= 0

4 0 3 +1
�! =
6 0 2 +1
=1
4 1 !+1 5 Get’s closer
�! = =   ≈ 0.71428571 … and closer to
6 1 !+1 7
5 ! ‘c’
4 +1
�! = 7 ≈ 0.60517 
!
5
6 +1
7
�! ≈ 0.59002

Therefore, we can say that � ≈ 0.59002

Example 2: Sometimes in application of Newton Method is needed, but we have to

“work to get a function”.

Consider two functions: � = � � = � !  ��� � = ℎ � = −� + 3 (can represent the supply

and demand functions)

(r, g( r)) = (r, h( r))

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Verify that by IVT that the graphs of ‘g’ and ‘h’ cross
We seek to “solve” the equation g(x)=h(x) for ‘x’

Consider the difference function: f(x)=g(x) – h(x) [Apply IVT, Newton Method to ‘f’]
Then, (r is a root of) if and only if f( r)=0 and g( r)=h( r)

Derivation of Newton Method Formula

How and Why the Newton Method “works”

Let y=f(x) have a root ‘c’ and therefore f( c)=0

Suppose we have a value �!

Geometric Explanation of how to get �!!!

Point: (�! , � (�! )) 

Tangent Line to: � = �(�) �� (�! , � (�! )) 
Intercept: �!!!

Slope is  � ! �!
Tangent line is  � − � �! = � �! � − �!
! !!
Intercept at 6+y=0  − = � ! �! � − � !
! ! !!
� �!
∴ � =   �! −
� ! �!
Therefore, we let this (^) be �!!!

Higher Order Derivatives

(i.e. 2nd and 3rd derivatives)

Let y=f(x) be a MATA32 function

F’(x) (or y’ or dy/dx) is the first derivative

NOTE: that f’(x) is also a function, so it can be derived

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We have “higher – order” derivatives as follows:

2nd derivatives  f’’(x), y’’ or d2y/dx2 or f(2)(x), y(2)
3rd derivatives  put 3’s everywhere, where there is a 2 indicating the derivative
number
And so on…
Nth derivative  f(n)(x) or y(n) or d(n)y/dx(n)

Example 1: let � !!! = �, find f(100)(0)

� � � !!!  
� ! � = −2� !!!  
� !! � = −2 ! � !!!
� ! � = −2 ! � !!!

The pattern suggests that f(100)(0)= -2100

** When the derivative number (n) is too big, look for a pattern

Example 2: Find all values of the constant λ for which the function � = � !" satisfies the
equation 2� !! = 7� ! + 3� = 0

1. Find 1st and 2nd derivative

� ! = �� !"  ��� � !! = �! � !"

2. Sub in y, y’ and y’’ into the equation and see where this takes us

2 �! � !" = 7 �� !" + 3 � !" = 0 

� !" 2�! + 7� + 3 = 0

Forces 2�! + 7� + 3 = 0

Therefore, we must have that 2�! + 7� + 3 = 0

!
We get � = −3 ��� � = −
!

!
Our functions are � = � !!!  ��� � = � !!!

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Graph Sketching and Optimization

We have two main ideas:

1. Use the tools of calculus to provide a good graph of a given function y=f(x)
2. Apply the ideas of calculus to solving real-world optimization problems (max/min)

NOTE: The 5 number ‘ci’ give 6 open-intervals:

(−∞, �1), (�1, �2), (�3, �4), (�4, �5) ��� (�5, ∞)

ℎ! �1 = ℎ! �2 = ℎ! �4 = 0  �ℎ����������� �� �ℎ� ℎ��������� ��������
ℎ! �3 = ℎ! �5 =  ���������

We call the numbers ‘ci’, i=1-5, critical numbers or values

Critical Numbers

Definition  y=f(x) be a MATA32 function. A real number ‘c’ is a critical number of ‘f’ iff
‘c’ is in the domain of ‘f’ and either:
a) � ! � = 0 ��
b) � ! � = ���������

Thus, to find all critical numbers of ‘f’

1. Find the derivative
2. Take derivative and solve for ‘x’ when f’(x)=0
a. Factor equation
3. Determine if the derivative is undefined

Regarding critical numbers and max/min:

If y=f(x) has a local max/min at a point ‘a’ is a real number then ‘a’ is a critical number of
‘f’
Important Note: The converse statement is false (switching the order)

Intervals of monotonicity:
• Monotonicity  same direction
• (open) intervals
• Increasing part = f(x) is increasing on an open interval
o (a,b) if and only if f’(x)>0 for all ‘x’ (a,b)
• Decreasing part = f(x) is decreasing on an open interval
o (a,b) if and only if f’(x)<0 for all ‘x’ (a,b)

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−∞, �1 �2, �3 = � �  ���������� 

�1, �2 �3, �4 �4, �5  ���  �5, ∞ = � �  ����������

When first derivative changes signs tells us we have a max/min

Good Luck!!

