The first part of Course III focuses on matrix algebra, graphs and functions, and combinatorics. Topics studied include: matrices and transformations, the solution of systems of linear equations, matrix multiplication, matrix inversion and a field of 2 x 2 matrices. The section on graphs and functions considers regions of the plane and translations, functions and solution of equations, operations on functions, and bounded functions and asymptotes. The chapter on combinatorics discusses such topics as a counting principle and permutations, the binomial theorem, and mathematical induction. (FL)