## MGMT 150 - Business Mathematics

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.

Credits: 3

Hours: 45 (Lecture Hours: 45)

Total Weeks: 15

Prerequisites:

One of the following with a 'C' grade (60%) or higher: Pre-calculus 11, Principles of Mathematics 11, Foundations of Math 11, Math 040, Math 042, or equivalent.

Non-Course Prerequisites:

None

Co-Requisites:

None

Course Content:
- Basic mathematics and 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.
- 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
- Introduction to annuities.
- Deferred annuities, annuities due, and perpetuities.
- Amortization schedules.
- Sinking fund schedules
- Market value, yield rate, premium and discount of a bond.

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 and calculate using algebraic formulas the following terms: maturity value, time value of money, equivalent value, future value, present value, equivalent payment streams and equations of value.
- 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 variables, S, P, i, n and payment
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.
- 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. Increased knowledge and skill in solving 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.

Grading System: Letters

Passing Grade: D (50%)

Percentage of Individual Work: 85

Percentage of Group Work: 15

Additional Course Comments:
Assignments are mandatory and must be handed in on the specified due date.  Work handed inlate may lose marks for each day delayed.  Exceptions may be made for documented medical reasons or extenuating circumstances.  Cheating and plagiarism policy will be enforced, as per NLC rules and procedures.

Textbooks:
Textbooks are subject to change.  Please contact the bookstore at your local campus for current book lists.