Business Math Syllabus

Catalog Description: Instruction in the fundamentals of business mathematics including analytical and
problem-solving skills for critical thinking in business applications. Lecture hours = 3, Lab hours = 3

Prerequisites: None

Semester Credit Hours: 4
Lecture Hours per Week: 3
Contact Hours per Semester: 96
State Approval Code: 5204080000

Course Subject/Catalog Number: POFT 1421
Course Title: Business Math

Course Rationale: This course provides students with basic mathematics skills that can be applied to
modern business problems.

Instructional Goals and Purposes: The purpose of this course is to provide students with basic math
skills useful in solving real-life business problems.

Learning Objectives:
1. Solve basic math problems using whole numbers, fractions, decimals, percents, and equations.
2. Solve business math problems using equations.
3. Maintain checking accounts and prepare bank reconciliations.
4. Prepare invoices and calculate trade and cash discounts.
5. Calculate markups and markdowns.
6. Compute payroll.
7. Compute simple and compound interest.
8. Solve mortgage problems.
9. Complete depreciation problems.
10. Evaluate investments in stocks, bonds, and mutual funds.

Specific Course Objectives (includes SCANS):
After studying the material presented in the text and online, the student should be able to complete all
behavioral/learning objectives listed below with a minimum competency of 70% on quizzes, the math
notebook, and exams.

1. Solve basic math problems using whole numbers, fractions, decimals, and percents. (1a-i,
1a-ii, 1a-iii, 1a-iv, 1b-iii, 1b-vi, 2a-ii, 2c-iii, 2e-ii)
a. Identify the place value of whole numbers.
b. Read and write whole numbers in numerical and word form.
c. Round whole numbers to a specified place value.
d. Add, subtract, multiply, and divide whole numbers manually and using a calculator.
e. Solve business math word problems using whole numbers.
f. Identify a proper fraction, an improper fraction, and a mixed number.
g. Convert a mixed number to an improper fraction.
h. Convert an improper fraction to a mixed number.
i. Raise a fraction to higher terms.
j. Reduce a fraction to its lowest terms.
k. Add, subtract, multiply, and divide fractions and mixed numbers.
l. Use the cancellation method to simplify multiplication and division of fractions.
m. Convert fractions to decimals and decimals to fractions.
n. Use the calculator to add, subtract, multiply, and divide fractions and mixed numbers.
o. Solve business math word problems using fractions and mixed numbers.
p. Identify the place value of decimal numbers.
q. Read and write decimal numbers in numerical and word form.
r. Round decimal numbers to a specified place value.
s. Add, subtract, multiply, and divide using decimal numbers.
t. Convert decimals and fractions.
u. Convert fractions to decimals.
v. Solve business math word problems using decimals.
w. Convert percents to decimals.
x. Convert decimals to percents.
y. Convert percents to fractions.
z. Convert fractions to percents.
aa. Use the percentage formulas to find a rate, the portion, or the base.
bb. Find the amount of increase or decrease.
cc. Find the percent increase or decrease.
dd. Use the percentage formulas to solve business math word problems.

2. Solve business math problems using equations. (1a-i, 1a-iii, 1a-iv, 1b-iv, 1b-vi, 2e-ii)
a. Explain the concept, terminology, and rules of equations.
b. Write expressions and equations from written statements.
c. Solve equations for the unknown and prove the solution.
d. Set up and solve business-related word problems by using equations.
e. Express a relationship as a ratio.
f. Set up proportions.
g. Apply ratios and proportions to problem-solving situations.

3. Maintain checking accounts and prepare bank reconciliations. (1a-i, 1a-ii, 1a-iii, 1a-iv, 1b-vi,
2a-ii, 2e-ii)
a. Apply banking terminology.
b. Open a checking account.
c. Write a check in proper form.
d. Endorse a check by using blank, restrictive, and full endorsements.
e. Prepare deposit slips in proper form.
f. Use check stubs or checkbook registers to record account transactions.
g. Recall the parts of a bank statement.
h. Prepare a bank statement reconciliation.

4. Prepare invoices and calculate trade and cash discounts. (1a-i, 1a-ii, 1a-iii, 1a-iv, 1b-ii, 1b-vi,
2a-i, 2a-ii, 2e-ii)
a. Recall the parts of an invoice.
b. Extend and total an invoice.
c. Calculate the amount of a single trade discount.
d. Calculate the net price by using the net price factor.
e. Calculate the trade discount rate when the list price and net price are known.
f. Calculate the net price of a series of trade discounts by using the net price factor, complement
method.
g. Calculate the amount of a trade discount by using a single equivalent discount.
h. Calculate cash discounts and net amount due.
i. Calculate the net amount due with credit given for a partial payment.
j. Determine the discount date and net date.

