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CONTEMPORARY BUSINESS
MATHEMATICS WITH
CANADIAN APPLICATIONS
This page intentionally left blank
S. A. HUMMELBRUNNER
KELLY HALLIDAY
Georgian College
ALI R. HASSANLOU
Kwantlen Polytechnic University
12th Edition
@ Pearson
Pearson Canada Inc., 26 P rince Andrew Place, North York, O ntario M 3C 2H 4.
Copyrigh t © 202 1, 2018, 2015 Pearson Canada Inc . All righ ts reserved.
P rinted in the U nited States of Am erica. T his publication is protected by copyright, and permission should be obtained
from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by
any means, electronic, m echanical, photocopying, recording, or otherwise. For information regarding permissions, request
for ms, and the appropriate contacts, please contact Pearson Canada's R.ights and Per missions D epartment by visiting WW\V.
pearson.com / ea/ en / contact- us/ permissions .html.
Attributions of third-party content appear on th e appropriate page within the text. Cover and Chapter Opener Images:
Courtesy o f Euan White
PEAR.SON is an exclusive trademark own ed by Pearson Canada Inc. or its affiliates in Canada and/or other countries.
U nless otherwise indicated herein, any third party trademarks that may appear in this wo rk are the property of their respec-
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Canada products by the owners of such marks, or any relationship between the owner and Pearson Canada or its affiliates,
authors, licensees, or distributors.
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approval of the publisher or the author.
9780135285015
ScoutAutomatedPrintCode
Library and Arc hives Canada Cataloguing in Publication
T itle: Contemporary business math ematics with Canadian applications I S.A. Hummelbrunner, Kelly
H alliday, Georgian College, Ali R. H assanlou, Kwantlen Polytechnic University.
Names: H u mmelbrunner, S. A. (Siegfried August), author. J H alliday, Kelly, author. J H assanlou , Ali
R ., author.
D escription: 12th edition. Includes index.
J
Identifiers: Canadiana 20190126507 I ISBN 9780135285015 (hardcover)

Subjects: LCSH : Business mathematics-Textbooks.
C lassificatio n: LCC HF5691 .H 85 2019 J DDC 651.0l/513-dc23
@ Pearson
Preface ... xi
Student's Reference Guide to Rounding and Special Notations ... xix
Part • Mathematics Fundamentals and Business Applications ... 2

1 R eview of Arithmetic ... 4
2 R eview of Basic Algebra ... 4 5
3 Ratio, Proportion, and Percent ... 95
4 Linear Systems ... 142
Part • Mathematics of Business and Management ... 188

5 Cost-Volume-Profit Analysis and Break-E ven .. . 190
6 Trade Discounts, Cash Discounts, M arkup, and M arkdown ... 220
7 Simple Interest ... 267
8 Simple Interest Applications ... 301
Part • Mathematics of Finance and Investment ... 333

9 Compound Interest- Future Value and Present Value ... 336
10 C ompound Interest- Further Topics . . . 389
11 Ordinary Simple Annuities ... 4 17
12 Ordinary General Annuities . .. 462
13 Annuities Due, D eferred Annuities, and Perpetuities ... 493
14 An1ortization of Loans, Including R esidential Mortgages ... 548
15 Bond Valuation and Sinking Funds ... 602
16 Investment D ecision Applications . .. 650
Appendix I: Furth er R eview of Basic Algebra ... 691
Appendix II: Instructions and T ips for Three Preprogrammed Financial

Calculator Models . . . 704
Answers to Odd-Numbered Problem s, R eview Exercises,

and Self-Tests ... 71 7
Index .. . 734
Preface ... xi
Student's Reference Guide to Rounding and Special Notations ... xix
Part 0 Mathematics Fundamentals and Business Applications ... 2
1 Review of Arithmetic ... 4

1.1 Basics of Arithmetic . . . 5
1.2 Fractions ... 7
1.3 Percent . . . 13
1.4 Applications-Averages .. . 17
1.5 Applications-Payroll ... 24
1.6 Applications-Taxes ... 32
BUSINESS MATH NEWS ... 37
Review Exercise ... 38
Self- Test .. . 40
Challenge Problems . . . 41
Case Study Businesses and the GST/ HST ... 42
Glossary .. . 43
2 Review of Basic Algebra ... 45

