Business Mathematics

What you'll learn

• Apply order of operations, rounding, fractions, ratios, proportions and unit rates to business problems such as allocations and currency conversion.
• Calculate percentages, percentage change, successive changes, compound annual growth rates and weighted percentages, and distinguish percentage points from per cent.
• Calculate gross pay, overtime, CPP, EI and income tax deductions, net pay and the employer's payroll cost using current Canadian rates.
• Calculate GST, HST, PST and QST, trade and chain discounts, cash discounts and partial payments, and the cost of forgoing a cash discount.
• Set prices using markup on cost and on selling price, convert between them, and analyze markdowns, break-even prices and realized margins.
• Calculate simple interest, maturity and present values, equivalent payments, line-of-credit interest and treasury bill yields.
• Calculate compound future and present values, effective and equivalent rates, unknown rates and terms, and real returns after inflation.
• Value ordinary, due, general, deferred and perpetual annuities and solve for payments and terms by formula and spreadsheet function.
• Calculate loan and mortgage payments, build amortization schedules, find balances at renewal and compare prepayment and amortization options under Canadian rules.
• Evaluate investments with net present value, internal rate of return, payback and the profitability index, and price bonds from their yield.
• Use cost-volume-profit analysis to find break-even points, target-profit volumes, margins of safety, operating leverage and sales-mix break-even.
• Summarize business data with descriptive statistics, moving averages and price indexes, build reliable spreadsheets and combine the course's methods in a small-business analysis.