BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 1 Business and Personal Math Skills

APPLICATIONS OF BUSINESS MATHEMATICS Course Description This course is designed to give students expanded knowledge of mathematic applications for personal use and business applications. The curriculum for personal use applications includes financing costs and loan procedures, as well as major consumer expenses and earningsauto/housing/insurance/wages/benefits/banking/investing. The curriculum for business applications includes the cost of recruiting, hiring, training, maintaining employees; manufacturing/production costs; purchasing/selling/marketing costs; transportation/warehousing/inventory costs; and financial management and planning. The use of the calculator is integrated throughout the course and computer applications are introduced. Recommended for: All students Course length: Full year Credits: 1 (Mathematics Credit) Level: III Goals Provide students with the computation skills necessary to solve consumer and business problems Help students develop deductive and inductive thinking skills Strengthen students skills in problem solving Refine and enrich mathematics and business vocabularies Give students a global perspective of business Provide students with the opportunity to become proficient with the calculator Introduce computer applications Develop appreciation for the cost of doing business Use computers to perform computations for personal and business applications Competencies
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 2 Business and Personal Math Skills

Apply mathematics knowledge and skills to solve quantitative, spatial, and analytical problems through an understanding of basic mathematics functions Use mathematical skills and techniques to complete a variety of consumer-related and job-related tasks Work cooperatively with peers in problem solving Develop work habits reflecting organized task completion Apply mathematics skills in estimating and approximating answers to financial problems Demonstrate ability to verify information Appreciate the function of the calculator in problem solving Use business terms, forms, tasks, and technology in the study of business mathematics Demonstrate ability to use tables, graphs, charts, and other business-related statistical information Utilize spreadsheets for mathematic calculation and records Apply mathematics requirements to specific business operations Course Content I. Personal Business Mathematics Applications

A. Gross income 1. Hourly pay 2. Piecework 3. Commission 4. Fundamental processes strengthened a. Addition and subtraction b. Multiplication and division c. Fractions and decimals d. Percentages B. Net income 1. Income tax 2. FICA 3. Benefits
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 3 Business and Personal Math Skills

4. Fundamental processes strengthened a. Read tables b. Complete tax forms C. Checking and savings accounts 1. Check records and reconciliation 2. Savings records 3. Simple and compound interest 4. Earning interest through investment 5. Fundamental processes strengthened a. Determine balances b. Use bank forms D. Consumer purchases and loans 1. Cash purchases 2. Financed purchases 3. Types of personal loans 4. Fundamental processes strengthened a. Unit pricing b. Comparison c. Markdown d. Finance charge methods e. Read statements f. Annual percentage rate E. Major personal expenses and budgeting 1. Auto expensesdealers cost, purchasing/leasing/renting costs, operating and maintenance costs 2. Housing expensesclosing costs, mortgages, taxes, insurance, utilities 3. Insurance and investmentshealth and life insurance, CDs, stock, bonds, planning for retirement 4. Budgeting 5. Fundamental processes a. Use tables to compute premiums and interest b. Compute total cost per mile

c. Compute monthly payments d. Compute allocation of monthly payment toward principal and interest e. Compute assessed value and taxes on real estate f. Compute amount of insurance coverage and annual premiums (use tables) g. Compute total housing cost and compare with suggested guidelines h. Compute effective annual yield (annual dividend/interest) i. Compute average monthly expenditures j. Compare amount budgeted to actual expenditures
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 4 Business and Personal Math Skills

II. Business Application Mathematics A. Personnel 1. Cost of recruiting new employees 2. Administering wages, salaries, and employee benefits, payroll taxes 3. Calculating payroll using EXCEL 4. Cost of business travel expenses 5. Cost of employee training 6. Fundamental processes a. Compute rate of employee benefits based on annual gross pay b. Compute new salary after merit increases and cost-of-living adjustments c. Compute disability benefits under independent retirement systems and social security B. Production 1. Cost of manufacturing a product 2. Break-even analysis 3. Quality control 4. Time study 5. Fundamental processes a. Compute break-even point in number of manufactured units b. Compute percent of defective goods c. Use time and study results to compute number of units that can be produced and percent of time on task d. Compute dimensions of packaging containers C. Purchasing and selling 1. Discountstrade, chain, cash 2. Selling pricesmarkup/markdown 3. Net profit 4. Fundamental processes a. Compute net price b. Compute trade discount rate c. Compute cash price based on ordinary and EOM dating d. Compute selling price D. Marketing and services 1. Projected sales 2. Advertising costs 3. Pricing products

