This report includes a general overview of the literature on computer use at the two-year college level and in specific academic disciplines, and a description of the development of a computer assisted instruction (CAI) program in linear algebra. The literature review was based on articles from journals, Dissertation Abstracts International, a computer search of ERIC, and inquiries to people using CAI. Materials are grouped by mathematical subject (pre-calculus, algebra, trigonometry, calculus, finite mathematics, and linear algebra) and computer uses for each are described in the areas of placement/diagnostic testing, drill and practice, demonstrations, tutorials, problem-solving, or simulations, with programs oriented towards drill and practice the most numerous. A rationale for the choice of topic for developing a CAI program points out the lack of programs available in linear algebra problem-solving, and the development of an interactive, goal-oriented, problem-solving program for linear algebra is documented. Programmed on a Compucolor II microcomputer, it demonstrates the linear transformations of rotation, dilation, and reflection on the two-dimensional plane in the form of a user challenge. Information given includes the underlying principles, a program overview, a modular flow chart, and specific user instructions (preliminaries, running the program, examples and explanations, and mathematical concepts). A 9-page bibliography is provided. (LMM)