Math: Difference between revisions
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=== Business Math week 3 === | === Business Math week 3 === | ||
* Interest calcualations | * Interest calcualations | ||
** Simple interest calculation '''[[w:Interest|Interest]] = [[w:Bond_(finance)#Principal|Principal]] * [[w:Interest rate|Interest rate]] * Time ( I = P * R * T )''' | ** Simple interest calculation '''[[w:Interest|Interest]] = [[w:Bond_(finance)#Principal|Principal]] * [[w:Interest rate|Interest rate]] * Time ( I = P * R * T )''' ( [[w:fi:Korko]] = Pääoma * Korkoprosentti ) | ||
** '''[[w:Compound interest]]''' arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called ''compounding''. | ** '''[[w:Compound interest]]''' arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called ''compounding''. | ||
=== Business Math week 4 === | === Business Math week 4 === | ||
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* '''[[w:Index (economics)]]''' - In [[w:economics]] and [[w:finance]], an index is a statistical measure of changes in a representative group of individual data points. ( Wikipedia ) | * '''[[w:Index (economics)]]''' - In [[w:economics]] and [[w:finance]], an index is a statistical measure of changes in a representative group of individual data points. ( Wikipedia ) | ||
* calculation of simple indices, | * calculation of simple indices, | ||
* A '''[[w:price index]]''' (''plural'': “price indices” or “price indexes”) is a normalized [[w:average]] (typically a [[w:Weighted mean|''weighted'' average]]) of [[w:price]]s for a given class of [[w:Good (economics)|goods]] or [[w:Service (economics)|services]] in a given region, during a given interval of time. It is a [[w:statistic]] designed to help to compare how these prices, taken as a whole, differ between time periods or geographical locations. ( Wikipedia ) | * A '''[[w:price index]]''' ( [[w:fi:Hintaindeksi]] ) (''plural'': “price indices” or “price indexes”) is a normalized [[w:average]] (typically a [[w:Weighted mean|''weighted'' average]]) of [[w:price]]s for a given class of [[w:Good (economics)|goods]] or [[w:Service (economics)|services]] in a given region, during a given interval of time. It is a [[w:statistic]] designed to help to compare how these prices, taken as a whole, differ between time periods or geographical locations. ( Wikipedia ) | ||
* A '''[[w:consumer price index]]''' ('''[[w:CPI]]''') measures changes in the price level of [[w:Final goods|consumer goods]] and [[w:Consumer Services|services]] purchased by households. ( Wikipedia ) | * A '''[[w:consumer price index]]''' ('''[[w:CPI]]''') ( [[w:fi:Kuluttajahintaindeksi]] ) measures changes in the price level of [[w:Final goods|consumer goods]] and [[w:Consumer Services|services]] purchased by households. ( Wikipedia ) | ||
* A '''[[w:cost-of-living index]]''' is a theoretical [[w:price index]] that measures relative [[w:cost of living]] over time or regions. It is an index that measures differences in the price of [[w:good (economics)|goods]] and [[w:service (economics)|service]]s, and allows for substitutions to other items as prices vary. ( Wikipedia ) | * A '''[[w:cost-of-living index]]''' is a theoretical [[w:price index]] that measures relative [[w:cost of living]] over time or regions. It is an index that measures differences in the price of [[w:good (economics)|goods]] and [[w:service (economics)|service]]s, and allows for substitutions to other items as prices vary. ( Wikipedia ) | ||
=== Business Math week 5 === | === Business Math week 5 === | ||
* '''[[w:Value added tax]] ( VAT )''' | * '''[[w:Value added tax]] ( VAT )''' ( [[w:fi:Arvonlisävero]] ) | ||
* The '''[[w:foreign exchange market]]''' (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. ( Wikipedia ) | * The '''[[w:foreign exchange market]]''' (forex, FX, or currency market) ( [[w:fi:Valuuttamarkkinat]] ) is a form of exchange for the global decentralized trading of international currencies. ( Wikipedia ) | ||
* The '''Current rate''' and the '''[[w:forward exchange rate]]''' (also referred to as '''forward rate''' or '''forward price''') is the [[W:exchange rate]] at which a [[W:commercial bank|bank]] agrees to exchange one [[w:currency]] for another at a future date when it enters into a [[w:forward contract]] with an investor. [[w:Multinational corporation]]s, banks, and other [[w:financial institution]]s enter into forward contracts to take advantage of the forward rate for '''[[w:hedge (finance)|hedging]] purposes'''. ( Wikipedia ) | * The '''Current rate''' and the '''[[w:forward exchange rate]]''' (also referred to as '''forward rate''' or '''forward price''') is the [[W:exchange rate]] at which a [[W:commercial bank|bank]] agrees to exchange one [[w:currency]] for another at a future date when it enters into a [[w:forward contract]] with an investor. [[w:Multinational corporation]]s, banks, and other [[w:financial institution]]s enter into forward contracts to take advantage of the forward rate for '''[[w:hedge (finance)|hedging]] purposes'''. ( Wikipedia ) | ||