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University of Toronto
Scarborough

MATA32H3
Calculus for Management I

Fall 2017
Final Exam

Exam Guide

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CONTENTS

Exam Guide Covers the Following Topics:

• Deri ati es a d Co a it

• A solute E tre a o a Closed a d Bou ded I ter al

• Horizo tal &Verti al As ptotes

• Applied Opti izatio Pro le s

• I tegratio

• I tegratio Parts

• The Defi ite I tegral

• The Fu da e tal Theore of Cal ulus

• Properties of the Defi ite I tegral

• Appli atio s of I tegral to Area

• Areas Bou ded Bet ee Cur es

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Derivatives and Concavity

1st Derivative Test

Idea: given y=f(x), the 1st derivative is used to determine whether a critical number of a
function is a local max, min, or neither
*** Critical number is 0 or undefined

Let y=f(x) be a function and assume ‘c’ is a critical number of ‘y’. Assume (I) is an open
interval

1. Max: if f’(x) changes signs from + to -, as ‘x’ moves through I, the ‘f’ has a local
max at ‘c’
2. Min: If f’(x) changes sign from + to -, as ‘x’ moves through I, the ‘f’ has a local
min at ‘c’
3. Neither: if f’(x) does not change sign for ‘x’ to the left side of ‘c’ in I, then ‘f’ has
no local max/min at ‘c’

2nd Derivative
Gives information about the bending upwards/downwards of a function
(i.e. concavity (point of inflection)

Concavity Test
Suppose we have a function y=f(x) so the f’’(x) is defined on a given open interval (a,b)
I
1. if f’’(x) > 0 for all x of I, the f(x) is concave up on I
2. If f’’(x) <0 for all x of I, then f(x) is concave down on I

We obtain intervals I, as in the concavity test

1. Find f’’(x)
2. Solve f’(x)=0
3. See if f’’(x) is ever undefined

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Definition: we have/say (c,f( c)) is a point of infection of y=f(x) where concavity changes

2nd Derivative test

Assume y=f(x) is a function such that f’( c)=0 (thus, ‘c’ is a critical number)
1. Min: f’’( c) > 0, then ‘f’ has a local min at ‘c’
2. Max: f’’( c)<0, then ‘f’ has a local max at ‘c’
3. Not helpful: if f’’( c) = 0 or undefined, then the 2nd derivative is not used to give
any info about extrema at ‘c’ max at ‘c’

NOTE: 1st and 2nd derivative can often give information about extrema (max/min)

1st Derivative 2nd Derivative

• Need only f’(x) • Must get f’’(x)
• Need to analyze sign of f’(x) • Only evaluate f’’( c)
• Can always work • Might not be helpful
• Can always be used • Applicability is limited

NOTE: A function may not have any absolute extrema (even if it has a local)

We have to study a special situation where absolute extrema ‘s are guaranteed to exist
and we can find them
13.2  absolute extrema on a closed interval [a,b]

The main theory tool/concept is:

Extreme Value Theorem (EVT)
Assume y=f(x) is a MATA32 function that is continuous for xe[a,b] (‘a’ closed interval)
then ‘f’ has an absolute max and absolute min on [a,b]

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Absolute Extrema on a Closed and Bounded Interval

!
!
Example 1: Discuss the absolute extrema of the function � � = � ! + �ℎ��� � ∈
!
−9, 1

Solution: We are given a closed and bounded interval [-9, 1]

Our function ‘g’ is continuous on [-9, 1] as follows:
! !
! !
� � = �! � + �! � where �! � = � ! = � is continuous on [-9, 1] and �! � = is
!
also continuous

Therefore by EVT, ‘g’ has both an absolute max and min on [-9, 1]

Now we find the absolute extrema using the closed interval method (CIM)

Step #1: Evaluate function at end points

� −9 ≈ 1.327
4
� 1 = ≈ 1.333
3

Step #2: Find all critical points

!
! !
�! � = ∙  � !!   + g’(x) is undefined when x=0,
! !
2 1 1 since � ∈ [−9, 1] → ������ ��
= ∙ !+
3 ! 3
�

