Kaplan Masterclass

Basic Maths

Introduction

Symbols Using your calculator Order of operations Rearranging equations Ratios Percentages Simultaneous equations

Symbols

= Sum of ^ = to the power of (e.g. 102 is 10^2) = square root = greater than or equal to = less than or equal to x = average of x = Standard deviation

Using your calculator

Find the following buttons

- Square: x2 - e.g. 42 = - Raising to any power: xy or yx or ^ or x - e.g. 54 = - Square rooting: or - e.g. 25 =

Using your calculator

Find the following buttons

- Calculating any root: x - e.g. 481 = - Log: Log - e.g. Log 2 = - Decimal to a fraction: S D - e.g. 0.85 = or

Using your calculator cont.

Functions to speed up calculations

- Bringing up the last answer: Ans - Storing a number: STO - Recalling a number: RCL - Amending a number: TRY TO AVOID RETYPING IN A NUMBER UNLESS UNAVOIDABLE

Rounding example

e.g.
- To the nearest thousand - e.g. 123,456 to the nearest thousand = - e.g. 987,654 to the nearest thousand = - To a specific number of decimal places - e.g. 3.14159265 (pi) to 2d.p. = - e.g. 3.14159265 (pi) to 4d.p. =

Order of operations rules

Brackets Order (i.e. raising to the power of) Divide or Multiply, Add or Subtract

Order of operations illustration

e.g. 7 + (6 x 52 +3) = ?

Order of operations illustration

e.g. IRR = L + NPVL x (H - L) (NPVL NPVH)

Where L = 5, NPVL = 40,000, H = 10 & NPVH = 5,000, what is the IRR?

10

Order of operations example

e.g. PV = x x 1 (1 + i)n

Where x = 10,000 and i = 10%, what is the value of PV?

11

Order of operations illustration

r =
x 2 3 4 9 x y 8 11 14 33 y

nxy xy ([nx2 (x)2 ] [ny2 (y)2 ])

xy 16 33 56 105 xy x2 4 9 16 29 x2 y2 64 121 196 381 y2

Order of operation illustration

r = nxy xy ([nx2 (x)2 ] [ny2 (y)2 ])

x = 9 y = 33 xy = 105 x2 = 29 y2 = 381

Rearranging equations rules

Write out the equation (from a formula sheet or from memory) Replace any letters with numbers that are given in the information When rearranging, you must do the same thing to both sides of the equation

14

Rearranging equations illustration

e.g. P0 =

D0 Dividend yield

Where P0 = 20 million & D0 = 1 million, what is the dividend yield?

15

Rearranging equations illustration

e.g. Y = a + bx 100,000 = a + 4 x 2,000 What is the value of a?

16

Rearranging equations example

e.g. Y = a + bx 5,000 = 100 + b x 50 What is the value of b?

17

Ratios

A ratio is an expression that compares quantities relative to each other Ratios are given in the format a:b:c A ratio can be used to show how something is to be spit

18

Ratio illustration

e.g. a partnership of 3 partners have an agreement to share profits of 14,000 in the proportions 1:2:4. How much will each of the partners get?

19

Ratio example

e.g. how much would each shareholder get if the profits were 250,000 and they were to be split 2:3?

20

Percentages

A percentage is a way of expressing a number as a fraction of 100 Per cent (%) = per hundred 45% = 45 / 100 = 0.45 To convert fraction/decimal to a % multiply by 100 To convert % to a fraction or decimal divide by 100

21

Percentages quickly

The quick way

- DONT use the % button on the calculator - INSTEAD convert the % given into a decimal by moving the decimal 2 places to the left then use that number in the calculator - Dont waste time writing down separate numbers

22

Percentages quickly example

e.g. 5% = 15% = One half of a percent = 125% = 3.894% =

23

Percentages quickly illustration

e.g. A sales value of 150,000 will increase by 5% next year to what?

24

Percentages quickly example

e.g. 40,000 with a 3% increase?

e.g. 40,000 with a 23.75% increase?

25

Percentages quickly example

e.g. A sales value of 150,000 will decrease by 10% next year to what?

26

Percentages quickly example

e.g. 40,000 with a 30% decrease?

e.g. 40,000 with a 6.40% decrease?

27

Percentage changes formulae

Two ways of calculating percentage change: New Old Old or New Old

28

Percentage changes illustration

e.g. What is the percentage change if sales moved from 5m to 8m?

29

Percentage changes examples

e.g. What is the percentage change if sales moved from 12m to 15m?

30

Percentage changes illustration

e.g. What is the percentage change if sales moved from 8m to 5m?

31

Percentage changes examples

e.g. What is the percentage change if sales moved from 20m to 18m?

32

Mark ups

A mark up is where the profit is expressed as a percentage of the cost e.g. a 25% mark up on 100 cost would mean a profit of 25

33

Mark ups formulae

Equation approach: Sales = Cost x (1 + P%) Format approach: Sales 125% Costs 100% Profit 25%

34

Mark up example

e.g. calculate the sales price for a product with a 30% mark up that costs 40.

35

Mark up example

e.g. calculate the profit for a product with a 20% mark up and a sale value of 90.

36

Margin

A margin is where the profit is expressed as a percentage of the sales price e.g. a 25% margin on 100 sales price would mean a profit of 25

37

Margins Formulae

Equation approach: Sales = Cost (1 - P%) Format approach: Sales 100% Costs 75% Profit 25 %

38

Margin example

e.g. calculate the sales price for a product with a 30% margin that costs 42.

39

Margin example

e.g. calculate the profit for a product with a 20% margin and a sale value of 90.

40

Simultaneous equations rules

Two linear equations both containing unknown values of x and y
Step 1: Multiply one or both equations so that the number of either xs or ys is equal Step 2: Subtract one equation from the other to remove either the xs or the ys Step 3: Rearrange the resulting equation to find the value of either x or y Step 4: Substitute the value calculated in step 3 into one of the original equations

41

Simultaneous equations illustration

e.g. Solve the following to find x and y. 5x + 2y = 34 x + 3y = 25

42

Simultaneous equations illustration

e.g. Solve the following to find x and y.

5x + 2y = 18 6x + 3y = 24

43

How does it help?

Speed
Calculations Made Simple

Knowledge

Confidence Improved chance of success

44

Order of operations questions

e.g. 6 x (5 + 3) = 5 x 22 = 2+5x3=

45

Order of operations question

e.g. y = axb where

b = log r log 2

What is the value for y? When a = 10 x=4 r = 90%

46

Rearranging equations question

F = O(1+g)n e.g. What is the growth rate (g) if the original figure is 10,000 (O), the final figure is 13,310 (F), and the number of years of growth is 3 (n)?

47

Ratio question

e.g. how much would each shareholder get if the profits were 360,000 and they were to be split 2:3:4?

48

Simultaneous equations question

e.g. Solve the following to find x and y.

8x + 4y = 64 7x + 2y = 50

49