Business Mathematics

About our authors Gary Clendenen received bachelor's and master's degrees in mathematics before going into business for himself in the oil industry. He returned to academia and earned his Ph.D. in Business Management, and has been a faculty member since then. His business experience includes working as an actuary for an insurance company and owning commercial real estate. He has published papers in numerous refereed journals and does volunteer work with several organizations. His hobbies include long bicycle rides, swimming and reading on a wide variety of topics including history, economics and natural resources. He has 2 sons and several grandchildren, and he and his wife use miniature horses to encourage kids to read. Stanley A. Salzman has taught Business Math, Marketing and Real Estate courses at American River College in Sacramento for 35 years. He says, “Some of my greatest moments in teaching have been seeing the look on the face of a student who understands a business math concept or idea for the first time.” Stan and his wife have 4 children and 11 grandchildren. Stan likes outdoor activities, exercising and collecting antique toy trains.

Preface
The Business Mathematics, 14th Edition Learning System
Learning Tips for Students
Business Mathematics Pretest
Index of Applications



Whole Numbers and Decimals

1.1 Whole Numbers
1.2 Application Problems
1.3 Decimal Numbers
1.4 Addition and Subtraction of Decimals
1.5 Multiplication and Division of Decimals



Chapter 1 Quick Review
Chapter Terms
Case Study: Cost of Getting Married
Case in Point Summary Exercise: Subway
Chapter 1 Test


Fractions

2.1 Fractions
2.2 Addition and Subtraction of Fractions
2.3 Addition and Subtraction of Mixed Numbers
2.4 Multiplication and Division of Fractions
2.5 Converting Decimals to Fractions and Fractions to Decimals



Chapter 2 Quick Review
Chapter Terms
Case Study: Operating Expenses at Woodline Moldings and Trim
Case in Point Summary Exercise: The Home Depot
Chapter 2 Test


Percents

3.1 Writing Decimals and Fractions as Percents
3.2 Finding Part
3.3 Finding Base

Supplementary Application Exercises on Base and Part


3.4 Finding Rate

Supplementary Application Exercises on Base, Rate, and Part


3.5 Increase and Decrease Problems



Chapter 3 Quick Review
Chapter Terms
Case Study: Self Employed Retirement Plan
Case in Point Summary Exercise: Century 21
Chapter 3 Test


Equations and Formulas

4.1 Solving Equations
4.2 Applications of Equations
4.3 Business Formulas
4.4 Ratio and Proportion



Chapter 4 Quick Review
Chapter Terms
Case Study: Forecasting Sales at Alcorn's Boutique
Case in Point Summary Exercise: General Motors
Chapter 4 Test

Chapters 1 - 4 Cumulative Review




Bank Services

5.1 Banking, Checking Accounts, and Check Registers
5.2 Checking Services and Credit-Card Transactions
5.3 Bank Statement Reconciliation



Chapter 5 Quick Review
Chapter Terms
Case Study: Banking Activities of a Retailer
Case in Point Summary Exercise: Jackson & Perkins
Chapter 5 Test


Payroll

6.1 Gross Earnings: Wages and Salaries
6.2 Gross Earnings: Piecework and Commissions
6.3 Social Security, Medicare, and Other Taxes
6.4 Income Tax Withholding



Chapter 6 Quick Review
Chapter Terms
Case Study: Payroll: Finding Your Take-Home Pay
Case in Point Summary Exercise: Payroll at Starbucks
Chapter 6 Test


Mathematics of Buying

7.1 Invoices and Trade Discounts
7.2 Series Discounts and Single Discount Equivalents
7.3 Cash Discounts: Ordinary Dating Methods
7.4 Cash Discounts: Other Dating Methods



Chapter 7 Quick Review
Chapter Terms
Case Study: George Foreman
Case in Point Summary Exercise: Discounts at Bed Bath & Beyond
Chapter 7 Test


