Chapter 1

Numeration

Chapter 1: Numeration 1.1 Place Value for Numbers Arithmetic Arithmetic is a basic tool in the study of Business Mathematics. The extent of practical applications whether social or business, make use of the arithmetical operations such as addition, subtraction, multiplication and division. Suggested Steps in Solving Problems 1. Read very carefully the problems until the conditions are clear. 2. Determine the given and set what is to be found. 3. Form the relationship between the given and the required 4. Decide what process or processes to use. If a problem involves a series of steps, decide what process applied first. 5. Use formulas connecting the known quantities with the unknown quantities. 6. Also, if possible, try to give an estimate of the possible answer.

7. Solve the problem in accordance with the process involved. The most important is to be careful in every aspect of computations. A simple error will make all computations collapsed. 8. Check the solutions with the condition of the problem.

Number and Numeral

A number is one or more units or things. A number that denotes one or more whole units is a whole number or an integer. A number that denotes a part of portion of a unit is called a fraction. A mixed number is a combination of a whole number and a fraction. A number proceeded by a decimal point and whose value is less than one unit is called a decimal. Combination of a whole number and a decimal is a mixed decimal. A decimal fraction or decimal is another way or representing a fraction whose denominator is in the powers of 10. For example the fraction 7/10 represents 0.7 in decimal. A complex decimal is a number consisting of a decimal or mixed decimal and a fraction. Examples are 0.33 1/3 and 0.66 2/3. A numeral is a symbol that stands for a number while a number is the idea. We can see a numeral but we cant see a number.

Numeration System A system of reading and writing numbers is a numeration system. This consists of symbols and rules or principles on how to use these symbols. Our system of reading and writing numbers is the decimal system or the hindu-arabic system. Ten digits are used -0,1,2,3,4,5,6,7,8 and 9. this system is based on groups of tens. It uses the place value concept. Simple and Relative Values The value represented by a figure depends on its position in relation to other figures. The simple value of a figure is the value it has when it stand alone. For example, 3 when it stands alone has a value that is one greater than 2, or one less than 4. if 2 is placed to the right of 3 making it 32, figure 2 has a new value. It is ten times 3 or 3 tens. The new value that is given to it by placing another figure to the right of it is called its relative value. Place value The place value of digit determines its value and each place has a value of ten times as that of the place to the right. Let us take a look at the place value chart. The digit 5 on the chart has a value that changes with its position or place. Its first value is 5 units or ones. Its second value is 5 hundred thousands and its third value is five billions.

Place value chart for whole numbers

Periods

Quadrillion

Trillions

Billions

Millions

Thousands

Units

Place Names

Digits

9,

5,

1,

8,

Rounding off Numbers Rounding off numbers is sometimes convenient to adopt for simple forms of the numbers rather than taking the exact values. The rounding off numbers is frequently used in business to facilitate computations. For instance, a store sale of P4,992.75 in a day may give a rounded figure of P5,000 for a better understanding and fast look of the sale. Guidelines to be followed in rounding off numbers 1. When portion to be dropped begins with 0,1,2,3,4 or a digit less than 5, the last digit to be retained is unchanged. Example: 34,214.4184 34,214 rounded off to the nearest ones 34,210 rounded off to the nearest tens

34,200 rounded off to the nearest hundreds

2. The digits dropped in the whole number are replaced by zero or zeros. Using the examples above.

Examples: 34,214.018 34,210 rounded off to the nearest tens 34,200 rounded off to the nearest hundreds 34,000 rounded off to the nearest thousands 3. When portion to be dropped begins with 6,7,8,9, the last digit to be retained is increased by 1. Example: 8,579.251 8,579 rounded off to the nearest ones

8,580
8,600

rounded off to the nearest tens

rounded off to the nearest hundreds

4. When the portion to be dropped is 5, and the preceding digit is: a. even, retain the preceding digit; b. odd, increase the preceding digit by 1. Examples: 8,575 8,580 8,000 rounded off to the nearest tens rounded off to the nearest thousands.

