Commercial & Financial Mathematics

Curriculum Guideline

Effective Date:
Course Code
FINC 1231
Commercial & Financial Mathematics
Commerce & Business Administration
Start Date
End Term
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
Contact Hours
Lecture: 3 Hours Seminar: 1 Hour
Method(s) Of Instruction
Learning Activities

Material will be presented within an interactive lecture and seminar format.

Course Description
This course will provide an understanding of time value of money and its applications. Relevant mathematical concepts will be used to solve business problems. After a basic review of underlying mathematical and algebraic methodology, the course covers the mathematics of merchandising, linear break-even analysis, simple and compound interest; annuities, and amortization, sinking funds, bonds and investment decisions. The course will also introduce the student to basic statistics.
Course Content
  1. Pertinent mathematical and algebra overview: review ratios, proportions, percent, fractions, exponents, problem-solving logic, introduce logarithms and weighted average.
  2. Application of linear functions to a variety of business problems, including percent change, payroll and return on investment, discounts, mark-up, mark-down.
  3. Cost Volume Profit Analysis:  linear break-even by quantity, dollar amount, percent of capacity.
  4. Simple interest:  time value of money, equivalent values, promissory notes, T bills, commercial papers demand loans.
  5. Compound interest:  present, future and equivalent values, continuous compounding, interest rate and number of conversion period calculations, equivalent and effective interest rates.
  6. Annuities:  ordinary annuities, simple annuities, annuities due, complex annuities; loan amortization, mortgages, sinking fund perpetuities, present and future values, payment, interest rate and number of conversion period calculations, equivalent effective interest rates.
  7. Bonds, business investment decisions, including net present value and internal rate of return.
  8. Basic descriptive statistics, mean, median, mode, range, standard deviation, coefficient of variation, empirical rule.
Learning Outcomes

At the end of the course, the successful student should be able to:


  1. Demonstrate the mathematical and algebraic skills and use of logic to solve business-related problems;
  2. solve mathematics of merchandising problems, including cash and trade discounts, mark-up and mark-down;
  3. demonstrate competence in the solving of financial problems involving the calculation of simple and compound interest in discount, annuities, investment and management decisions;
  4. solve basic linear problems in two variables and determine break-even positions in business;
  5. understand and be able to use basic statistics.
Means of Assessment
Term Exams (3-4)         50% - 60%
Final Exam           30%
Assignments   5% - 15%
Participation     0% - 5%
Total         100%
Textbook Materials

Textbooks and Materials to be Purchased by Students

  1. Jerome, Ernest F.  Business Mathematics in Canada, latest ed.  Toronto:  Irwin Publishing.
  2. The only approved Faculty of Commerce and Business Administration calculator/s that may be used for tests and examinations are any of the following:
    Texas Instruments BA II+, Hewlett Packard 10B, and Sharp EL733A.



Pre-Calculus 11 (C or higher) or Foundations of Math 11 (C or higher) or MATU 0410  (C or higher) or an approved substitute.



Which Prerequisite