5. Calculate markups and markdowns. (1a-i, 1a-iii, 1a-iv, 1b-vi, 2a-ii, 2d-i, 2e-ii)
a. Use the retailing equation to find the cost, amount of markup, and selling price of an item.
b. Calculate the percent markup based on cost.
c. Calculate the selling price when cost and percent markup based on cost are known.
d. Calculate the cost when selling price and percent markup based on cost are known.
e. Calculate percent markup based on selling price.
f. Calculate selling price when cost and percent markup based on selling price are known.
g. Calculate cost when selling price and percent markup based on selling price are known.
h. Convert percent markup based on cost to percent markup based on selling price, and vice
versa.
i. Determine the amount of markdown and the markdown percent.
j. Determine the selling price after a markdown and the original price before a markdown.
k. Compute the final selling price after a series of markups and markdowns.
l. Calculate the selling price of perishable goods.

6. Compute payroll. (1a-i, 1a-iii, 1a-iv, 1b-vi, 2a-i, 2a-ii, 2d-i, 2e-ii)
a. Calculate salary on the basis of weekly, biweekly, semimonthly, and monthly pay periods.
b. Calculate gross pay by hourly wage, including regular and overtime pay.
c. Calculate gross pay by straight and differential piecework schedules.
d. Calculate gross pay by straight and incremental commission, salary plus commission, and
drawing accounts.
e. Compute FICA taxes, both social security and Medicare, withheld from an employee's
paycheck.
f. Calculate an employee's federal income tax withholding (FIT) by the percentage method.
g. Determine an employee's total withholding for federal income tax, social security, and Medicare
using the combined wage bracket tables.
h. Compute FICA tax for employers and self-employment tax for self-employed persons.
i. Compute the amount of state unemployment taxes (SUTA) and federal unemployment taxes
(FUTA).
j. Calculate an employer's fringe benefit expenses.
k. Review Internal Revenue Service payroll forms.

7. Compute simple and compound interest. (1a-i, 1a-iii, 1a-iv, 1b-vi, 2a-i, 2a-ii, 2e-ii)
a. Compute simple interest for loans with terms of years or months.
b. Calculate simple interest for loans with terms of days by using exact interest or ordinary interest
methods.
c. Calculate the maturity value of a loan.
d. Calculate the number of days of a loan.
e. Determine the maturity date of a loan.
f. Solve for the principal, rate, or time.
g. Calculate loans involving partial payments before maturity.
h. Calculate bank discount and proceeds for simple discount notes.
i. Calculate the true or effective rate of interest for a simple discount note.
j. Discount notes before maturity.
k. Manually calculate the compound amount (future value) and compound interest.
l. Compute the compound amount (future value) and compound interest using the compound
interest tables.
m. Create compound interest table factors for periods beyond the table.
n. Calculate the annual percentage yield (APY) or effective interest rate.
o. Calculate the compound amount by using the compound interest formula.
p. Calculate the present value of a future amount by using the present value tables.
q. Create present value table factors for periods beyond the table.
r. Calculate the present value of a future amount by using the present value formula.

8. Solve mortgage problems. (1a-i, 1a-iii, 1a-iv, 1b-vi, 2a-i, 2a-ii, 2e-ii)
a. Calculate the monthly payment and total interest paid on a fixed-rate mortgage.
b. Prepare a partial amortization schedule of a mortgage.
c. Calculate the monthly PITI of a mortgage loan.
d. Review closing costs and calculate the amount due at closing.
4
e. Calculate the interest rate of an adjustable-rate mortgage.
f. Calculate the potential amount of credit available to a borrower.
g. Calculate the housing expense ratio and the total obligations ratio of a borrower.

9. Complete depreciation problems. (1-a-i, 1-a-iii, 1-a-iv, 1-b-vi, 2-a-i, 2-a-ii, 2-d-i, 2-e-ii)
a. Calculate depreciation using the straight-line, the declining-balance, the sum-of-the-yearsdigits,
the units-of-production, and the Modified Accelerated Cost Recovery System (MACRS)
methods.
b. Determine salvage value.
c. Determine a rate of depreciation based on the straight-line method.
d. Calculate book value.
e. Determine gain or loss on the sale of an asset.
f. Solve business problems involving depreciation.

