BUSINESS MATH
Symbols for math operations:
Name:
Add _____
Subtract _____
Multiply _____
Divide _____
ORDER OF OPERATIONS
Order of operations refers to the order which operation in a mathematical formula should be performed:
1. Parentheses (left to right)
2. Multiplication and division (left to right)
3. Addition and subtraction (left to right)
Solve the following mathematical formulas:
2 + 7 * 8 / 2 – 10 =
10 – (24+9) * 2 =
120 / 3 + 20 * 2 – 5 =
AVERAGE
To find the average of a group of numbers, add the numbers together and then divide the sum by the number of
items in the group.
Find the average of $36, $49, $22, $48, $39, $40, and $18:
Find the average of 3.2, 4.2, 9.25, 5, 7.1, 9.8, and 12.4:
PERCENT
To find a percent of a number, write the percent as a decimal then multiply the given number by the decimal.
25% of 384=
21% of 54=
85% of 400=
PAYROLL
A person who is paid by the hour works for an hourly rate which is a certain amount of money for each hour
worked. The total amount of money that an employee is paid is called gross pay or total earnings.
GROSS PAY = Hourly Rate x Number of Hours Worked
Cassie earns $16.25 an hour. What is her gross pay for last week if she worked 25 hours?
Mark is paid $9.10 an hour. He worked 38 hours last week. What is his gross pay?
Deductions are subtractions from gross pay. The federal government as well as many states requires employers
to deduct money from employee wages for income taxes social security, and Medicare taxes. The amount of
money withheld depends on the gross pay and the number of dependents the employee has. Deductions for
taxes are usually about 30% of the gross pay. To calculate deductions for this assignment:
DEDUCTIONS = Gross Pay * .30
Based on Cassie’s gross pay above, approximately what amount will be deducted for taxes:
Based on Mark’s gross pay above, approximately what amount will be deducted for taxes:
In addition to taxes, other deductions may also be subtracted from total wages or gross pay such as premiums
for health and life insurance. After all deductions are subtracted from gross pay, the amount that remains is
called net pay.
NET PAY = Gross Pay – Deductions
What is Cassie’s net pay?
What is Mark’s net pay?
MARKDOWN
When a business decides to put items on sale they apply a markdown to their original selling price.
To calculate the price of an item that is marked down:
Percentage of markdown * Regular Price = Amount of Markdown
Regular Price – Amount of Markdown = Selling Price
then
or
100% - Percent of Markdown = Percent of Regular Price that will be paid
Regular Price * Percent of Original Price that will be paid
then
If the marked price of a backpack is $70 and it is advertised on sale as 15% off, what is the sale price?
A man’s suit with a price of $270 is being offered at a 20% discount. What is the sale price of the suit?
SALES TAX
In most states, when you purchase items you pay the price of the item plus sales tax. Sales tax is a percentage
of the total cost of the items you purchase. In Utah, the sales tax rate is 6.6% or .066.
To calculate Sales Tax:
Purchase Amount * Tax Rate = Amount of Tax then
Purchase Amount + Amount of Tax = Total.
A customer buys items with a total purchase price of $72. What is the amount they will pay for these items with
sales tax?
A customer buys items with a total purchase price of $37. What is the amount they will pay for these items with
sales tax?
BUSINESS MATH ASSIGNMENT
1. Use the correct order of operations to solve the following formulas:
a. 7 * 2 + (50-30)/5 =
c. 250 / 3 + 479 – 41 * 6 =
b. 927 – 64 * 4 + (840 / 12) =
d. (752 + 338) / 6 + (413 + 607) /3 =
2. Find the average of each set of numbers:
a. 545, 425, 600, 562, 399, 457
Average =
b. 260, 362, 302, 381, 295, 332, 280
Average =
c. 135.05, 241.62, 5452.13, 105.95, 261.48
Average =
3. Calculate the gross pay, deductions, and net pay for the following employees (deductions should
be 30% of gross pay):
NAME
Susan
HOURLY RATE
$8.15
HOURS WORKED
25
Mike
$9.20
30
Maria
$12.50
40
Tony
$10.35
40
Ann
$11.40
35
GROSS PAY
DEDUCTIONS
NET PAY
4. Find the sale price of each of the following items based on the discount percent given:
REGULAR
PRICE
$228
MARKDOWN %
25%
$85
20%
Stroller
$159.95
25%
DVD Movies
$19.99
15%
$875
25%
ITEM
Chair
Tent
Computer
AMOUNT OF MARKDOWN
SALE PRICE
5. Find the amount owed for each of the following purchases (use .066 as the sales tax rate):
AMOUNT OF PURCHASE
$29.30
$554.90
$72.85
$13,749
SALES TAX AMOUNT
TOTAL AMOUNT OWED