BT 160 - Business Math

MTH 20  or designated placement.

Corequisite(s):  

BT 113  or WR 115  

WR 115Q  as required.

Course Description: This course introduces math applications used in business including percentages, fractions, interest (compounding, present value, future value), and other common business applications.

Course Learning Outcomes:

• CLO#1: Determine the appropriate method to set up a word problem and to solve for the unknown(s).
• CLO#2: Convert decimals and fractions to percentages and percentages to decimal and fractions. List and define the key elements of the portion formula and solve for one unknown when the other two key elements are given. Calculate the rate of percent increase or decrease.
• CLO#3: Calculate singe trade discounts and chain discounts with net price equivalent and single equivalent discount rates. Determine the invoice price of an item with FOB shipping point and FOB destination and credit terms. Calculate the invoice due date under typical business credit terms. Compute outstanding balance with partial payments.
• CLO#4: Calculate dollar markup and percent markup based on cost and based on selling price. Calculate selling price, cost, or the percent markup based on cost and based on selling price when two of the three are given. Calculate markdowns and markups. Price perishable items to cover spoilage loss.
• CLO#5: Calculate simple interest and maturity value by months; years; exact time, exact interest; and exact time, ordinary interest. Using the interest formula, calculate the unknown when the other two (principal, rate, or time) are given. Compute the proper interest credits under the U.S. Rule.
• CLO#6: Calculate bank discount, maturity value, proceeds, and effective rate for simple discount notes. Compute the maturity value, bank discount, and proceeds of discounting an interest-bearing note before maturity.
• CLO#7: Calculate and compare simple interest and compound interest. Calculate future value (compound amount), present value, and interest by table lookup and by using a financial calculator. Compute effective rate of interest.
• CLO#8: Calculate the future value of an ordinary annuity & an annuity due and the present value of an ordinary annuity by table lookup and by using a financial calculator. Calculate a sinking fund payment made at the end of each period by table lookup. (ILO: Quantitative Literacy and Reasoning)
• CLO#9: Determine the cost of installment buying by calculating amount financed, finance charge, deferred payment, and estimated APR by formula and by table lookup. Calculate paying off an installment loan before the due date. Compute finance charges on revolving charge credit card accounts.
• CLO#10: Differentiate between the types of mortgages available. Compute monthly mortgage payments utilizing an amortization chart and a financial calculator. Calculate the total interest over the life of a mortgage and the amount of interest and principal portion of each monthly payment.
• CLO#11: Define and calculate the mean, weighted mean, median, and mode; prepare a frequency distribution; and explain and calculate the range and standard deviation.