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* '''Periodic payment''' | * '''Periodic payment''' | ||
* '''Long-term [[w:loan]]''' | * '''Long-term [[w:loan]]''' ( [[w:fi:Laina]] ) | ||
* The term '''[[w:annual percentage rate]] (APR)''', also called nominal APR, and the term effective APR, also called EAPR describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. ( Wikipedia ) It is solved with the '''[[w:Internal rate of return]] ( IRR )''' formula in Excel ( Teacher ) | * The term '''[[w:annual percentage rate]] (APR)''' ( [[w:fi:Todellinen vuosikorko]] ) , also called nominal APR, and the term effective APR, also called EAPR describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. ( Wikipedia ) It is solved with the '''[[w:Internal rate of return]] ( IRR )''' ( [[w:fi:Efektiivinen korko]] ) formula in Excel ( Teacher ) | ||
::The term includes the ''[[w:nominal APR]]'' and the ''[[w:effective APR]]'' | ::The term includes the ''[[w:nominal APR]]'' and the ''[[w:effective APR]]'' | ||
* '''[[w:Hire purchase]]''' is the legal term for a contract, in which persons usually agree to pay for goods in parts or a percentage at a time. ( Wikipedia ) | * '''[[w:Hire purchase]]''' ( [[w:fi:Osamaksu]] ) is the legal term for a contract, in which persons usually agree to pay for goods in parts or a percentage at a time. ( Wikipedia ) | ||
* '''[[w:Leasing]]''' is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. ( Wikipedia ) | * '''[[w:Leasing]]''' ( [[w:fi:Leasing]] ) is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. ( Wikipedia ) | ||
Revision as of 12:43, 21 August 2013
“Business maths are mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis.”
- Mathematics typically used in commerce includes elementary arithmetic, elementary algebra, statistics and probability. Business management can be made more effective in some cases by use of more advanced mathematics such as calculus, matrix algebra and linear programming. ( Wikipedia )
Business Math week 3
- Interest calcualations
- Simple interest calculation Interest = Principal * Interest rate * Time ( I = P * R * T ) ( w:fi:Korko = Pääoma * Korkoprosentti )
- w:Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compounding.
Business Math week 4
- w:Index (economics) - In w:economics and w:finance, an index is a statistical measure of changes in a representative group of individual data points. ( Wikipedia )
- calculation of simple indices,
- A w:price index ( w:fi:Hintaindeksi ) (plural: “price indices” or “price indexes”) is a normalized w:average (typically a weighted average) of w:prices for a given class of goods or services in a given region, during a given interval of time. It is a w:statistic designed to help to compare how these prices, taken as a whole, differ between time periods or geographical locations. ( Wikipedia )
- A w:consumer price index (w:CPI) ( w:fi:Kuluttajahintaindeksi ) measures changes in the price level of consumer goods and services purchased by households. ( Wikipedia )
- A w:cost-of-living index is a theoretical w:price index that measures relative w:cost of living over time or regions. It is an index that measures differences in the price of goods and services, and allows for substitutions to other items as prices vary. ( Wikipedia )
Business Math week 5
- w:Value added tax ( VAT ) ( w:fi:Arvonlisävero )
- The w:foreign exchange market (forex, FX, or currency market) ( w:fi:Valuuttamarkkinat ) is a form of exchange for the global decentralized trading of international currencies. ( Wikipedia )
- The Current rate and the w:forward exchange rate (also referred to as forward rate or forward price) is the W:exchange rate at which a bank agrees to exchange one w:currency for another at a future date when it enters into a w:forward contract with an investor. w:Multinational corporations, banks, and other w:financial institutions enter into forward contracts to take advantage of the forward rate for hedging purposes. ( Wikipedia )
Business Math week 6
- w:Compound interest calculation arises when interest is added to the w:principal, so that, from that moment on, the interest that has been added also earns w:interest. This addition of interest to the principal is called compounding. ( Wikipedia )
- The time value of money is the value of money figuring in a given amount of interest earned or inflation accrued over a given amount of time. ( Wikipedia )
Business Math 2
- Periodic payment
- Long-term w:loan ( w:fi:Laina )
- The term w:annual percentage rate (APR) ( w:fi:Todellinen vuosikorko ) , also called nominal APR, and the term effective APR, also called EAPR describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. ( Wikipedia ) It is solved with the w:Internal rate of return ( IRR ) ( w:fi:Efektiivinen korko ) formula in Excel ( Teacher )
- The term includes the w:nominal APR and the w:effective APR
- w:Hire purchase ( w:fi:Osamaksu ) is the legal term for a contract, in which persons usually agree to pay for goods in parts or a percentage at a time. ( Wikipedia )
- w:Leasing ( w:fi:Leasing ) is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. ( Wikipedia )