Consider g’(x)=0
2 1 1
∙ + = 0 
3 !! 3
�
2
! = −1 
�!
!
� ! =   −2 
� = −8 
∴ � = −8 ∈ −9, 1

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Step #3: Evaluate the function at critical points that are in the interval [-9, 1]
� 0 =0
! −8 4
� −8 = −8 ! + =
3 3

Step #4: Absolute max. is the largest function values from steps 1 and 3

Therefore, absolute max is 4/3 at x=-8 and x=1

Absolute min. is 0 at x=0

*** 1st and 2nd derivative test is not necessary for closed intervals***
- Not interested in local max/min

NOTE: A closed and bounded interval may have to be found from a particular
question/application

!
Example 2: Let � = � � = �� !! > 0

Use “basic properties of ‘f’ and the derivative to produce a good graph of y=f(x)

‘f’ is positive when x=positive

‘f’ is negative when x=negative
�
�(�) = ! ! → 0 �� � →   ±∞
�

!
� ! � = � !! 1 − 2� !
!
� ! � = � �� ��� ���� �� � !! 1 − 2� ! = 0
! !
Since � !! > 0 therefore, 1 − 2� ! = 0 �� ��� ���� �� � = ±
!

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Horizontal &Vertical Asymptotes and Applied Optimization Problems

Horizontal Asymptotes:

Y=k is a horizontal asymptote of y=f(x) and y=g(x) because

lim �(�) = � ���  lim �(�) = �
!→! !→±!

Definition of horizontal asymptote (HA): let y=f(x) be a MATA32 Function

For a real number ‘k’ the (horizontal) line y=k is a horizontal asymptote of ‘f’ iff
lim!→! � (�) = �, lim!→!! � (�) = � �� ���ℎ 

!! ! !!
Example 1: � = � � =  Rational function
!! ! !!!!

Horizontal Asymptotes:
1
4� ! + 1 �! 4 + !
lim � � = lim =   lim � =2
!→!! !→!! 2� ! − � + 1 !→!! ! 1 1
� 2− + !
� �
lim �(�) = 2
!→!

Vertical Asymptotes:

For vertical asymptotes (VA): we check to see if a given function approaches a vertical
line of the form x=a
(a=constant) where xa+ or xa- or both

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Two vertical asymptotes: x=a1 and x=a2

Function is y=h(x)
lim!→!!! ℎ(�) = ∞, ���. This is sufficient to say x= a1 is a vertical asymptote of y=h(x)

We also have lim!→!!! ℎ(�) = −∞, ���, enough to say x=a1 is a vertical asymptote of
y=h(x)

For the line x=a2, lim!→!!! ℎ(�) = −∞, ���. This is enough to say x=a2 is a VA of y=h(x)

lim!→!!! ℎ(�) = ∞, ���.  This is enough to say x=a2 is a VA of y=h(x)

NOTE: Read carefully about vertical asymptotes for rational functions on page 601

!"#
Example 1: Let � = � � = ;  ���  ���, � > 0 & � (���, � ≠ 0)
!
The domain of ‘f’ (only where the bottom and top are both defined) is � = ��� � > 0

Asymptotes:
(I) VA, the only possibility is perhaps
���
lim � � = lim = −∞, ��� �������  lim ln � = −∞, ���
!→!! !→!! � !→!!

Therefore, ln(x) dominates over ‘x’. Therefore, x=0 is a vertical asymptote of ‘f’

(II) Horizontal Asymptote (HA)

Can’t take the limit of the top and bottom
��� because both limits do not equal numbers
lim � � = lim [ ]
!→! !→! � and do not exist.
= 0 
Since ln(x) grows much slower than ‘x’

Therefore, we get y=0 as a horizontal asymptote

because y=lnx grows much slower than the function
y=x.

!"#
F(x)=0 if and only if = 0, � > 0
!
F x = 0 if and only if lnx = 0 
F x = 0 if and only if x = 1

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Graph crosses x-axis at the point (1,0)

!
!!!"#
! ! !
: � =
!!
1 − lnx
=
�!
∴ �� ��� �ℎ�� � ! � = 0 �� ��� ���� �� � = �  ln � = 1

F(x) is increasing when ‘x’ is between (0,e) because f’(x)>0 when 0<x<e
F(x) is decreasing when ‘x’ is between (e,∞) because f’(x)<0 when x>e

Applied Optimization Problems

Idea: Use calculus (and pre-calculus) to formulate real-world problems and solve/find
the optimal solution

Example 1: (minimum material cost)

A rectangular storage container has a volume of 10m3 and no top. The length of the
base is 2 times its width. Base unit cost is $10/m2 and side unit cost of $6/m2. Find the
dimensions (w,l,h) that minimizes the total material cost.