4. Cost of buildings, maintenance, equipment, and utilities 5. Consultants fees 6. Fundamental processes a. Compute rate of response to survey b. Compute annual sales potential of a product and market share c. Compute cost of advertisingnewspaper and television d. Compute selling price that will result in highest net profit
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 5 Business and Personal Math Skills

e. Compute rental and utility costs E. Warehousing and distribution 1. Storage space 2. Inventory 3. Transportation 4. Fundamental processes a. Compute total storage space b. Compute inventory value and cost of carrying inventory c. Compute shipping cost by truck F. Business accounting 1. Apportioning expenses 2. Depreciation 3. Complete financial statements 4. Vertical/horizontal analysis of financial statements 5. Fundamental processes a. Compute the percent of business expense to total expense b. Compute a departments share of total business expense c. Use depreciation methods d. Compute total assets, liabilities, and owners equity e. Compute cost of goods sold f. Compute ratios and percentage of change G. Financial management and planning 1. Corporate income taxes 2. Raising capitalissuing stocks and bonds and commercial loans 3. Growth expenses 4. Inflation 5. Gross Domestic Product/Consumer Price Index 6. Fundamental processes a. Compute taxable income and corporate income tax b. Compute selling expenses and net proceeds from an issue of stocks and bonds c. Compute net interest from commercial paper d. Compute total cost of expanding a business e. Compute the inflation rate and apply to pricing f. Compute consumer price index g. Compute real and per capita Gross Domestic Product h. Allocate revenue and expenses Instructional Methodologies Lecture/note taking

 Discussion Workbook exercises Spreadsheet exercises Vocabulary notebooks

BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 6 Business and Personal Math Skills

Government and business form preparation Simulation exercises Business reports Newspaper and magazine articles Cooperative learning Instructional Resources (Students) TextMathematics With Business Applications, 3rd Edition, Glencoe, 1993 Workbook for Mathematics With Business Applications Business Math Using Excel, South-Western Thomson Learning, 2005 Federal and state income tax publications Assorted business forms Spreadsheet software (Microsoft EXCEL) Teacher Resources Instructors Edition of Mathematics With Business Applications, 3rd Edition, Glencoe, 1993 Instructors Edition of Workbook for Mathematics With Business Applications Instructors Edition of Business Math Using Excel, South-Western Thomson Learning, 2005 Federal and state income tax publications Curriculum Map Term I Personal Applicationsgross pay and net income Federal and state income taxes FICA taxes and Medicare Other deductions Benefits Checking accounts and bank reconciliation Interestsimple and compound Earning interest through investment Term II Personal Applicationsconsumer purchases and loans Cash purchasesunit pricing, sales taxes, markdowns, savings through cash purchases Financing purchasesannual percentage rate, financing methods Personal loansfinancing methods
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 7 Business and Personal Math Skills

Housing expensesrenting, mortgages, closing costs, insurance, utilities, real estate taxes Auto expensespurchasing, excise taxes, financing, insurance, leasing, maintenance costs Life and health insurance InvestmentsCDs, stocks, bonds, planning for retirement Budgeting

Term III Business Applicationscosts of personnel Recruiting costs Wages, salaries, employee benefits, payroll taxes Calculating payroll using EXCEL Business travel expenses Employee training costs Business ApplicationsProduction Manufacturing costs Break-even analysis Quality control Time study Business ApplicationsPurchasing and Selling Discountstrade, chain, cash Markup and markdown Net profit Business ApplicationsMarketing Projected sales Advertising costs Pricing products Cost of buildings, maintenance, equipment, utilities Consultation fees Term IV Business ApplicationsWarehousing and Distribution Storage space Inventory Transportation Business ApplicationsAccounting Apportioning expenses Depreciation Financial statements Analysis of financial statements Business ApplicationsManagement and Planning Corporate taxes
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 8 Business and Personal Math Skills

Raising capitalcommercial loans, issuing stocks and bonds Growth expenses Inflation Gross Domestic Product/Consumer Price Index Technology Resources Calculator Computer overhead projection system for demonstrations Computer laboratory classroom with Internet access Computer applicationEXCEL software (spreadsheets) Methods of Assessment Teacher-prepared and standardized tests/quizzes

 Spreadsheet exercises Worksheet exercises Class work Homework Math and business vocabulary and notes Business projects Class participation Rubrics Midterm and final examinations Academic SupportEnrichment Topics and Activities Technology Projects Sales commission spreadsheet Job benefits spreadsheet Interest earned on savings accounts spreadsheet Bank reconciliation spreadsheet Average daily balance finance charge spreadsheet Cash advance finance charge spreadsheet Rent or buy template spreadsheet Sales receipt and sales tax calculator spreadsheet Mortgage payments spreadsheet Insurance loss payment spreadsheet Global Awareness/Global Economy
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 9 Business and Personal Math Skills