2.1 Simplification of Algebraic Expressions ... 46
2.2 Integral Exponents . . . 53
2.3 Fractional Exponents .. . 61
2.4 Logarithms-Basic Aspects ... 64
BUSINESS MATH NEWS .. . 71
2.5 Solving Basic Equations ... 72
2.6 Solving Equations Involving Algebraic Simplification . . . 77
2.7 Solving Word Problems .. . 82
Self- Test .. . 9 0
C hallenge Problems ... 91
Case Study Investing in a Tax- Free Savings Account . .. 92
Swrnnary of Formulas ... 92
Glossary .. . 94
3 Ratio, Proportion, and Percent ... 95

3.1 Ratios . . . 96
3.2 Proportions . . . 101
3.3 T he Basic Percentage Problem . . . 107
3.4 Problems Involving Increase or D ecrease ... 115
3.5 Problems Involving Percent .. . 120
3.6 Applications--Currency Conversions ... 127
3.7 Applications-Index Numbers . .. 131
3.8 Applications-Personal Income Taxes .. . 134
CONTEN TS VII
Review Exercise . . . 136

Self-Test . . . 138
Challenge Problems . . . 13 9
Case Study The Business of Taxes ... 140
Summary of Formulas ... 14 1
Glossary ... 141
4 Linear Systems ... 142

4.1 Graphing Linear Equations . . . 143
4.2 Graphing Linear Systems of Equations in Two Variables ... 155
4.3 Algebraic Solution of Systems of Linear Equations in Two Variables .. . 159
4.4 Problem Solving ... 167
4.5 Graphing Inequalities .. . 172
4.6 Problem Solving ... 178
Review Exercise . . . 180
Self-Test . . . 181
Case Study Determining the Right Combination ... 182
Summary of Formulas . .. 183
Glossary . . . 183
Part 1 Comprehensive Case ... 184
Part • Mathematics of Business and Management ... 188

5 Cost-Volume-Profit Analysis and Break-Even ... 190
5.1 Cost-Volume-Profit Analysis and Break-Even Charts ... 191
5.2 Contribution Margin and Contribution Rate . .. 206
5.3 Effects of Changes to Cost-Volume-Profit .. . 210
BUSINESS MATH NEWS ... 21 4
R eview Exercise . . . 2 1 5
Self-Test . . . 216
Challenge Problems ... 2 1 7
Case Study Segway Tours . . . 2 1 7
Summary of Formulas . .. 218
Glossary ... 2 19
6 Trade Discounts, Cash Discounts, Markup, and Markdown ... 220

6.1 Determining Cost with Trade D iscounts ... 222
6.2 Payment Terms and Cash Discounts .. . 230
6.3 Markup .. . 238
6.4 Markdown . .. 246
6.5 Integrated Problems ... 252
Self-Test . .. 262
Challenge Problems . .. 263
Case Study Focusing on Prices . . . 263
Summary of Formulas ... 264
Glossary .. . 265
VIII CO NTENT S
7 Simple Interest ... 267

7 .1 Calculating the Amount of Simple Interest .. . 268
7.2 Calculating the Principal, Rate, or Time . . . 274
7.3 Computing Future Value (Maturity Value) . . . 279
7.4 Calculating the Principal (Present Value) ... 283
7.5 Computing Equivalent Values . . . 285
R eview Exercise . .. 297
Self-Test . . . 298
Case Study Cost of Financing: Pay Now or Pay Later ... 299
Glossary .. . 300
8 Simple Interest Applications ... 301

8.1 Promissory Notes . .. 302
8.2 Treasury Bills and Commercial Paper .. . 309
8.3 Demand Loans . .. 312
8.4 Lines of Credit and Simple Interest Loans ... 315
8.5 Loan Repayment Schedules ... 319
BUSINESS MATH NEWS .. . 324
Self-Test . . . 326
Challenge Problems .. . 327
Case Study Debt Consolidation . .. 327
Swmnary of Formulas .. . 328
Glossary ... 3 29
Part 2 Comprehensive Case . . . 330
Part • Mathematics of Finance and Investment ... 333
9 Compound Interest-Future Value and Present Value . .. 336

