# Applied Business Math

**Course Number: **BA 104

**Transcript Title: **Applied Business Math

**Created: **May 12, 2014

**Updated: **August 20, 2014

**Total Credits: **
4

**Lecture Hours: **40

**Lecture / Lab Hours: **0

**Lab Hours: **0

**Satisfies Cultural Literacy requirement: **
No

**Satisfies General Education requirement: **
No

**Grading options: **
A-F, audit

#### Prerequisites

##### WR 115, RD 115, MTH 20 or equivalent placement test scores

## Course Description

Presents a variety of problems and situations found in business where arithmetic is constantly used. Prepares students to use mathematics in solving monetary and valuation problems in business and personal finance. Prerequisites: WR 115, RD 115, and MTH 20 or equivalent placement test scores. Audit available.

## Intended Outcomes

Upon successful completion of this course, students will be able to:

- Express and manipulate numbers effectively to solve business problems.
- Compute trade and cash discounts using whole numbers, fractions and decimals.
- Determine accurate inventory values and corresponding accounting valuations using different valuation methods.
- Calculate simple interest, compound interest and present values using appropriate applications methods to professional standards.
- Create reliable depreciation of asset values using various accounting methods.
- Use the appropriate statistical terms, summarize and clarify business data.

## Outcome Assessment Strategies

- Attendance
- Class participation
- Group projects
- Portfolio(s)
- Homework assignment(s)
- Written paper(s)
- Quiz (zes)
- Take-home examinations
- Exam(s)

## Course Activities and Design

This course will be presented through lecture, demonstration, discussion, and or participation type sessions.

## Course Content (Themes, Concepts, Issues and Skills)

#### Themes:

- Number sense
- Problem solving
- Business applications, formulas, and modeling
- Alternative solutions and analysis
- Critical thinking
- Effective communication

#### Concepts, Issues, and Skills:

- Solve business story problems
- Read, write, and round whole numbers
- Add, subtract, multiple, divide, and use exponents in their proper sequences
- Identify, convert, reduce, and raise fractions
- Add, subtract, multiply, and divide fractions
- Read, add, subtract, multiply, divide, and reduce decimals and then convert to fractions
- Solve equations using addition, subtraction, multiplication, and division
- Find increases and decreases in amounts and percentages in common problems
- Find the mean, median, mode, and ranges using non-business and business data
- Solve single and series trade discount problems
- Find and solve cash discount and net amounts using ordinary dating terms
- Find and compute markups based upon cost, selling price or percentages of cost or selling price
- Compute markdowns, reduced prices, desired profits on perishable and seasonal goods
- Compute gross payroll for various types of compensation methods
- Tabulate payroll tax withholdings and next pay based upon social security and Medicare tax laws
- Compute employer’s Federal Unemployment Taxes and State Unemployment Taxes
- Find simple interest
- Find the maturity value and maturity date of a loan
- Find the principal, rate, or time using the simple interest formula
- Determine exact time, interest rate, and actuarial interest costs
- Calculate the partial payment benefit amount before the maturity due date
- Fine the true or effective interest rate of a simple discounted note
- Find the future value and compound interest by compounding manually and by using a table
- Find the interest amount compounded using a table
- Find the present value based on annual compounding with and without a table
- Find the future value of an ordinary annuity
- Find the present value of an ordinary annuity
- Compute simple Bond valuations
- Determine the rates and calculate the monthly or quarterly payments of a mortgage
- Prepare a partial amortization schedule of a mortgage
- Using the Specific Identification, Weighted-Average, FIFO, and LIFO methods determine ending inventory values and the corresponding Cost OF Goods Sold amounts
- Depreciate assets using the Straight-Line, Units-of Production/Output, and the Declining Balance methods
- Depreciate an asset using the Modified-Accelerated-Cost-Recovery-System (MACRS) per the tax code
- Determine the sales tax and excise tax amounts and total selling prices
- Calculate property tax amounts using tax rates
- Prepare vertical analysis and horizontal analysis of a Balance Sheet
- Prepare vertical analysis and horizontal analysis of an Income Statement

## Department Notes

Emphasis on business topics and areas where the situation involves using arithmetic to solve business problems or function efficiently. Business applications topics include markups and markdowns, trade and cash discounts, gross and net payroll and payroll taxes, simple interest, present value and future value, concepts and applications of annuities and sinking funds, various inventory valuations, applying different depreciation methods to business assets, mortgages balances and methodologies, and computations using statistical functions.