Algebra in Business and Finance

GRE Quantitative · Axiom Academy

Algebra in Business and Finance One equation, three business decisions — break-even, equilibrium price, and the exponent that makes compounding compound. Drag each lever and watch the number move. You're running the numbers for a small company: what price breaks even , what price balances supply and demand , and why a loan's growth rate is an exponent, not a multiplier — three GRE algebra setups, each one a real decision. A widget costs 12 to make and fixed costs run 10,000 . Drag the selling price and watch how many units you'd need to sell before the business stops losing money. Supply is S = 2p + 100 , demand is D = 500 - 3p . Drag the price and watch supply and demand pull apart — then find the one price where they land on the same number. Simple vs. compound — the gap that matters A 200,000 loan grows for 10 years using A = P(1+r)^t . Drag the interest rate and watch how far that pulls away from just multiplying the rate by the years. Three business questions, one algebra toolkit: break-even is just solving for x ; equilibrium is solving two linear equations for the price where they agree; and compounding is the difference between a straight line ( 1+rt ) and a curve ( (1+r)^t ). On the GRE, every "business scenario" question is one of these three moves wearing a word problem.

This is the written version of the interactive lesson above. See the full GRE Quantitative course.