Solution:

Let ‘x’ represent the width x>0

Let ‘y’ represent the height y>0

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10m3 volume  2� ! � = 10 → � ! � = 5  � "����������"

We must next get the “total cost function” ‘C’

C= total cost
C = (base cost) + (front & back cost) + (left & right cost)
C= (2x2)(10) + (2xy)(6)(2) + (xy)(6)(2)
C = 20x2 + 36xy

�
Use x2y=5 to write � = � and sub into ‘C’
�
Therefore, C is a function of ‘x’
!"#
Therefore, � = 20� ! + ,� > 0
!

Critical numbers are needed to minimize ‘C’

180
� ! = 40� − ! , � > 0
�
!"#
Solve � ! = 0 <=> �� ��� ���� �� 40� − =0
!!
180
<=> 40� = !
�
180 9
<=> � ! = =
40 2
! 9
∴�=
2
∴ �ℎ�� �� ��� ���� �������� ����� �ℎ��� � > 0

2nd Derivative Test is easiest to test for minimum

360 ! 9
� !! = 40 + > 0 �ℎ�� � =
�! 2

� �
Local min. when � =
�
Therefore, also it is also the absolute min because there is only one critical point within
the domain.

! 9
∴  � = 2� = 2� =
2
5
∴ℎ=�=
! 9
2
! 9
∴�=
2

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Integration

Calculus has two main parts

1. Derivatives
2. Integrals

Anti derivatives (AD) also known as indefinite integrals

Definition of Anti Derivative: Let y=f (x) be a MATA32 function

An Anti derivative of f (x) is a function F’ (x) with the property F’ (x)=f (x) or [d/dx F (x)=f
(x)]

To find an AD of ‘f’ is called anti differentiation

There are an infinite number of different possibilities for an anti derivative of a
function

Example 1: Let f (x)=x2

�!
�1 � = + 32  �1! � = � !  
3
� !
�2 � = − 2  �2! � = � !
3

We see that F1 (x) and F2 (x) are anti derivatives of f (x)=x2. It’s easy to see that if c is a
!!
real number and is a constant and � � = + �, the F’ (x)=x2=f (x), so is an Anti
!
derivative of f (x)=x2. Are there any other kinds of functions that are also AD’s of f (x)=x2?

!!
Say we use �1 � = + �
!
�1! � = � ! + 1  ≠ � ! ≠ � �

Therefore, G1 (x) is not an anti derivative of f (x)=x2

Therefore, the answer is NO!

!!
We write � ! �� = + �, � �� � ��������
!

→ �������� ����
� ! → ��������� 
�� → ������� �� �ℎ�� �ℎ� ���������� �� ���� ���ℎ �������� �� �
� → �������� �� �����������

This means that the most general AD of f (x)=x2 is x3/3+c

Example 2: Let u(t)=ex

�1 � = � ! + 5   �1! � = � �
�2 � = � ! − 2   �2! � = �(�)

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We often use the following FACT about general ADs:

• Let y=f (x) be a MATA32 function and suppose F1 (x) and F2 (x) be AD’s of f(x)
• Then there is some constant k is a real number such that F1 (x) - F2 (x)=k

F1’ (x) = f (x) and F2’ (x)= f (x)

Therefore, F1’ (x)= F2’ (x)  at each value of ‘x’, the slope of F1’ (x) = slope of F2’ (x)

Let y=f (x) be a MATA32 function

!
1. [ � � ��] = � �
!"
!
2. � �  �� = � � + �, �ℎ��� � �� �� �������� ��������
!"

These show how differentiation and AD are almost inverse processes.

