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.
BREAKING DOWN '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 â€“ the elimination method â€“ 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 â€“ 4y = 8
Using the elimination method, one would add the two equations as follows:
8x + 6y = 16
8x â€“ 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 â€“ 24 = 16 â€“ 24
8x = 8
X =  1

Linear Relationship
A statistical term used to describe the directly proportional ... 
HighLow Method
In cost accounting, a way of attempting to separate out fixed ... 
Modified Cash Basis
An accounting method that combines elements of the two major ... 
Boolean Algebra
A division of mathematics which deals with operations on logical ... 
Accounting Method
The method by which income and expenses are reported for taxation ... 
Accounting Equation
The equation that is the foundation of double entry accounting. ...

Investing Basics
Mathematics
These college classes will help you prepare for the working world  and stand out from your peers. 
Professionals
Regression Analysis
CFA Level 1  Regression Analysis 
Economics
Understanding Regression
Regression is a statistical analysis that attempts to predict the effect of one or more variables on another variable. 
Professionals
Common Probability Distributions
CFA Level 1  Common Probability Distributions  Basics 
Investing
What's a Sensitivity Analysis?
Sensitivity analysis is used in financial modeling to determine how one variable (the target variable) may be affected by changes in another variable (the input variable). 
Professionals
Variable Contracts
FINRA Series 6: Section 11 Variable Contracts 
Credit & Loans
Explaining Equated Monthly Installments
An equated monthly installment is a fixed payment a borrower makes to a lender on the same date of each month. 
Investing News
Stock and Flow Variables Explained: A Closer Look at Apple
The difference between stock and flow variables is an essential concept in finance and economics. We illustrate with financial statements from Apple Inc. 
Professionals
Accounting Methods
Accounting Methods 
Professionals
Quantitative Methods
CFA Level 1: Section 2 Quantitative Methods

What variables are most important when making a prediction through sensitivity analysis?
Explore sensitivity analysis and how this method considers different variables to determine a course of action based on statistical ... Read Answer >> 
How can you find the demand function from the utility function?
Learn about how the utility function can be used to derive the demand function, and how both of these concepts relate to ... Read Answer >> 
When do you use installment sales method vs. the cost recovery method?
Take a deeper look at the installment sales method and the cost recovery method of recognizing business sales revenue and ... Read Answer >> 
What is the best method of calculating depreciation for tax reporting purposes?
Learn the best method for calculating depreciation for tax reporting purposes according to generally accepted accounting ... Read Answer >> 
What is the difference between direct costs and variable costs?
Learn about variable costs and direct costs, how direct costs and variable costs are classified and the differences between ... Read Answer >> 
How do you calculate the income effect distinctly from the price effect?
Learn more about how the income and substitution effects operate in economics. Find out how to separate either of these while ... Read Answer >>