I have just enabled the LaTeX and Algebra notation filters for both Moodle Servers (at a teacher's request). Essentially, this lets you enter a particularly formatted code (see the LaTeX notation link below), and have that display as a mathematical formula.
EXAMPLE: $$ \sqrt{2} \sqrt[n]{x} $$
MUST INCLUDE 2 $ signs before and after
LaTeX Filter documentation:
http://docs.moodle.org/en/TeX_filter
Algebra Filter documentation:
http://docs.moodle.org/en/Algebra_filter
LaTeX notation guide:
http://docs.moodle.org/test/Development:MediaWiki_TeX_test