10. Evaluate investments in stocks, bonds, and mutual funds. (1-a-i, 1-a-iii, 1-a-iv, 1-b-vi, 2-a-i, 2-aii,
2-e-ii)
a. Read a newspaper to determine the selling price, volatility, and average selling price over the
last year of a specific stock, bond, or mutual fund.
b. Use the Internet to determine the selling price, volatility, and average selling price over the last
year of a specific stock, bond, or mutual fund.
c. Apply terminology associated with stocks, bonds, and mutual funds.
d. Calculate the distribution of dividends to preferred and common stockholders.
e. Calculate the current yield for a stock.
f. Determine the price-earnings ratio for a stock.
g. Compute the cost, proceeds, and gain or loss on a stock transaction.
h. Compute the cost of purchasing bonds and the proceeds from the sale of bonds.
i. Calculate the current yield for a bond.
j. Calculate the sales charge and the sales charge percent of a mutual fund.
k. Calculate the net asset value of a mutual fund.
l. Calculate the number of shares purchased of a mutual fund.
m. Calculate return on investment.

Course Content:
Students in all sections of Business Math will be required to do the following:

1. Students will read assigned sections in the text and complete an online quiz on each. Students
will use their textbooks on these assignments.
2. Students will complete assigned problems and assemble a notebook to be turned in at the end of
the semester.
3. Students will submit online objective exams.

Methods of Instruction/Course Format/Delivery: Students in both the traditional class and in the
Internet class will have access to this course via WebCT. Students in the traditional class will meet
regularly for lecture over the material. Students in the Internet class will only be required to meet with the
instructor for testing; however, Internet students are always welcome to attend the traditional class
(especially for exam reviews). Resources provided through WebCT include

• A calendar displaying assignments each week (please check often)
• Assessment solutions videos
• Practice problems
• Assignments, quizzes, and exams
• Email (totally contained within WebCT)

Each students will be assigned a quiz each week to assess his or her understanding of each chapter.
After the quizzes have been graded, the student will be able to review his or her quiz and will see a grade
in My Grades link in the left banner. Work is generally graded and posted within two days following the
deadline. In addition, students will be assigned certain problems from the end of each chapter to work.
These assignments will be completed and turned in at the end of the semester in a math notebook.

Students in both the traditional and Internet classes should use Email within WebCT to communicate with
the instructor. Using WebCT email gives you access to the instructor and other classmates without having
to remember or type email addresses—you just select a name from the list. If you are not able to contact
your instructor using email in WebCT, you may use his or her Panola College email address. Panola
College instructors attempt to respond to all email within 24 hours. Please always include a subject line
and your name in your email.

Assessment:
The following items will be assigned during the semester and used to calculate the student’s final grade:

• QUIZZES
After working through the chapter and completing the assigned problems, you will take an online
quiz over the chapter. The quizzes generally contain 10-20 True/False, Multiple Choice
questions. Save each answer as you go and click Finish only when you have completed the
entire quiz. You will have approximately 14 quizzes and your two lowest quizzes will be dropped
at the end of the semester.

• MATH NOTEBOOK
At the end of the chapter is an assessment test. These problems will basically be used as your
assignment every week. Read carefully the assignment instructions to see which problems have
been assigned (you won't do all of the problems except on rare occasions). Answers to the odd
problems can be found in the back of your text. Videos showing you how to work many of the
assigned problems are provided in WebCT. You will complete the problems assigned and then
store them in a math notebook which will be turned in at the end of the semester.

• EXAMS
Three exams will be given during the semester and they will count 60 percent of your final grade.
Any test that is missed by the student will be counted as a 0 unless prior arrangements have
been made with the instructor. Each exam will cover approximately five chapters and will be
administered online.

Course Grade:
The grading scale for this course is as follows:

• Quizzes – 25%
• Math Notebook – 15%
• Exams – 60%

Assignments are due as assigned and 10 points will be deducted for each day work is late. All of your
grades including a mid-semester and final grade will be posted to My Grades in WebCT.

Texts, Materials, and Supplies:
• Contemporary Mathematics for Business and Consumers, Custom 4th Edition, 2006, Brechner,
Thomson South-Western and WebCT access code; ISBN: 0324552548.
• Scientific or financial calculator
• Access to a computer and the Internet.