Consumer participation in a worldwide economy Exposure to economic and business differences in other countries Understanding an application of the metric system Converting currency Impact of technology Massachusetts Technology Literacy Standards and Expectations Supporting Integration of Technology in the Course Content (2008) Basic Operations G9-12: 1.6 Demonstrate keyboarding techniques, including the use of keyboard shortcuts, to complete assignments efficiently and accurately. (numeric keypad) Spreadsheet G9-12: 1.18 Define and use functions of a spreadsheet application (e.g., sort, filter, find). G9-12: 1.19 Enter formulas and functions; use the auto-fill feature in a spreadsheet application. G9-12: 1.20 Explain and use advanced formatting features of a spreadsheet application (e.g., reposition columns and rows, add and name worksheets). G9-12: 1.21 Differentiate between formulas with absolute and relative cell references. Ethics G9-12: 2.1 Demonstrate compliance with the schools Acceptable Use Policy. G9-12: 2.2 Explain issues related to the responsible use of technology (e.g., privacy, security). G9-12: 2.3 Explain laws restricting the use of copyrighted materials. G9-12: 2.5 Write correct in-text citations and reference lists for text and images

gathered from electronic sources. Society G9-12: 2.8 Design and implement a personal learning plan that includes the use of technology to support lifelong learning goals. G9-12: 2.9 Evaluate the authenticity, accuracy, appropriateness, and bias of electronic resources, including Web sites. Research G9-12: 3.1 Devise and demonstrate strategies for efficiently collecting and organizing information from electronic sources. G9-12: 3.2 Compare, evaluate, and select appropriate electronic resources to locate specific information. G9-12: 3.3 Select the most appropriate search engines and directories for specific research tasks.
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 10 Business and Personal Math Skills

Problem Solving G9-12: 3.5 Explain and demonstrate how specialized technology tools can be used for problem solving, decision making, and creativity in all subject areas. School-to-Career Skills Reflected in the Course Competencies (*Reflect SCANS SkillsThe Secretarys Commission on Achieving Necessary Skills, U.S. Dept. of Labor) Oral and written communication* Listening effectively* Computer literacy/skills* Decision making* Creative thinking* Critical thinking Problem solving* Transfer learning strategies* Organizing* Math skills* Manages money* Apply information to problems and tasks* Analyze/interpret information and tasks* Self-management* Visioning an end result* Understand systems* Preparation for internships, education after high school, and employment AHS School-Wide Academic Expectations Reflected in the Course Competencies Students will demonstrate satisfactory achievement in the standards-based curriculum at Agawam High School Students will communicate effectively through listening Students will communicate effectively through reading Students will communicate effectively through speaking Students will communicate effectively through writing Students will use scientific and mathematical processes to interpret and evaluate information and solve problems across the curriculum

 Students will develop proficiency in information and communication technology literacy skills and will use appropriate tools to identify and solve problems across the curriculum Students will participate in activities to foster individual interest and fulfill individual potential
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 11 Business and Personal Math Skills

Students will become knowledgeable of the changing employment market and acquire skills for career exploration Massachusetts Common Core of Learning Elements Reflected in the Course Competencies Read, write, and communicate effectively Use mathematics, the arts, computers, and other technologies effectively Define, analyze, and solve complex problems Acquire, integrate, and apply essential knowledge Study and work effectively Demonstrate personal, social, and civic responsibility Applications of Mathematics and Computation Reflected in the Course Competencies Massachusetts Mathematics Curriculum Framework Learning Standards National Standards for Business Education Performance StandardsComputation (2007) Understand numbers, ways of representing numbers, relationships among numbers, and number systems Understand meanings of operations and how they relate to each other Apply appropriate techniques, tools, and formulas to determine measurements Compute fluently and make reasonable estimates Select and use appropriate statistical methods to analyze data Develop and evaluate inferences and predictions that are based on data Apply mathematical operations to solve problems Solve problems involving whole numbers, decimals, fractions, percents, ratios, averages, and proportion Apply the order of operations principle when using mathematical processes Solve for the unknown variable in an equation Use common international standards of measurement when solving problems Construct, read, ant interpret tables, charts, and graphs Compare calculated result with estimated result to determine reasonableness of a solution Massachusetts Career/Vocational Technical Education Curriculum Frameworks Business and Consumer Services ClusterOffice Technology Technical Knowledge and Skills 2.N Define and demonstrate the fundamental functions of a spreadsheet.
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 12 Business and Personal Math Skills

