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Business Mathematics

Course Number: MTH 030
Transcript Title: Business Mathematics
Created: September 1, 2012
Updated: December 19, 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 (default), P-NP, audit

Prerequisites

MTH 20 and placement into RD 90

Course Description

Applies arithmetic to a variety of problems found in the business field, including simple and compound interest, annuities, payroll preparation, pricing, invoice preparation, trade discounts, taxes, and depreciation. Scientific calculator required. Prerequisites: MTH 20 and placement into RD 90. Audit available.

Intended Outcomes

  1. Demonstrate ability to reconcile a checking account and deposit credit card transactions.
  2. Demonstrate knowledge of payroll procedures to determine gross pay and payroll taxes.
  3. Show knowledge of the mathematics of buying including trade discounts and cash discounts.
  4. Show knowledge of the mathematics of selling including markup and markdown and inventory.
  5. Calculate simple interest, compound interest, and present value in appropriate applications.
  6. Solve annuity problems using tables, including future value, present value, and sinking funds.
  7. Apply depreciation methods to business assets.
  8. Prepare students for further course work in their major area of study.

Outcome Assessment Strategies

Assessment must include:

  1. At least two in-class examinations (one of which may be the final exam), no notes, no textbook.
  2. At least two of the following additional measures:
    1. Take-home examinations
    2. Graded homework/worksheets
    3. Quizzes
    4. Writing assignments
    5. Group/individual projects
    6. Attendance

Course Content (Themes, Concepts, Issues and Skills)

1.0 EQUATIONS AND PERCENTAGES

The instructional goal is to explore simple equations and percent problems.
1.1 Use order of operations in the solution of arithmetic application problems.
1.2 Identify unknowns in business oriented applications.
1.3 Solve equations for unknowns.
1.4 Apply proportions to rate, base, and percentage problems.

2.0 TRADE AND CASH DISCOUNTS

The instructional goal is to explore applications involving discounts.
2.1 Calculate trade discounts, single and series.
2.2 Calculate cash discounts.
2.3 Compare advantages of cash discounts and credit terms.

3.0 RETAIL PRICING

The instructional goal is to explore applications in retail sales: markup and markdown.
3.1 Use cost as the base in markup applications.
3.2 Use selling price as the base in markup applications.
3.3 Compare the two methods of calculating markup.
3.4 Calculate markdown, reduced price, and rate of markdown.

4.0 INTEREST AND PROMISSORY NOTES

The instructional goal is to explore simple and compound interest and promissory notes.
4.1 Solve simple interest application problems: principal, interest, rate, and time.
4.2 Solve compound interest application problems using:
4.2.1 compound interest tables.
4.2.2 compound interest formula.
4.3 Investigate bank discount and proceeds for a promissory note.

5.0 DEPRECIATION AND INVENTORY CONTROL

The instructional goal is to explore selected topics of depreciation and inventory control.
5.1 Solve depreciation problems with at least two methods:
5.1.1 Straight-Line.
5.1.2 Declining-Balance.
5.1.3 Sum-of-the-Years Digits.
5.1.4 Units-of-Production (ACRS).
5.1.5 MACRS
5.2 Solve inventory control problems with at least two methods:
5.2.1 Specific Identification.
5.2.2 Weighted Average.
5.2.3 LIFO.
5.2.4 FIFO.

6.0 WAGES, COMMISSIONS, PAYROLL DEDUCTIONS, BANKING SERVICES, AND TAXES

The instructional goal is to explore problems that apply to employee income, deductions, and taxes.
6.1 Calculate employee income from wages (hourly and/or piecework) and commissions.
6.2 Calculate deductions, taxes, FICA, and other special deductions that can occur.
6.3 Reconcile a checking account with a bank statement.

7.0 ANNUITIES

The instructional goal is to explore annuities, including future value, present value, and sinking funds.
7.1 Find the future value of an annuity or an annuity due using a table.
7.2 Find the present value of an annuity using a table.
7.3 Find the payment for a sinking fund using a table.

Department Notes

This course is intended to prepare students to use basic mathematics in solving monetary problems in business and personal finance.