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Mathematica® Teacher's Edition (2002)

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11.10 Mixing Text and Formulas

The simplest way to mix text and formulas in a Mathematica TE notebook is to put each kind of material in a separate cell. Sometimes, however, you may want to embed a formula within a cell of text, or vice versa.

Entering a formula within text, or vice versa.

Here is a notebook with formulas embedded in a text cell.

Mathematica TE notebooks often contain both formulas that are intended for actual evaluation by Mathematica TE, and ones that are intended just to be read in a more passive way.
When you insert a formula in text, you can use the Convert to StandardForm and Convert to TraditionalForm menu commands within the formula to convert it to StandardForm or TraditionalForm. StandardForm is normally appropriate whenever the formula is thought of as a Mathematica TE program fragment.
In general, however, you can use exactly the same mechanisms for entering formulas, whether or not they will ultimately be given as Mathematica TE input.
You should realize, however, that to make the detailed typography of typical formulas look as good as possible, Mathematica TE automatically does things such as inserting spaces around certain operators. But these kinds of adjustments can potentially be inappropriate if you use notation in very different ways from the ones Mathematica TE is expecting.