9.1 Basic Concepts and Calculations ... 337
9.2 Using the Future Value Formula of a Compound Amount
FV = PV ( 1 + i) II ••• 344
9.3 Present Value and Compound Discount . .. 356
9.4 Application-Discounting Negotiable Financial Instruments
at Compound Interest . . . 362
9.5 Equivalent Values .. . 369
Self-Test ... 385
Challenge Problems ... 386
Case Study Planning Ahead ... 387
Sununary of Formulas ... 388
Glossary .. . 388
10 Compound Interest-Further Topics ... 389

10.1 Determining n and Related Problems . . . 390
10.2 Calculating i and Related Problems ... 398
CONTEN TS IX
10.3 Effective and Equivalent Interest Rates . . . 402

Review Exercise ... 41 3
Self-Test ... 414
Case Study Comparing Car Loans ... 415
Glossary ... 4 16
11 Ordinary Simple Annuities ... 417

11.1 Introduction to Annuities . .. 418
11.2 Ordinary Simple Annuity-Calculating Future Value FV .. . 421
11.3 Ordinary Simple Annuity-Calculating Present Value PV .. . 431
11.4 Ordinary Simple Annuities-D etermining the Periodic Payment PMT .. . 442
11.5 Determining the Term n of an Annuity . .. 448
11.6 Calculating the Periodic Rate oflnterest i U sing Preprogrammed Financial
Calculators .. . 455
Review Exercise ... 4 57
Self-Test .. . 458
Case Study Getting the Picture ... 459
Sununary of Formulas ... 460
Glossary ... 461
12 Ordinary General Annuities ... 462

12.1 Ordinary General Annuities-Calculating the Future Value FV . .. 463
12.2 Ordinary General Annuities-Calculating the Present Value PV . . . 471
12.3 Ordinary General Annuities-Determining the Periodic Payment PMT . .. 473
12.4 Ordinary General Annuities-Determining the Term n ... 476
12.5 Ordinary General Annuities-Calculating the Periodic Interest Rate i ... 4 80
12.6 Constant-Growth Annuities ... 482
Review Exercise .. . 488
Self-Test . .. 489
Case Study Vehicle Cash-Back Incentives ... 490
Summary of Formulas . .. 49 1
Glossary . . . 492
13 Annuities Due, Deferred Annuities, and Perpetuit ies ... 493

13.1 Simple Annuities Due .. . 494
13.2 General Annuities Due .. . 508
13.3 Ordinary Deferred Annuities ... 516
13.4 Deferred Annuities Due .. . 525
13.5 Perpetuities .. . 533
Self-Test . . . 54 3
X CON TE NTS
Case Study Planning for University ... 54 5

Glossary . . . 54 7
14 Amortization of Loans, Including Residential Mortgages ... 548

14.1 Amortization Involving Simple Annuities ... 549
14.2 Amortization Involving General Annuities . .. 569
14.3 D etermining the Size of the Final Payment . .. 576
14.4 R esidential Mortgages in C anada . . . 584
R eview Exercise ... 596
Self-Test ... 598
Challenge Problems .. . 599
Case Study Managing a M ortgage .. . 599
Summary of Formulas . . . 600
Glossary ... 600
15 Bond Valuation and Sinking Funds ... 602

15.1 Purchase Price of Bonds .. . 603
15.2 Purchase Price of a Bond When M arket R ate Does N ot
Equal Bond R ate . .. 604
15.3 Bond Schedules ... 621
15.4 Determining the Yield R ate ... 627
15.5 Sinking Funds . .. 629
R eview Exercise ... 643
Self-Test .. . 646
Challenge Problems ... 64 7
Case Study R aising Capital Through Bonds . . . 64 7
Glossary .. . 649
16 Investment Decision Applications ... 650