Chapter 2

Fundamental Operations on
Whole Numbers & Decimals

Short Cuts in Multiplication 1. When a number is multiplied by 10 or a multiple of 10, move the decimal point of the given number to as many places to the right as there are many zeros in the multiples of 10. Examples: 42.25 x 1,000 = 43,250

2. A number ending in 5 when multiplied by itself will have 25 as the two extreme right digits in the product. The remaining digit/s will be multiplied by one greater than itself. Examples: 25 x 25 = (2 x 3) then 25 = 625 75 x 75 = (7 x 8) then 25 = 5625 3. Two numbers whose ending digits make a sum of 10 and whose remaining digits are the same, the ending digits will be multiplied and the remaining digits will also be multiplied by one greater than itself. Examples: 64 x 66 = (6 x 7) then (4 x 6) = 4224 71 x 79 = (7 x 8) then (1 x 9) = 5609

4. In multiplying a number by 9,99,999, move the decimal point as many nines in the multiplier, then subtract the multiplicand from the result. Examples: 23.25 x 999=23250 23.25 = 23226.75 865 x 99= 86500 865= 85635 5. In multiplying a number by 11, 101, 1001, , multiplying the number by 10, 100, 1000, , then, add the multiplicand to the result. Examples: 753 x 101= 75300 + 753= 76053 7.563 x 101=753 + 7.53= 760.53 6. In multiplying a number by 5, multiply the number 10 and divide it by 2 since 5 is of 10.

Examples:

329 x 5=3290 / 2= 1645

3.9 x 5=39 / 2=19.5

7. In multiplying a number by 25, multiply the number by 100 and divide it by 4 since 25 is 1/4 of 100.

Examples:

618 x 25= 61800 / 4= 15450

9.7 x 25=970 / 4= 242.5

8. In multiplying a number by 50, multiply the number by 100 and divide it by 2 since 50 is 1/2 of 100. Examples: 7761 x 50=776100 / 2=388050 4.26 x 50=426 / 2=213 9. In multiplying a number by 0.1, 0.01, 0.001, , move the decimal point in the multiplicand to the left as many places as there are decimal places in the multiplier. Examples: 3742 x 0.1=374.2 35.9 x 0.01= 0.359

10. When either the multiplicand or the multiplier ends in zero, bring down the zeros into the product and continue to multiply by the next digit to the left.
Examples: x 3370 420 674 1348 1415400

Basic Operations in Business This section aims to: 1. analyze and solve problems involving addition; and 2. appreciate the role of Mathematics as a tool for solving problems. Simple Average To get the simple average, we get the sum of all the given values or items and divide the sum by the number of values.

Weighted Average
To get the weighted average, we multiply the quantities by the measures involved. Then, we divide the sum of the products by the sum of the quantities. Profit and Loss

This section aims to:

1.differentiate average for the simple averages and define profit and loss; 2. solve business problems and problems and bank reconciliation involving profit, loss and averages.

Profit and Loss

Profit is the amount by which the sales are greater than the cost of goods sold and the operating expenses. Margin also means gain or profit.
The formulas in computing profit are as follows; Net Sales = Gross Sales Refunds and Allowances

Net Profit = Gross Profit Operating Expenses

The net sales and profit may also be given in scheme diagram as follows: Gross Sales

- Sales Returns and Allowances

Net Sales - Costs of Goods Sold Gross Profit - Operating Expenses Net Profit

1. Gross Sales is the actual amount received for selling the goods.

2. Refunds are amounts returned usually if goods are defective.

3. Net sales are obtained when refunds are being deducted from the gross sales. 4. Costs of goods sold or buying price is the amount paid for articles bought including the buying expenses. To compute for the cost of goods sold for a period of time, we have the formula as follows: Available Goods = Beginning Inventory + Purchases

Costs of Goods Sold = Available Goods Ending Inventory

The above may be diagrammed as follows: Beginning Inventory + Purchases Goods For Sale - Ending Inventory Costs of Goods Sold

5. Inventory is an itemized lists of goods on hand.

6. Gross Profit is the difference between the net sales and the cost of goods sold.
7. Operating expenses or overhead are selling expenses such as salaries or wages, traveling expenses, rentals, water, electric bills, commissions, taxes.

8. Net Profit is the amount obtained when all the selling expenses or other cost of doing business are deducted from the gross profit.
In case the sales are less than the cost of goods sold, there is a loss. The formulas in computing losses are as follows: Gross Loss = Costs of Goods Sold Net Sales Net Loss = Gross Loss + Operating Expenses The relationship of the terms of loss may be diagrammed schematically as follows: Cost of Goods Sold - Net Sales Gross Loss

+ Operating Expenses
Net Loss

Bank Reconciliation Bank Reconciliation is the process of bringing the bank's monthly report for each depositor showing deposits made, check written, cancelled checks, and service charges. Checkbook contains checks and check stubs. The checks are filled out by the depositors made, and of charges made by the bank. Reconciliation statement putting an agreement the bank statement balance and the checkbook balance. The differences in the balances may be due to: 1. Outstanding checks. These are checks issued by the depositor but have not yet been presented to the bank for payment. 2. Deposits in transit. These are deposits made but late to be included in the monthly bank statement. 3. Service charges. 4. Errors in the check stub entries. 5. Cancelled checks. These are checks that have been paid by the bank.

