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

Binary Option
A type of option in which the payoff is structured to be either ... 
Boolean Algebra
A division of mathematics which deals with operations on logical ... 
Fibonacci Numbers/Lines
Leonardo Fibonacci was an Italian mathematician born in the 12th ... 
Binomial Tree
A graphical representation of possible intrinsic values that ... 
Compound Annual Growth Rate  CAGR
The yearoveryear growth rate of an investment over a specified ... 
MeanVariance Analysis
The process of weighing risk against expected return. Mean variance ...

Home & Auto
Insure Your Future With A Career As ...

Investing Basics
Calculating Beta: Portfolio Math For ...

Professionals
Quants: The Rocket Scientists Of Wall ...

Personal Finance
Financial Physics: "Natural" Market ...