16.1 Discounted Cash Flow ... 651
16.2 N et Present Value . .. 659
16.3 R ate of Return on Investment .. . 671
R eview Exercise . .. 683
Self-Test .. . 684
Case Study To Lease or N ot to Lease? ... 686
Sununary of Formulas .. . 686
Glossary ... 687
Part 3 Comprehensive Case ... 688

Appendix I: Further R eview of Basic Algebra . . . 69 1
Appendix II: Instructions and Tips for Three Preprogrammed
Financial Calculator M odels . .. 704
Answers to Odd-Numbered Problems, R eview Exercises, and Self-Tests .. . 717
Index .. . 734
INTRODUCTION
Contemporary Business Mathematics with C anadian A pplications is intended for use in
introductory m athem atics of finance courses in post-secondary busin ess managem ent,
m arketin g, accounting, and finan ce program s. It also provid es a review of b asic
m athem atics.
T h e pr im ary objective of the text is to in crease the student's know ledge and skill in
the solution of practical financial and operational problems en countered in operating a
business.
ORGANIZATION
Contemporary B usiness M athematics with Canadian Applications is a teaching text using
problem-identification and p roblem-solving approaches. The system atic and sequential
development of the m aterial is illustrated by examples that sh ow a step-by- step approach
to solving th e problem. The d etailed solutions are presen ted in a visu ally clear an d
colourful layout that allows learners to m onitor their own progress in the classroom or
in independent study.
Each to pic in each chapter is followe d by F. Calcutatin1thenumericalvalue11f thecompoundina: factor(1 + i)•
practice exe rcises containin g numerous drill n..-..-....

CEJ.
. .,.., ......
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ＫﾷＩﾷ＠ t..«,.,,,...rd ......
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questions and application problems. At the end of En<.. .t..-.._.i ..... ＼＾ｦＢ
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ＨｬＫｯＩｴＮｾｲ＠ .... ....... , ....i""".Jdl
each ch apte r, R eview Exercises , Self- Test ,

C hallenge Problems, and a Case Study integrate
th e m aterial presen ted.
Th e first fo ur ch apters and App endix I
(Further R eview of Basic Algebra) are intended
for students w ith little or no background in algebra
and provide an oppo rtunity to review arithmetic
and algebraic processes.
T he text is based on Canadian practice, and reflects current trends using available
tech n ology-sp ecifically the availability of preprogrammed finan cial calculators.
Students usin g this book sh ould have access to calculators having a p ower function and
a natural logarithm function. The use of su ch calculators elim inates the constraints
associated w ith m anually calculating results using formulas.
In solving p roblems involving m ultiple steps, often values are determined that will
be used in further comp utation s. Such values should n ot be rounded and all available
digits should be retained in the calculator. U sing the m emory functions of the calculator
enables the student to retain such no n-rounded values.
W h en using th e m em ory, the student n eeds to be aware that the number of digits
retained in the registers o f th e calculator is greater than the number of digits displayed .
D ep ending on w h eth er the m emory or the displayed digits are used , slight differences
m ay occur.
Students are en couraged to use p reprogrammed finan cial calculators. The use of
these preprogrammed calculators facilitates the solving of m ost finan cial problem s and is
dem o nstrated extensively in C hapters 9 to 16.
XII PREFACE
NEW TO THIS EDITION