Depreciation Schedule this section aims to: 1. relate the total and average years in depreciation in the preparation of depreciation schedule; and

2. construct the depreciation schedule.

Depreciation is the lost in value of physical assets through its use. The yearly deposits into the depreciation fund are called depreciation charges. The depreciation fund is the portions of a given amount at the end of its useful life or the difference between the original cost of the asset and the sum in the depreciation fund is called the book value of the asset. At the end of the year.

Chapter 3

Fractions

Chapter 3: FRACTIONS

FRACTION is one or more of the equal parts into w/c a whole is divided. Terms: numerator & denominator. Numerator- number above the line, showing how many of the equal parts are expressed or taken.

Denominator- number below the line, showing into how many equal parts the whole is divided.
vinculum- divided by

- line between numerator & denominator

Ex: 3 (numerator) 4 (denominator)

Kinds of Fractions
Proper Fractions- numerator is less than the denominator. - Value is less than 1. Ex: 2/7, 6/9 Improper Fractions- numerator is equal to or greater than the denominator Ex: 3/3, 7/2 Mixed Number- whole number & fraction Ex: 5 6/7, 10 7/7 Similar Fractions- same denominators Ex: 2/9, 5/9, 12/9

Dissimilar/ Unlike Fractions- different denominators Ex: , 5/3, 5/7 Decimal Fractions- decimal pt. is used to indicate that the denominator is a power of 10. Ex: 0.3= 3/10 Other terms LCD- two numbers is the smallest number w/c is exactly divisible by the denominators of the dissimilar fractions. Ex: LCD of 2/5 and 1/2 LCD of 2 & 5 (10) ; 12.25= 12 25/100

GCF- betwn. 2 numbers is the highest or biggest number w/c can be used as a common divisor of the numerator & denominator of a fraction. Ex: GCF of 12 & 24 in the fraction 12/24. GCF of 180 and 168 = 12

Lowest-term of a fraction- numerator & denominator have no common factors except 1.

Ex: 2/5, 11/13, 15/7

Reciprocal of a Fraction- quotient of 1 divided by the given number. Ex: Reciprocal of 2/5 = 5/2, reciprocal of 4= 1/4

Laws of Fractions 1. The value of a fraction does not change if its terms are multiplied by the same number except 0. 2. The value of a fraction does not change if its terms are divided by the same number except 0.

Conversion of a Fraction Improper Fraction to a whole or mixed number Ex: 4/3 = 1 1/3, 12/4 =3

Mixed number to an improper fraction

Ex: 6 2/3= 20/3

Lower terms fraction to a higher terms fraction

Ex: raise 3/5 to twenty-fifths= 15/25 3/7= 12/28 Ex: reduce 12/16 to lowest term

Higher terms fraction to a lowest terms fraction

12/16 divided by 4/4 = 3/4 Ex: change 3/4 &5/6 to similar fraction LCD= 12 = 9/12 5/6 = 10/12

Dissimilar fractions to similar fractions

Addition of Fractions
Examples Similar fractions Dissimilar Fractions Mixed Numbers Subtraction of Fractions 3/4 + = 4/4 + 5/6 = 9/12 6 1/5+ 2 2/5 = 8 3/5 3 + 2 2/7 = 5 15/28 5/8+5/8= 10/8

Similar fractions
Dissimilar Fractions Mixed Numbers

4/7- 2/7 = 2/7 6/7 = 12/14 7/14 = 5/14 6 8/9 + 2 1/9 = = 5+ (3/3 + 1/3)- 2 2/3 = 5 4/3 2 2/3 = 3 2/3

Multiplication & Division of Fractions A Fraction & Whole No. A Fraction & Mixed No. A Whole No. & Mixed No. Mixed No.& Mixed No. 8 x 2/3 = 16/3 5/9 x 1 2/5= 7/9 12 2/3 x 4 = 50 2/3 2 x 3 5/6 = 10 13/24 3/5 x 10 = 6 2 1/3 x 2/4 = 1 1/6

