DEPARTMENT OF MANAGEMENT

Individual Assignment
CA 01
Subject Details
Subject Business Mathematics

Subject Code MGT-1302

Student Details
Student Name Student Number Signature
1 B.A.A.H RAVINDU 7510

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We (Group) certify that the content of the above assignment is one of our original work and not copied
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other person’s original work or ideas. So, the report or the work We have done is free of plagiarism.

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INTRODUCTION

Business mathematics is the mathematics used by commercial enterprises to record and manage
business operations. Commercial organizations use mathematics for accounting, inventory
management, marketing, sales forecasting, and financial analysis.

It helps you to know the financial formulas, fractions; Measurements related to interest
calculations, rent rates, salary calculations, tax calculations, etc. that help to complete the
business efficiently. Business mathematics also includes statistics and solutions to business
problems.

Business Mathematics Summarizes data and presents it accurately. It makes it easier for
decision makers to take quick and necessary action. Using business mathematics can help you
make an important decision based on numerical and measurable scales, not personal beliefs, and
opinions.
PART A

❖ PERSENTAGE

Percentages are used widely and in many different areas. For example, discounts in shops, bank
interest rates, rates of inflation and many statistics in the media are expressed as percentages.
Percentages are important for understanding the financial aspects of everyday life.

The dictionary meaning of percentage is a rate, number, or amount in each hundred.

What this means is that a percentage is any decimal or fraction shown as a number out of
hundred. The symbol for percentage is %. A percentage makes it easier to gauge the value of
fraction.

We use percentage a lot in our daily lives. The following are some examples.

1.) SALES TAX

A sales tax is a consumption tax imposed by the government on the sale of goods and services.
A traditional sales tax is levied at the point of sale, collected by the retailer, and paid to the
government.
 2.) INGREDIENTS PERCENTAGE

Ingredients on the back of bottle, box, or any product, A few of you may have noticed the
ingredients written in percentage. This helps gauge the amount of each ingredient.
3.) BANK INTEREST PERCENTAGE

An interest rate is an interest rate that is paid over a period as a ratio of the amount lent,
deposited, or borrowed. The total interest on a loan or borrowed money depends on the
principal amount, the interest rate, the frequency of the compound and the time it was lent,
deposited, or borrowed.
4.) TO SURVEY RESULTS

At the end of a survey, people often display their results in the form of a percentage.
Preferably in a pie chart. This gives us a better idea of the amount of people who selected
something.

5.) EXAM RESULTS

Have you ever taken or seen an exam you would have noticed that the results come out in
percentage. This gives to a better idea of marks than fraction.
 ❖ DISCOUNT

Reduction of money in any certain bill or reduction of price in anything we buy is called
Discount.

Discounts are often promotions that businesses offer to their customers that reduce the cost of
goods or services by a percentage or using specific criteria. For example, a store may offer a 50%
discount on specific products. Businesses can use discounts to remove unwanted inventory,
promote new items for sale, or attract customers. These discounts also give value to the
customers, making these purchases easier due to the lower price.

1.) WEDDING DISCOUNT

Among wedding packages, the offers a selection of weddings packages to cater to guests'
diverse requirements and budgets with discounts.
2.) SALES DISCOUNT

A sales discount is a deduction of a certain percentage of the total amount stated by the
seller on an item.

3.) FREE SHIPPING DISCOUNTS

Businesses use free shipping discounts to encourage customers to make online purchases.
These discounts help make the online shopping experience easier and less costly. Some
brands put a minimum order cost or quantity threshold to help reduce the cost of free
shipping. For example, you can offer free shipping only on orders over $50. This discount
can also help businesses stay competitive. If a customer finds a product for the same price
from two stores, the option that offers free shipping typically makes more financial sense
for them.
4.) BULK OR WHOLESALE DISCOUNTS

This discount type applies to customers who purchase items in bulk, often offered by
wholesalers, manufacturers, or suppliers. Wholesalers typically offer discounts based on a
threshold of units included in the order. For example, a 10,000-unit purchase can carry a
10% discount on the total cost of the units. Some large retail and grocery businesses have
created customer loyalty and subscription programs and offer bulk items at a discount for
members.

5.) SEASONAL DISCOUNTS

Businesses may offer seasonal discounts during slow periods for particular items. These
discounts may cover items currently not in season or part of an upcoming sales season.
For example, a clothing retailer may offer discounts on ski wear during the summer when
fewer people typically make such purchases. Seasonal discounts allow customers to buy
these seasonal items for next year at a lower price. Businesses often use the post-holiday
season to offload excess inventory at a discounted price.
6.) REFERRAL DISCOUNTS

Referral discounts offer customers an incentive each time they refer a new customer to
the business. Existing customers receive a unique referral code that they can share with
other people. This referral code may offer a two-way discount, with the new customer
earning a discount on their first purchase and the referrer receiving discounts based on the
number of customers they bring to the business. Businesses can use this discount method
to drive organic traffic and create excitement or awareness about their offerings.
7.) EARLY PAYMENT DISCOUNTS

In some situations, businesses may offer early payment discounts to encourage customers
to fulfill their payments within a specific period. An early payment discount may also
encourage customers to avoid missing payments by giving them an incentive to pay
before the due date. For example, a supplier may offer a discount on a buyer's purchase
order if they agree to pay the invoice within 10 days rather than the 30-day final deadline.
This discount type can also apply to customer retail credit cards, loyalty rewards
programs and other paid subscription services.

PART B

1. 0.865

Nearest 1st decimal place:0.865

= 0.90
= 0.9

Nearest 2nd decimal place:0.865

=0.870
= 0.87
 2. Cost of the stock =100*20
=2000

Selling price =100*18

=1800

Loss =2000-1800
=200

3. a2-a-20

= a2+4a-5a-20
=a(a+4)-5(a+4)
= (a+4) (a+4)