Concept:
According to the Cayley-Hamilton Theorem, every square matrix satisfies its own characteristic equation. The characteristic equation is given by \( \det(A - \lambda I) = 0 \). For a \( 2 \times 2 \) matrix \( A \), this equation is \( \lambda^2 - \text{tr}(A)\lambda + \det(A) = 0 \).
Step 1: Finding the trace and determinant of matrix \( A \).
The trace (\( \text{tr} \)) is the sum of the diagonal elements:
\[
\text{tr}(A) = 1 + 2 = 3
\]
The determinant (\( \det \)) is calculated as:
\[
\det(A) = (1 \times 2) - (5 \times 0) = 2
\]
Step 2: Forming the characteristic equation and applying the theorem.
Substituting the values into the formula \( \lambda^2 - \text{tr}(A)\lambda + \det(A) = 0 \):
\[
\lambda^2 - 3\lambda + 2 = 0
\]
By Cayley-Hamilton Theorem, replacing \( \lambda \) with \( A \) and the constant term with \( 2I \):
\[
A^2 - 3A + 2I = 0
\]