Division of Fractions

In dividing fractions, we invert the divisor & multiply

1/8 / 8 = 1/64 4 1/5 / 1/5 = 21 2 x 2 = 25/4 2 7/8 / 2 = 23/16

Ratio & Proportion

Ratio- relation betwn. 2 like nos. or quantities expressed as a quotient or fraction. Ratio of one no. a to another no. b ( a:b ) The fraction a/b provided b not = to 0. a :b = a/b

Proportion- two ratio are equal. Equality of 2 ratios or fractions

Ex:

a:b = c:d or

a/b= c/d

as a is to b as c is to d.

The are 4 terms in a proportion Ex: 6: 24 = 1: 4 where 6 & 4 (extremes) 24 & 1 (means)

Chapter 4

Percentage in Business

Chapter 4: Percentage in Business Percent, denoted by %, is expression which indicates the number of parts taken from a hundred. It also means hundredths. Thus 5% is the same as the fraction 5/1000, or as the decimal 0.05. Conversion techniques 1. To reduce a decimal to a common fraction, we write the given decimal number regarding the decimal point as the numerator of a common fraction with a denominator of the power of 10 of the given decimal. Examples: 0.7 = 7/10 0.16 = 16/100 2.075 = 2 75/1000 there is 1 decimal place so the denominator is 10. there are 2 decimal places so the denominator is 100. for 3 decimal places, 1000 is the denominator.

2. To reduce a common fraction to a decimal, we divide the numerator by the denominator. Examples: solutions: 0.5 2) 1.0

= 0.5

3. To change a percent to decimal, we move the decimal point two places to the left and drop the percent sign. If the percent is in fractional units, we change first the fraction to decimal before moving the decimal point. Examples: 40% = 0.40 0.05% = 0.0005 4. To change a decimal to a percent, we move the decimal point two places to the right and add a percent sign.

Examples:
1 = 100% 0.23 = 23% 1/8 = 0.125 = 12.5%

90 %

5. To change a percent to a fraction, we drop the percent sign and replace it by 100 as denominator. If the percent is in decimal, we move the decimal point two place to the left after dropping the percent sign. Then we convert the decimal to its fractional equivalent. If the percent is in fraction, divide it by 100 and drop the percent sign. Examples:
27% = 27 / 100 1.25% = 0.0125 = 125 / 10,000 6. To change a fraction to a percent, we divide the numerator by the denominator, then we move the decimal point of the quotient two places to the right and add the percent sign. For a mixed number, we change it first to an improper fraction before performing the indicated division. Example: 3/5 = 0.60 = 60% 0.60 5) 3.00

Aliquot Parts

Any number that is contained in another number in an exact number of times is called an aliquot part of that number. For instance, P0.20(1/5), P0.25(1/4), P0.50(1/2) are all aliquot parts of P1, since
P0.20 is contained 5 times in P1 P0.25 is contained 4 times in P1 P0.50 is contained 2 times in P1 Thus aliquot parts are certain fractional parts of a larger number. Examples: 2 is an aliquot part of 5 (5/2 is contained 2 times in 5). 12 is an aliquot part of 100 (12 is contained 8 times in 100). Sometimes numbers which are not aliquot parts are found to be multiples of aliquot parts. Examples: 150 is a multiple of 50 taken thrice. 66 2/3 is a multiple of 33 1/3 taken twice.

Illustration for exact number of Aliquot parts

An aliquot part of 100% is any number that is contained in 100% an exact number of times. The common aliquot parts of 100% are as follows: Examples: of 100% = 50% of 100% = 25% 1/3 of 100% = 33 1/3% Illustration for Multiples of Aliquot parts

Some numbers that are not aliquot parts of 100% are found to be multiple of aliquot parts. Below are common multiples of aliquot parts: Examples: 3/4 of 100% = 75%
2/3 of 100% = 66 2/3% 3/8 of 100% = 37 %

Multiplying an Aliquot part of 100%

To multiply any number by an aliquot part of 100% we multiply the given number by the fractional equivalent and by the corresponding 100%. Examples:
800 x 0.37 = 800 x 3/8 = 300 Note that 0.371/2 is equivalent to 3/8 of the larger number 1, i.e, 0.375 = 375 /125 = 3/8 1000/125 Dividing by an Aliquot part of 100% In dividing a number by an aliquot part of 100% we divide the given number by 100% and divide again by the fractional equivalent. Example: 10/0.33 1/3 = 10/ 1/3 = 10.3 = 30

Note that 0.33 1/3 is equivalent to 1/3 or the larger number 1.

