Kaplan Masterclass

Basic Maths
Kaplan Masterclass
Basic Maths
Introduction
Symbols
Using your calculator
Order of operations
Rearranging equations
Ratios
Percentages
Simultaneous equations
2
Symbols
Using your calculator
Order of operations
Rearranging equations
Ratios
Percentages
Simultaneous equations
Symbols
= Sum of
^ = to the power of (e.g. 10
2
is 10^2)
= square root
= greater than or equal to
= less than or equal to
x = average of x
= Standard deviation
3
= Sum of
^ = to the power of (e.g. 10
2
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: x
2
- e.g. 4
2
=
- Raising to any power: x
y
or y
x
or ^ or x

- e.g. 5
4
=
- Square rooting: or
- e.g. 25 =
4
Find the following buttons
- Square: x
2
- e.g. 4
2
=
- Raising to any power: x
y
or y
x
or ^ or x

- e.g. 5
4
=
- Square rooting: or
- e.g. 25 =
Using your calculator
Find the following buttons
- Calculating any root:
x
or

- e.g.
4
81 =
- Log: Log
- e.g. Log 2 =
- Decimal to a fraction: S D
- e.g. 0.85 =
5
Find the following buttons
- Calculating any root:
x
or

- e.g.
4
81 =
- Log: Log
- e.g. Log 2 =
- Decimal to a fraction: S D
- e.g. 0.85 =
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
6
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. =
7
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
8
Brackets
Order (i.e. raising to the power of)
Divide or
Multiply,
Add or
Subtract
Order of operations illustration
e.g. 7 + (6 x 5
2
+3) = ?
9
Order of operations illustration
e.g.
IRR = L + NPV
L
x (H - L)
(NPV
L
NPV
H
)
Where L = 5, NPV
L
= 40,000, H = 10 & NPV
H
= 5,000,
what is the IRR?
10
e.g.
IRR = L + NPV
L
x (H - L)
(NPV
L
NPV
H
)
Where L = 5, NPV
L
= 40,000, H = 10 & NPV
H
= 5,000,
what is the IRR?
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
e.g.
PV = x x 1
(1 + i)
n
Where x = 10,000 and i = 10%, what is the value of PV?
Order of operations illustration
x y xy x
2
y
2
2 8 16 4 64
(|n_x
2
- (_x)
2
j |n_y
2
- (_y)
2
j)
n_xy - _x_y
=
i
2 8 16 4 64
3 11 33 9 121
4 14 56 16 196
9 33 105 29 381
x y xy x
2
y
2
Order of operation illustration
x = 9 y = 33 xy = 105 x
2
= 29 y
2
= 381
(|n_x
2
- (_x)
2
j |n_y
2
- (_y)
2
j)
n_xy - _x_y
=
i
x = 9 y = 33 xy = 105 x
2
= 29 y
2
= 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
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
Rearranging equations illustration
e.g.
P
0
= D
0
Dividend yield
Where P
0
= 20 million & D
0
= 1 million,
what is the dividend yield?
15
e.g.
P
0
= D
0
Dividend yield
Where P
0
= 20 million & D
0
= 1 million,
what is the dividend yield?
Rearranging equations illustration
e.g.
Y = a + bx
100,000 = a + 4 x 2,000
What is the value of a?
16
e.g.
Y = a + bx
100,000 = a + 4 x 2,000
What is the value of a?
Rearranging equations example
e.g.
Y = a + bx
5,000 = 100 + b x 50
What is the value of b?
17
e.g.
Y = a + bx
5,000 = 100 + b x 50
What is the value of b?
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
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
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
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
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
e.g.
5% =
15% =
One half of a percent =
125% =
3.894% =
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
e.g. 40,000 with a 3% increase?
e.g. 40,000 with a 23.75% increase?
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
e.g. 40,000 with a 30% decrease?
e.g. 40,000 with a 6.40% decrease?
Percentage changes formulae
Two ways of calculating percentage change:
New Old or New
Old 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
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
Mark ups formulae
Equation approach:
Sales = Cost x (1 + P%)
Format approach:
Sales 125%
Costs 100%
Profit 25%
34
Equation approach:
Sales = Cost x (1 + P%)
Format approach:
Sales 125%
Costs 100%
Profit 25%
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
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
Margins Formulae
Equation approach:
Sales = Cost
(1 - P%)
Format approach:
Sales 100%
Costs 75%
Profit 25 %
38
Equation approach:
Sales = Cost
(1 - P%)
Format approach:
Sales 100%
Costs 75%
Profit 25 %
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
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
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
e.g. Solve the following to find x and y.
5x + 2y = 18
6x + 3y = 24
How does it help?
Speed
Knowledge
Calculations
Made Simple
44
Confidence
Improved chance of success
Order of operations questions
e.g.
6 x (5 + 3) =
5 x 2
2
=
2 + 5 x 3 =
45
e.g.
6 x (5 + 3) =
5 x 2
2
=
2 + 5 x 3 =
Order of operations question
e.g.
y = ax
b
where b = log r
log 2
What is the value for y?
When a = 10
x = 4
r = 90%
46
e.g.
y = ax
b
where b = log r
log 2
What is the value for y?
When a = 10
x = 4
r = 90%
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
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)?
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
e.g. Solve the following to find x and y.
8x + 4y = 64
7x + 2y = 50