Define spreadsheet terminology Identify and locate cells, columns, and rows Format cells, rows, and columns Enter, edit, and sort data

Create, edit, and save a worksheet Perform basic functions such as average, sum, count, min/max 2.O Format a spreadsheet Format and align data, columns, and rows Apply predefined styles Paste formulas, values, formats, and links 2.P Demonstrate how to use formulas, functions, printing features of a spreadsheet Create copy, edit, and apply a formula Calculate absolute and relative references Preview and print selections, worksheets, and workbooks 2.X Explain fundamental financial concepts and applications. Compare and contrast the services offered by a bank, credit union, mortgage company, and loan company. Describe income, sales, property, and excise tax. Explain the forms and purposes of life, property, health, and auto insurance. Track the performance of a currently traded stock. Explain the function of a credit bureau. Calculate the cost of a mortgage, car loan, and personal loan. Open, maintain, and reconcile a personal checking account. Research the benefits of a savings account, money market, certificate of deposit, U.S. Savings Bond and mutual fund. Calculate the cost of a credit card or installment plan purchase. Prepare a personal budget. Compare and contrast the benefits of leasing vs. buying. National Standards for Business Education Performance Standards Reflected in the Course Competencies (2007) Computation Determine the correct mathematical process to use for various problem situations and use formulas when appropriate Select and use appropriate tools when solving problems (e.g., paper and pencil, manipulatives, hand-held calculators, web calculators, computer numerical keypads, spreadsheets, and personal desktop assistants) Define and use appropriate mathematical symbols for given problems Round numbers for estimation and other purposes Estimate and then calculate answers to problems using addition, subtraction, multiplication, and division
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 13 Business and Personal Math Skills

Compare calculated result with estimated result to determine the reasonableness of a solution Explain relationships between mathematical processes Communicate understanding of problems through oral and written means Number Relationships and Operations Solve problems that involve whole numbers, decimals, and fractions and use appropriate conversions (e.g., fractions to decimals or decimals to fractions) when necessary Solve problems that involve percents, ratios, averages, and proportions and use

appropriate conversions (e.g., decimals to percents, percents to decimals, or ratios to percents) when necessary Measurements Identify standard U.S. units of measurement and show relationships (e.g., length, volume, and weight) Calculate units of time and show relationships (e.g., days to months, elapsed time, or interest conversion periods) Statistics and Probability Construct, read, and interpret tables, charts, and graphs Estimate and calculate measures of central tendency (mean, median, mode) Problem-Solving Applications Compute personal federal and state income taxes Using the simple interest equation (I=PRT), solve for one of the variables and find maturity value, maturity date, and days between dates Calculate due date, interest, and maturity value of a simple interest note when the term of the loan is in months, days, or years Compute compound interest and the resulting compound amount at the maturity date for savings and investments Calculate penalties for early withdrawal from a certificate of deposit Calculate gross earnings (e.g., salary, hourly rate, commission, per diem, tips, or production) Calculate payroll withholdings, Social Security and Medicare deductions, other deductions, and net earnings Maintain payroll register and individual earnings record Complete check records (e.g., check register and deposit slips) Calculate income and expenses for a given time period Calculate fixed and variable costs, analyze data, and estimate the projected total income and total expenses for a given time period Prepare a budget Calculate a credit card balance and finance charge using the unpaid balance method or average-daily balance method Calculate the outstanding amount for installment purchases Calculate finance/additional charges, periodic payment, total cost, and APR on an installment contract
BUSINESS EDUCATIONEDUCATION FOR LIFE Applications of Mathematics 14 Business and Personal Math Skills

Compare cash price to installment price in order to make a purchasing decision Calculate periodic payment, interest, and total amount required to pay to amortize a loan (e.g., mortgage) Calculate finance charges on credit card balances and cash advances Calculate a down payment, closing costs, and mortgage loan amount Calculate the savings from refinancing a mortgage Use calculators on the Internet to solve problems pertaining to installment loans, mortgages, mortgage refinancing, and loan prepayment Calculate present value of a simple interest loan Calculate the total purchase price given the number of units and unit price Compare the cost of renting, leasing, and buying equipment

 Compare the costs of buying and maintaining a new and used car versus leasing and maintaining a new and used car Calculate the total sales and the sales tax for a sales transaction