Mathematics of Selling

8.1 Markup on Cost
8.2 Markup on Selling Price

Supplementary Application Exercises on Markup


8.3 Markdown
8.4 Turnover and Valuation of Inventory



Chapter 8 Quick Review
Chapter Terms
Case Study: Markdown: Reducing Prices to Move Merchandise
Case in Point Summary Exercise: Recreational Equipment Inc. (REI)
Chapter 8 Test

Chapters 5 - 8 Cumulative Review




Simple Interest

9.1 Basics of Simple Interest
9.2 Finding Principal, Rate, and Time
9.3 Simple Discount Notes
9.4 Discounting a Note Before Maturity

Supplementary Application Exercises on Simple Interest and Simple Discount





Chapter 9 Quick Review
Chapter Terms
Case Study: Banking in a Global World: How Do Large Banks Make Money?
Case in Point Summary Exercise: Apple, Inc.
Chapter 9 Test


Compound Interest and Inflation

10.1 Compound Interest
10.2 Interest-Bearing Bank Accounts and Inflation
10.3 Present Value and Future Value



Chapter 10 Quick Review
Chapter Terms
Case Study: Valuing a Chain of McDonald's Restaurants
Case in Point Summary Exercise: Bank of America
Chapter 10 Test

Chapters 9 - 10 Cumulative Review




Annuities, Stocks, and Bonds

11.1 Annuities and Retirement Accounts
11.2 Present Value of an Ordinary Annuity
11.3 Sinking Funds (Finding Annuity Payments)

Supplementary Application Exercises on Annuities and Sinking Funds


11.4 Stocks and Mutual Funds
11.5 Bonds



Chapter 11 Quick Review
Chapter Terms
Case Study: Financial Planning
Case in Point Summary Exercise
Chapter 11 Test


Business and Consumer Loans

12.1 Open-End Credit and Charge Cards
12.2 Installment Loans
12.3 Early Payoffs of Loans
12.4 Personal Property Loans
12.5 Real Estate Loans



Chapter 12 Quick Review
Chapter Terms
Case Study: Consolidating Loans
Case in Point Summary Exercise: Underwater on a Home
Chapter 12 Test

Chapters 11 - 12 Cumulative Review




Taxes and Insurance

13.1 Property Tax
13.2 Personal Income Tax
13.3 Fire Insurance
13.4 Motor-Vehicle Insurance
13.5 Life Insurance



Chapter 13 Quick Review
Chapter Terms
Case Study: Financial Planning for Property Taxes and Insurance
Case in Point Summary Exercise: Mattel Inc.—Taxes and Insurance
Chapter 13 Test


Depreciation

14.1 Straight-Line Method
14.2 Declining-Balance Method
14.3 Sum-of-the-Years'-Digits Method

Supplementary Application Exercises on Depreciation


14.4 Units-of-Production Method
14.5 Modified Accelerated Cost Recovery System



Chapter 14 Quick Review
Chapter Terms
Case Study: Comparing Depreciation Methods
Case in Point Summary Exercise: Ford Motor Company
Chapter 14 Test


Financial Statements and Ratios

15.1 The Income Statement
15.2 Analyzing the Income Statement
15.3 The Balance Sheet
15.4 Analyzing the Balance Sheet



Chapter 15 Quick Review
Chapter Terms
Case Study: Bicycle Shop
Case in Point Summary Exercise: Apple, Inc.
Chapter 15 Test


Budgeting and Business Statistics

16.1 Planning and Budgeting
16.2 Frequency Distributions and Graphs
16.3 Mean, Median, and Mode



Chapter 16 Quick Review
Chapter Terms
Case Study: Watching a Small Business Grow
Case in Point Summary Exercise: Bobby Flay
Chapter 16 Test



Appendices

A. The Metric System
B. Basic Calculators
C. Financial Calculators
D. Exponents and the Order of Operations
E. Graphing Equations



Answers to Selected Exercises
Glossary
Index
Photo Credits