Percentage Formulas

A percentage is the result obtained by taking a certain percent of a number. Percentage (P) is equal to the base (B) times the rate (R) . The base is the number on which the percentage is computed. The rate is the number indicating how many percent of hundreths are taken.
Percentage Formulas Percentage P = R x B Rate R = P / B Base B = P / R

The percentage (P) refers to the actual quantity or number of items represented by the rate. The Base (B) is usually preceded by the preposition of in word problems. Of indicates multiplication. The word is is symbolized by the equal sign +. Other words may be used instead of of such as as many as , as great as, as much as. The rate (R) is identifiable because it is usually in the form of a percent. However, it can also be in decimal or in fraction.
Examples: P25 is what part of P130?

Solution: From P = R x B, we have

R = P/B
Percentage Variations This section aims to:

R = 26 / 130 = 1/5

1. relate the percentage formulas on solving problems; and

2. solve problems on percentage increase or decrease. Note that we dont multiply or divide a number by percent. We always change the percent to a decimal or a fraction first before multiplying or dividing.

1. To find the percentage of increase or decrease, we multiply the base by the rate and add the product to the base if it is an increase but subtract the product from the base if it is a decrease.
B + (B x R) = Percentage of Increase

B (B x R) = Percentage of Decrease

2. To find the rate of increase or decrease, get the difference between the two given related values and divide it by the base or base or original quantity. Change the fraction to percent if it is needed.
Larger Value Smaller Value Base or original quantity = Rate of Increase or Decrease

3. To determine the base when a number that is a fractional part or percent is greater than or smaller than that of the unknown value, we divide the given number or percentage by the sum (if greater than) or the difference (if smaller than) between 1 and the given fraction or 100% and the given rate. P 1 + Fraction = Base of Increase

P 1 + Fraction = Base of Decrease

P 100% + Given % = Base of Increase

P 100% + Given % = Base of Decrease

Chapter 5

MARKETING GOODS,
BUYING & SELLING

Chapter 5: MARKETING GOODS, BUYING & SELLING Discounts: trade discounts, cash discounts & retail discounts Trade discounts - deduction given by manufacturers & wholesalers. May be series or single discount. Invoice net price difference between the list price & trade discount

Formulas for single trade discount Trade Discount = list price x trade discount rate List Price = Trade discount trade discount rate Trade Discount Rate = Trade Discount List Price

Invoice Price = List Price Trade Discount List Price = Invoice Price + Trade Discount Trade Discount = List Price Invoice Price

Examples: A Dining table listed at P1,285 is sold to a retailer at 20% discount. Find the amt of discount & the invoice price.

Trade Discount = List Price x Trade Discount Rate = P 1,285 x 0.2

= P 257
Invoice Price = List Price Trade Discount = P 1,285 P257 = P1,028

Trade discount series. When 2 or more trade discounts are offered on a single purchase. To find the invoice price when given a list price less a series of discounts, 2 methods may be used. Method 1 1. Apply the 1st discount to the list price 1st discount = list price x 1st discount rate 1st invoice price = list price 1st discount 2. Apply the 2nd discount to the 1st invoice price

2nd discount = 1st invoice price x 2nd discount rate

2nd net price = 1st invoice price 2nd discount Method 2 1. Subtract each rate from 100 % 2. Express all the results as decimals & multiply them. 3. Subtract the product from 1 & the difference is the corresponding single equivalent rate.

Cash & Retail Discounts Cash Discounts are special deductions from invoice price given to the buyers who pay their accounts within a specified period of time.

Terms of Payment: Cash on delivery (COD)

: n/10 , n/20, n/60 : End of the Month : Discount from prompt payment

Retail Discounts Are offered by retailers to consumers. May also be a single or a series rate of discount. Marked price/ list price- price which the retailers offer to sell an article Markdown- amount of discount Net price/ selling price- price to be paid by customer after deducting a possible discount

Markdown/ Retail Discount = Marked Price x R Marked Price = Markdown Retail Discount Rate Retail Discount Rate = Markdown Marked Price

Selling Price = Marked Price Markdown Marked Price = Selling Price + Markdown

Markdown = Marked Price Selling Price