# Business Mathematics

MGT 110## Course Description

Prerequisite: MATH LEVEL 3 and READING LEVEL 2 and WRITING LEVEL 2. Covers principles necessary for an understanding of math of the business world. Includes various methods of computing interest and bank discounts; installment buying; F.I.C.A. Federal Income Taxes and other payroll deductions; markup, cost and selling prices; various wage payment systems; sales and property taxes; insurance; measures of central tendency; and an introduction to the metric system. (45-0)

## Outcomes and Objectives

### Demonstrate an understanding of Basic Arithmetic.

#### Objectives:

- Add, subtract, multiply, and divide whole numbers.
- Add, subtract, multiply, and divide fractions.
- Add, subtract, multiply, and divide decimals.
- Describe basic rounding rules.
- Describe chain calculations.

### Demonstrate an understanding of installment plans.

#### Objectives:

- Define an installment plan.
- Solve problems relating to installment purchases.
- Calculate the annual percentage rate using the appropriate table.
- Calculate rebates involving installment plans.

### Demonstrate an understanding of Formulas, Ratios, and Percent.

#### Objectives:

- Solve equation for one variable.
- Carry out fraction, decimal, and percent conversions.
- Set up and simplify ratios and proportions.
- Describe the meaning of percent.
- Solve percent equations.

### Demonstrate an understanding of Trade, Quantity, and Sales discounts.

#### Objectives:

- Define the basic terminology relating to commercial discounts.
- Explain the purpose of commercial discounts.
- Solve problems using trade discounts.
- Solve problems using quantity discounts.
- Solve problems using sales discounts.

### Demonstrate an understanding of Pricing.

#### Objectives:

- Define the basic terminology relating to pricing.
- Solve for markons based on cost and selling price.
- Solve for markdowns.
- Solve for pricing situations involving shrinkage, irregulars, and planned markdowns.

### Demonstrate an understanding of simple interest.

#### Objectives:

- Describe simple interest.
- Solve problems involving simple interest computations.
- Differentiate between maturity and present value.

### Demonstrate an understanding of compound interest.

#### Objectives:

- Differentiate between simple interest and compound interest
- Solve compound interest problems using the compound interest formula.
- Solve compound interest problems using the compound interest tables.
- Solve present value problems using the present value tables.
- Solve problems involving daily and continuous compounding using the appropriate tables.
- Differentiate between the nominal and effective rate of interest.

### Demonstrate an understanding of annuities.

#### Objectives:

- Differentiate between an ordinary annuity and an annuity due.
- Solve problems involving ordinary annuities utilizing the appropriate table.

### Demonstrate an understanding of the median, mean, mode and range.

#### Objectives:

- Solve problems involving mean, median, mode and range.

### Demonstrate an understanding of the metric system.

#### Objectives:

- Describe the various metric units.
- Solve problems involving conversions between metric units of length, area, capacity, and weight.
- Solve problems converting between metric and English units.
- Solve problems involving conversions between Fahrenheit and Celsius temperature scales.