Chabot College
Fall, 2002
Course Outline for Business 16
BUSINESS MATHEMATICS
Catalog Description:
16 -
Business Mathematics
3 units
Mathematics to solve typical business problems including simple interest, compound
interest, installment sales, trade and cash discounts, markup percents, pricing,
discounting notes and drafts, depreciation, taxes, insurance, statistics, stocks,
bonds, and distribution of ownership and profits. Strongly recommended:
Mathematics 105 or 105L (with a grade of "C" or higher). May be offered in Distance
Education Delivery format. 3 hours.
Prerequisite Skills:
None
Expected Outcomes for Students:
Upon completion of this course, the student should be able to calculate:
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the principal, interest, maturity value, interest rate or time of a simple interest
loan;
the principle, interest, maturity value, interest rate or time of a compound interest
investment;
trade and cash discounts;
the net cost of an invoice;
the true interest rate on an installment purchase of a loan;
the monthly payment required on a loan;
the average daily balance and service charge on an open-end account;
components of an income statement and balance sheet;
the amount and rate of depreciation of an asset;
the interest earned on a savings account;
cost and return on investments in stocks, bonds, and mutual funds;
the proceeds of a discounted note;
the unearned interest when a contract is paid off before maturity;
the amount and percent of markup on merchandise;
the present value of ordinary annuities and of annuities due;
gross payroll, employer and employee taxes;
insurance coverage and settlements.
Course Content:
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Simple interest
a. Ordinary interest
b. Maturity value-present value
Single discounted notes
a. Present value
b. Other discount formulas
Compound interest
a. Present value
b. Daily and other impounding methods
Consumer credit
a. Open-end credit
b. Installment plans
c. Annual percentage rate by table and formula
d. Rule of 78
e. payoff of loan early
Chabot College
Course Outline for Business 16, Page 2
Business Mathematics
Fall 2002
Course Content (Continued)
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Purchase discounts and markup
a. Trade discounts
b. Cash discounts
c. Markup based on cost or selling price
d. Markdowns
Financial statements
a. Income statements
b. Balance sheet
Annuities
a. Ordinary annuities
b. Annuities due
Cost of real property ownership
Stocks, bonds, and mutual fund investments
Life, fire, and auto insurance
Sinking funds
Basic business statistics
Payroll and payroll taxes
Auto/Home purchases and financing
Methods of Presentation:
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Lecture
Problem solving
Audio visual aides
Group work
Assignments and Methods of Evaluating Student Progress:
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Typical Assignments:
a. Homework assignments
b. Complete all problems from the workbook
c. Calculate the effective rate (APY) of interest for one year for given principle,
and rule
Methods of Evaluating Student Progress:
a. Examinations
b. Final examination
Textbook(s) Typical:
PRACTICAL BUSINESS MATH PROCEDURES, Jeffrey Slater, Irwin, 2000
FUNDAMENTALS OF BUSINESS MATHEMATICS, Walter Williams, James Reed,
William C. Brown, Publishers, 1999
PRACTICAL BUSINESS MATH AND APPLICATION APPROACH, Michael Tuttle,
William C. Brown Publishers, 1999
Special Student Materials:
A four function calculator
mc 11/28/01
COBUS16