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Integration (Continued)

We consider techniques for solving the following main problem: Given a MATA32
function y=f(x), find � � ��
(i.e. the anti derivative of y=f(x))
** This means, find the “most general” function f(x) such that F’(x)=f(x)

There are 4 methods/techniques:

1. Basic Integration Method
2. Simplify/manipulate f(x) first
3. The Substitution Rule
• Chain rule in reverse
4. Integration by parts

The following table of basic integration formulas is very useful and easy (Table 14.1
page 633)
1. ��� = �� + �
k  is a constant
C  Constant of integration

��!�
2. �� �� = +�
�!�
a constant, � ≠ −1
C  Constant of integration

�
3. �� = �� � + �
�
�≠0
C  Constant of integration

4. �� �� = �� + �

5. �� � �� = � [ � � ��]    � � → ����32 ��������

6. � � ± � � �� = � � �� ± � � ��

WARNING: If you have 2 functions and they are multiplied � � � � ≠ � � ∙

! ! ! ! !"
� �  and same with division ≠
! ! ! ! !"

Example 1: 5� ! + 2� + 32 ��
= 5� ! �� + 2��� + 32��

=5 � ! �� + 2 ��� + 32� (����� ����������� ������� ����)
�! �!
=5 +2 + 32�
3 2
5 !
= � + � ! + 32� + �  (��� �������� �� �ℎ� ���)
3
^ Most general anti derivative of f(x)

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!
Example 2: 5� − ��
!! !
1 √5� = √5√� = √5� !
= 5��� − �� 1 1 1
7� = ∙
! 1 1 7� 7 �
= 5 � ! �� − ��
7 �
2 ! 1
= 5( � ! − ln � + �
3 7
2 5 ! 1
= � ! − ln � + �
3 7

!!!!
Example 3:  ��
!
5� 3
= + ��
� �
3
= 5 + ��
�
= 5� + 3 ln � + �

! !! !!!! ! !! !
Example 4: ��
! ! !!
�! +� !
� !! + 2� ! � + � ! = (� ! + �)!
= �� 
�! + �
= � ! + � ��
�
= �! + + �
2

The Substitution Technique

Idea: Given a “hard integral”. Often a strategic substitution can transform it into much
easier one

The “strategic substitution” is based on the chain rule

Example 1: � ! + 3 ! 2���
= � ! �� ��� ��� �ℎ�� ! �! �� 
�! ��� � = � ! + 3
= +� ��
8 = 2� → �� = 2���
�! + 3 !
��
= +�
8

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Example 2: � ! + 3 ! ���
�!1
= ��
2
=
!
� ! �� ��� � = � ! + 3 → �ℎ� � − ������������ 
! 1
1 �! �� = 2��� → = ���
= ∙ +� 2��
2 8
1 ! !
= � +3 +�
16

Example 3: � ! + 3 ! 5���
 ��� � = � ! + 3 �����

!" !
Example 4: → �� ≠ ln 3� + 2 + � The number on the denominator must be
!!!! !!!!
1 the same as the value of the x in the dx
= ��
3� + 2
! !
= ∙ ��
! ! ��� � = 3� + 2 
1 1
= �� �� = 3�� 
3 � 1
1 �� = ��
= ln � + � 3
3
1
= ln 3� + 2 + �
3

Example 5: Let � = � ��������, � ≠ 0

� ∝! �� ��� � =∝ � 
�� =∝ ��  �������:
= � ! �� = � ! + � 1
1
∴ �� = ��
∝ ! � !!! ��
!
= � ∙ ��
∝ 1
1 1 1 = − � !!! + �
= � �� = ∙ � ! + � = ∙ � ∝! + �
! 5
∝ ∝ ∝

The Substitution Formula in General:

� = �(�)
!
� � � � � �� = � � �� ��
= � ! (�)
��
(“Given” (i.e. we have exactly or can get this form) = “easier form” �� = � ! (�)��

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Harder Examples: ��� � = ln(�) = �(�) ������ ��:

!" !
Example 1: = �� 1
!"#! !"#! �� = ∙ �� = � ! (�)�� !!√1 + √2!� ! ��
1 1 �
= ∙ �� 1
� ��� �(�) = = ! �! + �!
1 1 �
= ∙ ��
��� �
1
= ��  
�
= ln  |�| + �  
= ln ln � + �

Example 2: 1 + � ! � ! ��
!
! !
= � �−1
! ∙ ��
! � = 1 + � ! → � ! = � − 1 
1 !
�� = 2��� 
= � ! � ! − 2� + 1 ��
2 1
1 ! ! ! �� = ���
= � ! − 2� ! + � ! �� 2
2 � ! = � − 1 → � ! = (� ! )! = (� − 1)!
1 2 ! 4 ! 2 !
= ∙ �! − ∙ �! + ∙ �! + �
2 7 5 3
1 ! 2 ! 1 !
= 1 + �! ! − 1 + �! ! + 1 + �! ! +�
7 5 3

