B.C.'s Energy College

Course Details

Course Code:

MGMT 150

Credits:
3

Calendar Description:
This introductory course examines practical financial and mathematical problems encountered in the business community such as the mathematics of merchandising, break-even analysis and the time value of money. Other calculations include using the valuation principle to determine the pricing of T-bills, interest paid on GICs, pricing of annuities, mortgages, bonds, and preferred shares.

Date First Offered:
2006-09-04

Hours:
Total Hours: 45
Lecture Hours: 45

Total Weeks:
15

This course is offered online:
No

Pre-Requisites:
One of Principles of Math 11, Foundations 11, or Pre-Calculus II

Non-Course Pre-Requisites:
None

Co-Requisites:
None

Course Content:
- Review and applications of basic mathematics. Review of algebra.
- Ratios and Proportions.
- Markup, markdown, margin, cash and trade discounts. Break-even analysis, profit-volume-contribution analysis.
- Simple interest formulas I = Prt and S = P(1 +rt) and investments at simple interest. Maturity value, time value of money, future value,
present value.
- Equivalent value, equations of value, equivalent payment streams. Use of a time diagram.
- Blended payment loans. Accrued interest and principal balance owed on a loan.
- Nominal, effective and periodic rates of interest.
- Unknown payments in a payment stream.
- Solving for variables, S, P, i, n, and payment using a financial calculator.
- Introduction to annuities.
- More of annuities. Deferred annuities, annuities due, and perpetuities.
- Amortization schedules. Sinking fund schedules. Assignment 2 due
- Market value, yield rate, premium and discount of a bond. Review.

Learning Outcomes:
Upon the successful completion of this course the student should have:
1. Increased knowledge and skill in the solution of practical financial and mathematical problems encountered in the business community.
Performance indicators:
• Solve merchandising problems involving trade and cash discounts, markups, markdowns, and terms of payment.
• Apply the formulas I = Prt and S = P(1 +rt) to cases of loans and investments at simple interest.
• Define or explain and calculate the terms maturity value, time value of money, equivalent value, future value, present value, equivalent payment streams, equations of value, using algebraic formulas.
• Describe arrangements for the repayment of certain types of demand loans including blended payment loans.
• Calculate the accrued interest and principal balance owed on a loan at any point.
• Calculate an unknown payment in a payment stream so that the stream will be equivalent to another stream of known payments.
• Solve for any one of the four variables, S, P, i, n, given the other three using formulas and a financial calculator.
Also, solve for Payment.
• Distinguish between various types of annuities.
• Calculate the market value of an annuity or loan, size and duration of payments or interest rate.
• Solve for present or future value, interest rate, payment size, deferral period for deferred annuities, annuities due, or perpetuities.
• Produce an amortization schedule including determining the principal balance, principal and interest components at any payment.
• Prepare a sinking fund schedule.
• Determine the market value, yield rate, premium or discount of a bond.
2. A base for mathematical topics used in other business courses such as accounting, finance, economics, management, and marketing.
Performance indicators:
• Solve merchandising problems involving trade and cash discounts, markups, markdowns, and terms of payment.
• Construct a break even chart.
• Convert between nominal, effective and periodic rates of interest using formulas and a financial calculator.
• Calculate the market value of an annuity or loan, size and duration of payments or interest rate.
• Produce an amortization schedule including determining the principal balance, principal and interest components at any payment.
• Prepare a sinking fund schedule.
• Determine the market value, yield rate, premium or discount of a bond.
3. Greater confidence in their ability to solve mathematical problems
Performance indicators:
• Present information about the size and timing of payments in a time diagram.
• Convert problems into equations and solve word problems.

Letters

D (50%)

Final Exam: 20 %
Midterm Exam: 20 %
Assignments: 30 %
Participation: 10%
Other: 20 %

Number of Assignments:

3

Specify nature of Participation:

Attendance and Classroom participation

Specify Other:
Concept Questions

Percentage of Individual Work:
80

Percentage of Group Work:

20

Course Offered in Other Programs:

No