Curriculum Guideline

Business Mathematics

Effective Date:
Course
Discontinued
No
Course Code
FINC 1231
Descriptive
Business Mathematics
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
Not Specified
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 3 Hours Seminar: 1 Hour
Method Of Instruction
Lecture
Seminar
Methods Of Instruction

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, amortization, sinking funds, bonds and investment decisions.
Course Content
  1. Pertinent mathematics and algebra review: ratios, proportions, percent, fractions, exponents, problem-solving logic, 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 paper, demand loans.
  5. Compound interest:  present, future and equivalent values, equivalent and effective interest rates, using differing compounding and payment periods, bond valuations.
  6. Annuities:  annuities, loan amortization, mortgages, sinking fund provisions, perpetuities.
  7. Business investment decisions using net present value and internal rate of return.
Learning Outcomes

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

  1. demonstrate 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 solving financial problems involving the calculation of simple and compound interest, annuities, investment and management decisions; and 
  4. solve basic linear problems in two variables and determine break-even positions in business.
Means of Assessment
Term Exams (2-4)       40-60%
Final Exam 30-40%
Assignments 5-20%
Participation 0-5%
Total 100%
Textbook Materials

Textbooks and Materials to be Purchased by Students

1. Hummelbrunner, Halliday, Coombs, Contemporary Business Mathematics, latest Canadian Edition, Pearson Education

or Jerome, Ernest F. Business Mathematics in Canada, latest edition, McGraw Hill

or alternate textbook approved by the Department.

2. Calculator: Texas Instruments BA II Plus OR as approved by the Department.
 

Prerequisites

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

OR currrently active in the PDD in Financial Analysis, PDD International Business Management, PDD Financial Planning, PBD International Supply Chain Management, PBD Accounting and Finance, or PBD Finance.

Corequisites

Nil

Equivalencies