Integration By Parts (IBP)

General Formula has the Form:

��� = �� = ��� → �� ���� �ℎ�� �� �� ������

“Given ^ We get this
exact or we
can get it � = �(�)
�� = � ! (�)�� 
�� = � ! (�)��  (1)
(2)
� = �(�)

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Integration by Parts (IBP)

Idea: Integration by Parts turns a given Anti Derivative into one that is hopefully easier
than the given one
- Integration by Parts is based on the product rule

IBP Formula:
� � �! � �� = � � � � − � � � ! � ��

Here is an easier way to remember Integration by Parts:

� = � �                                                    �� = � ! � �� 

�� = � ! � ��   � = � � = �! � �� 

��� = �� − ��� 

** The constant ‘c’ will cancel out, so no need to include it now**

Remarks: The skill with using Integration by Parts comes from:

1. Making sure the new integral ��� is no harder than the given on ���
2. Selecting ‘dv’ so that ‘v’ can be found

Example 1: � !! ��� (Very standard IBP problem)

= �� !! ��
= −�� !! �� — � !! 1�� � = �    �� = � !! �� 
= −�� !! + � !! ��
= −�� !! − � !! + � �� = 1��   � = ! � !! �� = −� !!

I will try the following:

� !! �� � = � !!    �� = ��� 
�!
�� = −� !!    � =
2

And you see that Integration by parts “fails” because I chose the wrong function for u &
dv

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� 1
ln(�) =
Example 2: ln x dx �� �
1
= ln � − 1�� ���  ! ln(�) �� =
�
! ���ℎ ���, �� ���
= ��� � − � ∙ ∙ �� � = ln(�)    �� = 1�� 
!
!
= ��� � − 1�� �� = ∙ ��  � = ∫ 1�� = �
!
= ��� � − � + �

WARNING: To find � � �� it may require a couple (or several) techniques

!
Example 3: � �� ��� � = √� → � ! = � 
�� � !
=2 � ! ��� ∴ 2��� = ��  = !� ! !
� = �   �� = � ! �� ��
�� 1 1
= 2{�� ! − �^���} �� = 1��   � = � ! = =
�� 2√� 2�
= 2 �� ! − � ! + �
= 2 �� ! − � ! + �

Example from 14.3: Integration with a given condition

Given that � ! � = 5� ! + 3  ����� � 1 = 2

Find the function f(x)

Solution:
5 !
� � = � ! � �� = 5� ! + 3�� = � + 3� + �
3

Solve for f (1)

5 !
2=� 1 = � + 3� + �
3
8
�=−
3

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The Definite Integral and the Fundamental Theorem of Calculus

The Definite Integral

We’ll see that the definition of the definite integral is based on these simple ideas

Begin with a given interval [a,b] (a<b) and a continuous MATA32 function y= f(x) where
� ∈ [�, �]

Let ��  = 1,2,3,4 … = ������� �������

(� − �)
��� ∆� =
�
=Sub-interval width

As ‘n’ gets larger and larger ∆� gets

smaller and smaller
lim ∆� = 0
!→!

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Right endpoint of the kth sub-interval is �! = � + � ∆� = �, �ℎ��� � = 0 

�! = � + � ∆� = �, �ℎ��� � = �

In the nth Riemann Sum is defined as follows:

�� = � �1 ∆� + � �2 ∆� + � �3 ∆� + ⋯ + � �� ∆�

In the Summation Notation (Sigma Notation)

!

�� = � � ∆�
!!!
** ‘k’ must start at 1

Definition: The definite integral of y=f(x) from ‘a’ to ‘b’ is:

! !

� � �� = lim � �! ∆�
!→!
! !!!

!
!
� � �� = # is a special real number that is the limit of a certain kind of sum

Special, Important Case:

If � � ≥ 0 when � ∈ �, � then,

� � �� =  �ℎ� ���� �� �ℎ� ������ ����� �ℎ� �����, ����� � − ���� �ℎ��� � ≤ � ≤ �

!

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!
In order to use the definition of !
� � �� , we need to be careful and make use of some
other formulas
!

� + � + � + � + ⋯ + � = �� = � 
!!!
!
� �+1
1+2+3+4+⋯+ � −1 +� = �=
2
!!!
!""
100 101
�= = 50 101 = 5050 
2
!!!
!
! ! ! ! ! !
� � + 1 2� + 1
1 +2 +3 +4 +⋯+ � −1 +� = �! =
6
!!!