The Twelfth Edition of Hummelbrunner/H alliday/Hassanlou, Contemporary Business
Mathematics with Canadian Applications, includes updates based on changes in current practices
in Canadian finance and business and the needs of students and instructors using this book.
• T his edition continues to clarify the consistent approach to rounding rules. T he
Student's Reference Guide to Rounding and Special Notations (pages xix-xxii)
gives a clear explanation of the rounding conventions used throughout the text.
Additional Pointers and Piifalls boxes are placed in key areas to remind students about the
rounding conventions and exceptions in practice.
• The text and solutions manual have been thoroughly technically checked for accuracy
and consistency with the rounding approach.
• Tables, ch arts, and further diagrams h ave b een added to enable the learner to visualize
the problems and the solutions.
• Numerous n ew examples and exercises have been added.
• To help students better understand and solve systems of linear equations, the order of
presenting concepts has been changed in Chapter 4. We first introduce an easier con cept of
graphing linear solutions and continue with algebraic solutions of systems of linear equations
with two unknown variables. Finally, solving systems of linear inequalities is presented.
• T h e cost data in the m ain example for explaining break-even analysis in C hapter 5
have b een revised to eliminate confusion and help students understand various costs
of doing business, p erform cost-volume-profit analysis, and calculate the break-even
point in a business.
• Canadian references have been emphasized in Business Math News Boxes and website
references.
• Interest rates reflect current investment and borrowing rates.
Many examples and exercises h ave been updated, rewritten , and expanded. To enhance
the building-block approach, exercises are ordered to link the topics and the solved
examples. H elp references h ave been expanded to link selected exercises to solved
examples.
Specifically, in Chapter 1 (R eview of Arithmetic), prices, salaries, and wages have
b een updated. Revised rates and calculations for GST/ PST / H ST h ave been included to
incorporate n ew legislation for 2018 and property tax terminology and valuations have
b een updated. Weighted average examples and exercises h ave been expanded and
additional drill questions have b een added throughout C hapter 1. The Business Math
N ews Box on National Salary Comparisions h as been updated and moved h ere from
Chapter 3.
In Chapter 2 (R eview o f Basic Algebra), the chapter-opening vign ette emphasizes
w hy business students n eed algebra, algebra explan ations have been expanded, and new
diagrams and Pointers and Piifalls clarify these fundamental approaches. Language and
m ath scaffolding strategies have been emphasized in this chapter to improve students'
understanding of key con cepts and relationships. Calculator solutions h ave been
introduced for several examples and formulas have been simplified.
In Chapter 3 (Ratio, Proportion, and Percent), a consistent approach for calculating
proportions has been introduced , and the percentage-base-rate triangle has been included
as a useful aid for determining percentages. Sections in the chapter have been re-ordered
to improve student understanding . For example, instructions for calculating the base
appear before calculating the percentage rate. C urrency conversion rates, prices, C PI
numbers, and personal incom e taxes have been updated. A new Business M ath News Box
highlights the variability of apartment rental rates in m aj or Canadian cities.
In Chapter 4 (Linear Systems), the order of the first three subsectio ns h as been
chan ged to first introduce graphing linear equations and then explain algebraic solutions
PR EFACE XIII
to linear systems in two variables. T h e substitution and elimination methods for solving
the p oint of intersection of two linear systems has been emphasized.
The order of Chapter 5 and Chapter 6, w hich was switch ed in the Tenth Edition,
is retained to improve the flow of content from Linear Systems (Chapter 4) to Cost-
Volume- Profit Analysis and Break-Even (Ch apter 5). This chapter h as been changed
significantly w ith a compreh en sive example that starts at the beginning and con tinues
throu ghout the chapter. In C hapter 5, a new Business Math News Box ties the concepts
learned in this chapter to the legalization of m arijuana in Canada. The C hapter 5 op ening
vign ette appropriately includes an example that connects with the new Business Math
News Box presented later in the chapter. The number of formulas has been reduced , and
solutions to examples use a simplified approach for calculating break- even .
Chapter 6 (Trade Discounts, Cash Discounts, M arkup, and M arkdown) explanations
and diagrams have been revised to clarify key concepts. Pointers and Piifalls boxes provide tools
to help students rearrange form ulas, determine the number of days in a discount period, and
calculate markup. A sample invoice demonstrates payment terms and cash discounts. EOM
