Algebraic Method
Definition of 'Algebraic Method'A mathematical means of solving a pair of linear equations. Algebraic method refers to a method of solving an equation involving two or more variables where one of the variables is expressed as a function of one of the other variables. There are typically two algebraic methods used in solving these types of equations: the substitution method and the elimination method. |
|
Investopedia explains 'Algebraic Method'One algebraic method is the substitution method. In this case, the value of one variable is expressed in terms of another variable and then substituted in the equation. In the other algebraic method – the elimination method – the equation is solved in terms of one unknown variable after the other variable has been eliminated by adding or subtracting the equations. For example, to solve:8x + 6y = 16 -8x – 4y = -8 Using the elimination method, one would add the two equations as follows: 8x + 6y = 16 -8x – 4y = -8 2y = 8 y = 4 The variable "x" has been eliminated. Once the value for y is known, it is possible to solve for x by substituting the value for y in either equation: 8x + 6y = 16 8x + 6(4) = 16 8x + 24 = 16 8x + 24 – 24 = 16 – 24 8x = -8 X = - 1 |
Related Definitions
Articles Of Interest
-
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Calculating Beta: Portfolio Math For The Average Investor
Beta is a useful tool for calculating risk, but the formulas provided online aren't specific to you. Learn how to make your own. -
Financial Physics: "Natural" Market Laws
Physics uses math to define the laws of the universe; here, we look at what laws explain the financial universe. -
Insure Your Future With A Career As An Actuary
If you've got excellent math skills, they can add up to a lucrative career as an actuary. -
What is the chaos theory?
The chaos theory is a complicated and disputed mathematical theory that seeks to explain the effect of seemingly insignificant factors. The chaos theory name originates from the idea that the ... -
How Risk Free Is The Risk-Free Rate Of Return?
This rate is rarely questioned - unless the economy falls into disarray. -
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves. -
Regression Basics For Business Analysis
This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how. -
The Copper King: An Empire Built On Manipulation
Find out how Yasuo Hamanaka's actions in the copper market forever changed the rules for commodity traders.
Free Annual Reports