Example 1: let � ≥ 0 ��� ��� � = � � = � !

Use the definition to find:

� ! ��
!

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Solution:

! !

� � �� = lim � �! ∆�
!→!
! !!!
! !
� �
= lim �!
!→! � �
!!!
! ! ! ! !
= lim!→! !!! �
! !
� !
� � + 1 2� + 1 �−0 �
= lim [ ∙( ) ∆� = =
!→! � 6 � �
� � + 1 2� + 1 �! = � + �(∆�)
= lim � ! ∙ ∙ �
� � 6�
= 0+�! !
!→!
1 �
= �! ∙
�
= ! ! (�)
3
�! �
= !
3 �
!
�! �(�! ) = (�! ) = !! ! (�)!
!

∴ � ! �� = = ���� �� ������ �
3 � !
! = ! ! (�)!
�

The Following is TRUE:

If every definite integral can only be found by the definition, we would not go very far!

To help with this we have…

The Fundamental theorem of calculus (FTC)

The Fundamental Theorem of Calculus (FTC)

Let y=f(x) be a MATA32 continuous function where ��[�, �] for some a<b
Then,

� � �� = � � − � � , �ℎ��� � � �� ��� ���� ���������� �� �(�)
!
�=�
=� � |
�=�

!
Example 1: !
� � ��
�! � = �
= |
3 �=0
� ! 0!
= −
3 3
� !
=
3

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! !! ! !!
Example 2: !
� �� = | !!!
!!!
!
�! �!
= −
3 3
� ! 1
= −
3 3
1
= �! − 1
3

�(�) = � √!  
� = 1; � = 1 → � = √1 = 1 
!
Example 3: !
� ! �� � = 4; � = 4 → � = √4 = 2 
!
�. ������������ 
=2 � ! �� !
��� � = √� = � !
!
! 1 ! 1
�=2 �� = � !! =
=2 �� !
− � ! �� 2 2 √�
�=1 ∴ 2√��� = ��
!
�=2 �.  ������ ��������� ��� ������
= 2 2� ! − � − � !
�=1 � = 1 → � = √� = √1 = 1
= 2 2� ! − � − � ! − � � = 4 → � = √� = √4 = 2
�. ����������� �� �����
� = �     �� = � ! ��
�� = ��   � = ! � ! �� = � !

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Definite Integral, FTC Continued and Properties of the Definite Integral

Recall the definition of the definite integral:

Let y=f(x) be a continuous function on an interval [a,b]

The definite integral of ‘f’ over [a,b] is

! !

� � �� = lim � �! ∆�
!→!
! !!!

� − �� − �
∆� = = ��� − �������� �����ℎ 
= ��� − �������� �����ℎ 
� �

��!!==��++�(∆�)
� ∆�

∴ �ℎ� �������� �������� �� � ���� ������ ��� �� �ℎ� ����� �� � ������� ���� �� ���  �������� ��������
= � ������

We have a related concept called Anti Derivative (AD)

A function ‘F’ is an AD of ‘f’ iff F’ (x)=f (x)

We write the most general AD of ‘f’ as

� � ��   Stands for some function

Definite and Indefinite integral are related through FTC

!
Usually, finding ! � � �� via the definition is “hard”
Fortunately, we have FTC

Fundamental Theorem of Calculus (FTC)

! !!!
If ‘F’ is an AD of ‘f’, then ! � � �� = � � | !!! = � � − �(�)

In using FTC:
1. Find � � ��  = � �
!
2. � � − � � = !
� � ��

Properties of the Definite Integral

‘f’ and ‘g’ are continuous functions on [a,b]

!
1. !
� � �� = 0
! !

� � �� = − � � ��
! !

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! ! !
2. !
� � ± � � �� = !
� � �� ± !
� � ��

! ! !
WARNING: !
� � ± � � �� ≠ !
� � ��   ∙ !
� � �� ��� ���� ���ℎ ���������
! !
� � !
� � ��
�� ≠ !
� � � � ��
! !

3. If k= a constant, then
! !

�� � �� = � � � ��
! !

4. The “Partition” Property

Let ��[�, �] then
! ! !

� � �� = � � �� + � � ��
! ! !
ℎ��� � = � � �� ��� ���������� �������� ��  �, �  ��� �� ��������

5. The “Area” property

Let R be the region in the xy-plane that has boundaries: the lines x=a, x=b, the x-
axis and the curve y=f(x)

Area of R=
�

� � ��
�
�

|� � |�� = � + � − (�)
�

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FTC, Applications of Integral to Area, Areas Bounded Between Curves

FTC (Fundamental Theorem of Calculus)

If y=f(x) is a continuous on [a,b] and F is an Anti Derivative (AD) of ‘f’, then
!

