Math

From Wikistudy.ByJuho.fi
Revision as of 13:30, 8 July 2013 by Jukeboksi (talk | contribs) (Definition of business mathematics inserted as a quote attributed to wikipedia)

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.”

~ Wikipedia on Business mathematics


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: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 5

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
  • 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 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: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 )