Course No.

123 Business Mathematics - I

Course Description
Business Mathematics - I is designed to introduce the basic mathematical skills needed to
understand, analyze, and solve mathematical problems encountered in business and finance, and
in investment decision making. There are no prerequisites for Business Mathematics - 1;
however, students are expected to be able to perform the basic arithmetic operations—addition,
subtraction, multiplication and division—with ease, and to have some familiarity with fractions,
with algebraic operations, and with some basic mathematical principles.
Course Contents:
Introduction: Refreshers on the essential concepts of algebra- Importance of Business
Mathematics in Marketing.
Linear Equations and Functions: Introduction- Slope-equations of a line slope intercept form-
Straight line equations given a point and slope- Straight line equations from two points-
Horizontal and vertical lines- Parallel and perpendicular lines- Lines through the origin- Piece-
wise linear functions- Interpretive exercises: Cost output analysis- Breakeven point
interpretations- Linear demand functions.
Systems of Linear Equations: Introduction- Number of solutions possible in a system-
Operations on linear system- Elimination procedure: Unique solutions- Elimination procedure:
Non unique solutions- Applications: Mixture problems- Supply and demand Analysis-Two
product supply and demand analysis.
Set Theory: Theory of sets, elements, Methods of Describing a set – Types of sets-
Operations of sets -Union and Intersection of sets - complement of a set-power set, Algebra
of sets - Difference of two sets - partition of a set - Number of Elements in a Finite set - Set
Relations - Related problems and Applications of set theory. '
Permutations and Combinations: Fundamental rules of counting- Permutations- Factorial
notation- Permutations of n different things- Circular permutations- Permutations of things
not all different- Restricted permutations- combinations- Restricted Combinations-
Combinations of things not all different.
Real Number System: Number system - The Natural Number's- The integers - Prime
Numbers - Rational Numbers and Irrational Numbers - Real Numbers: Properties of rational
and real numbers - Imaginary and Complex Numbers.
Indices and Surds: Definition of Indices -- Laws of Indices-positive and fractional Indices
operation with power functions. Definition of surds - Similar Surds - Operations on Surd -
Root of Mixed Surd.
Natural and Common Logarithms: Definitions - Rules and use of log and Antilog-
Applications.
Mathematics of Finance: Introduction - Simple interest and the future value – Simple
discount: Present value – Bank discount- Effective rate: Simple interest- Compound interest- the
future value-the Conversion period- finding the time and the interest rate- Compound discount-
present value- Effective rate: Compound Interest- Continuous compounding- Ordinary annuities:
Future value- Ordinary annuities: sinking funds- Ordinary annuities: Present value- Ordinary
annuities: Amortization.
Textbooks:
1. Gordon D. Prichett, John C. Saber and Earl K Bowen, Mathematics with Application in
Management and Economics, Irwin
2. Business Mathematics-D.C. Sanchati & V.K. Kapoor.

Reference Books:
 Essential Mathematics for Economics and Business by Teresa Bradley and Paul
Patton, John Wiley & Sons, Ltd.
 Business Math by Cheryl Cleaves, Margie Hobbs and Jeffrey Noble, Pearson
Education, Inc.
 Business Mathematics by Gary Clendenen, Stanley A. Salzman, Pearson Education,
Inc.