� � �� = � � − � � ,  �! � = � �
!

A nice application of this is when we have “marginal _____”

See page 664 (top)

By FTC,
!

� ! � �� = � � − �(�)
!

** Sometimes called the ‘Net Change Theorem’

NOTE: f(x) is an AD of f’(x)

Example 1: (See example 5, page 664)

Suppose a marginal revenue function is

!
� 1
�! � = +  . �ℎ��� � > 0 ��� �� � ��������
� �

Find the change in revenue from x=10 to x=12 (in some appropriate units)

Solution: We would like r(12)=r(10)

By FTC (NCT)
��
� 12 − � 10 = � ! � ��
��
�� !" ��
� � 1 � ! 1
= + �� = ( )�� + ��
� � � �
�� !" ��
� = 12 � = 12
= 2� ! + ln �
� =1− � = 10
!" !"
=2 � −� + ln 12 − ln 10

Can leave this (^) as is

**When I integrate a derivative, I get a change in the function

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Example 2: (Page 665 #53)

NOTE: Answer in the back of the book is wrong

Let ‘x’ be income

Let ‘N’ be the number of people (in some kind of sample) that have an annual income of
≥�
∴ � = � � ��� ���� �������� �� �  � > 0

We are given the following:

!"
= −�� !! , �ℎ��� �&� ��� ��������� ��� �&� > 0
!"
�
=− !
�
��
�� ��� �ℎ�� < 0 
��

Let 0<a<b where a&b are constants. Write an expression that gives the total number of
people with annual income in the interval [a,b]

Thus, we need to calculate N(a)-N(b)

(This difference gives the number of

people with incomes ≥ � ��� < �)

! !
��
� � −� � = �� = −�� !! ��
��
! !
!

= −� � !! ��
Signs change !
!!
! !! � ! !
�� , �� � = 1
=� !
� �� = ! !!
� !
� �� , �� � ≠ 1

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If,
!
� 1 �=� �
1. � ln ,   � = 1 → �� = ln � | = ln � − ln � = ln ( )
� � �=� �
!
! !
!! !!
� !!!! � !!!! �!!!!
2. �  � �� , �≠1→ � �� = =� −
�+1 −� + 1 −� + 1
! !

Applications of Integral to Area

Example 1: (See page 673 Ex. 1)

Find the area of the region bounded by x-axis, lines x=1 and x=3, and the curve
� = � ! − 6� = �(�)

Solution: We do need a “decent sketch” but does not need to be exact (only need to know
where the graph is positive and negative)

Solve f(x)=0
� � = � � ! − 6 = 0 
∴ � = 0 ��� � = ± 6
lim � � = ∞ 
!→!
����ℎ ������� ������������ ��������
lim � � = −∞
!→!!
����ℎ ������� ������������ ��������

� � = � �1 + � �2 + � �3
!

∗� � = � � ��  
!
! ! !

� � = � � �� + [−� � ]�� + � � �� = 14
!! !! !

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Areas Bounded Between 2 (or more) Curves

Case #1: Area is best understood using “vertical strips” or “vertical elements”
Case #2: Area is best understood using “horizontal strips” or “horizontal elements”

Case #1: Given on interval [a,b]

Width = ∆�
Height = � � − � �
!

(� �! − �(�! )(∆�)
!!!

! !

���� �� � = � � − � � �� = ��� − ������ ��

! !

Case #2:

���� �� � = � � − � � ��
!
!

= ���ℎ� �������� − ���� �������� ��
!

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Important Question: What happens if our region ‘R’ is seen as both vertical and
horizontal element?

Answer: Mostly happens that one of case 1 or 2 is easier/less work than the other

Example 1: Use the diagram to see the region ‘R’

Case #1:
��� �������� = � = � + 12 
������ �������� =   − � + 12
���� 2 ��������� ������� ������ �������� �ℎ����� �� � = −3

� � = � �1 + � �2
!! !

= � + 12— � + 12 ��+ � + 12 − � �� = ���� ����

!!" !!

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Case #2:
���ℎ� �������� = � = � = � �
���� �������� = � ! = � + 12 = � ! − 12 
!
343
� � = � − � ! − 12 �� =
6
!!

Good Luck!!

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