Business Math Demystified

409 Pages·2006·1.96 MB·english

by  Allan Bluman

BUSINESSMATH
DEMYSTIFIED
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BUSINESSMATH
DEMYSTIFIED
ALLAN G. BLUMAN
McGRAW-HILL
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DOI: 10.1036/0071464700
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CONTENTS
Preface xi
CHAPTER 1 Fractions—Review 1
Basic Concepts 1
Operations with Fractions 4
Operations with Mixed Numbers 7
Quiz 10
CHAPTER 2 Decimals—Review 17
Rounding Decimals 17
Addition of Decimals 19
Subtraction of Decimals 20
Multiplication of Decimals 20
Division of Decimals 21
Comparing Decimals 24
Changing Fractions to Decimals 25
Changing Decimals to Fractions 27
Quiz 29
CHAPTER 3 Percent—Review 32
Basic Concepts 32
Changing Percents to Decimals 32
Changing Decimals to Percents 34
Changing Fractions to Percents 36
Changing Percents to Fractions 38
Three Types of Percent Problems 39
v
CONTENTS
vi
Word Problems 43
Quiz 45
CHAPTER 4 Formulas—Review 49
Introduction 49
Exponents 50
Order of Operations 51
Formulas 55
Quiz 58
CHAPTER 5 Checking Accounts 61
Introduction 61
Recording the Transactions 61
Reconciling a Bank Statement 67
Summary 73
Quiz 73
CHAPTER 6 Payroll and Commission 76
Introduction 76
Yearly Salary 76
Hourly Wages 78
Piecework Wages 80
Commission 82
Payroll Deductions 85
Summary 87
Quiz 88
CHAPTER 7 Markup 91
Introduction 91
Markup on Cost 92
Markup on Selling Price 97
Relationships Between the Markups 103
Markdown and Shrinkage 106
Summary 113
Quiz 113
CHAPTER 8 Discounts 116
Introduction 116
CONTENTS
vii
Trade Discounts 117
Trade Discount Series 121
Cash Discounts 126
Discounts and Freight Terms 132
Summary 135
Quiz 136
CHAPTER 9 Simple Interest and Promissory Notes 138
Introduction 138
Simple Interest 139
Finding the Principal, Rate, and Time 145
Exact and Ordinary Time 149
Promissory Notes and Discounting 157
Summary 164
Quiz 164
CHAPTER 10 Compound Interest 167
Introduction 167
Compound Interest 167
Effective Rate 173
Present Value 175
Summary 179
Quiz 180
CHAPTER 11 Annuities and Sinking Funds 182
Introduction 182
Annuities 183
Sinking Funds 188
Summary 191
Quiz 192
CHAPTER 12 Consumer Credit 194
Introduction 194
Installment Loans 194
Annual Percentage Rate 198
Rule of 78s 202
Credit Cards 207
CONTENTS
viii
Summary 213
Quiz 214
CHAPTER 13 Mortgages 216
Introduction 216
Fixed-Rate Mortgage 217
Finding Monthly Payments 220
Amortization Schedule 224
Summary 228
Quiz 229
CHAPTER 14 Insurance 231
Introduction 231
Fire Insurance 231
Automobile Insurance 238
Life Insurance 240
Summary 243
Quiz 244
CHAPTER 15 Taxes 246
Introduction 246
Sales Tax 246
Property Tax 249
Income Tax 252
Summary 255
Quiz 255
CHAPTER 16 Stocks and Bonds 257
Introduction 257
Stocks 258
Bonds 265
Summary 269
Quiz 269
CHAPTER 17 Depreciation 272
Introduction 272
The Straight-Line Method 273