and ROG examples, are retained to help students understand the terminology and concepts
as they are being used in practice by businesses. Beginning in this chapter, instructions in the
text that previously asked students to "find" specific variables have been replaced by m ore
mathematical language such as "solve;' " calculate;' and " determine."
In Chapter 7 (Simple Interest), a n ew B usiness M ath N ews B ox o utlining the
perils of " buy n ow, pay later" plans has replaced an outdated box based on the Canada
Savings Bond Program. D ates and interest rates have been updated and n ew exercises
have been added, w ith exercises referen ced to examples. Additional tools for ch oosing
focal dates and calculating number of days h ave been added .
In Chapter 8 (Simple Interest Applications), a n ew op ening vignette leaves way for
a Business M ath N ews Box focused on calculating the annual percentage rate of ch arge
for payday loans. Comments on credit ratings, credit scores, h om e equity lines of credit,
an d n ew exercises calculating unpaid balan ces have b een added. Treasury bill in terest
rates have b een updated to reflect current rates. A new subsection o n commercial paper
has been included in this edition .
In Chapter 9 (Compou n d Interest- Future Value an d Present Value), visu al
explanations for drawing timelines an d selecting focal dates h ave b een expanded. The
introduction to Future Value, and explan ation of the p erio dic rate of interest, have b een
simplified . The relationship b etween n and m has b een clarified . Additional examples
and qu estions using weekly and bi- weekly compounding periods have b een included,
along with questions featuring chan ging interest rates. A n ew B usiness M ath N ews B ox
using data fo r fixed- and va riable-rate G u aranteed Investment Certificates (GICs)
provides exam ples of escalating interest rates.
In Chapter 10 (Compound Interest- Further Topics), formula rearran gem en t is
emphasized. A Pointers and Pitfalls box has been added to explain how to calculate the
" true cost" of bo rrowing. Drill questions from previo us editions for calculating effective
and equivalent interest rates h ave b een added back to the section exercises.
In Chapter 11 (Ordinary Simple Annuities) and in Chapter 12 (Ordinary General
Annuities), n ew Pointers and Pitfalls boxes have been added to h elp students set up
equations at the focal date. Advanced questions have been added to the chapter exercises,
including changes in interest rates and changes in paym ent size, as well as calculating the
size of the final payment in an annuity. The updated Business M ath N ews Boxes feature
credit card minimum paym ent myths and w h ether or not it is better to lease or buy a car.
In Chapter 13 (Annuities Due, D eferred An nuities, and Perpetuities), explanations,
diagram s, and calculations for annuities due are simplified. N ew examples with diagrams
have been added , including referen ce to investments in preferred shares. New Pointers
and P itfalls boxes remind the reader h ow to calculate the number of paym ents in an
XIV PRE FACE
annuity, and how to calculate present value of p erpetuities w h en the size of the paym ent
increases or decreases at a constant rate.
In Chapter 14 (Amor tization of Loans, Including R esidential Mortgages), a n ew
section w ith a diagram develops the skills to calculate the interest, principal, and balance
for a p eriod, and bridges b etween calculating the p aym ent and constructing the
amortization sch edule. The introduction to residential m ortgages h as been updated to
reflect current legislation on mortgage insurance and stress testing. The "sinking funds"
concept covered in this chapter of the Eleventh Edition is now removed fro m this
chapter and included in C hapter 15. Examples and exercises have b een reordered and
clarified to enhan ce building-block learning.
In Chapter 15 (Bond Valuation and Sinking Funds) , explan ation of basic concepts
has been expanded to answer the "why?" and " how?" qu estions. The order has been
changed, w ith a focus on calculation of bond price under different conditions. An
introductory sec tion h as been added for concept compreh ension. Calculating the
purchase price of a bond has been sep arated into two sections based on w h ether or not
the market rate equals or does not equal the bond rate. Instructions and examples have
b een provided on how to use the Texas Instrument BA II PLUS calculator to calculate
the purchase price of a bond on an interest p aym ent date or between interest paym ent
dates. The " sinking funds" concept that was introduced in C hapter 14 in the Eleventh
Edition is now included in this chapter to help students u nderstand how corporations
plan to have funds available to pay back their issued bonds on the m aturity date.
In Chapter 16 (Investment D ecision Applications), explanations begin the section
on Net Present Value, followed by introductory, then more advanced , applications.
R ep etitive calculator instructions have been eliminated. C omputing the R ate of R eturn
by m anual m eth ods has been condensed and n ew visuals have been added. Instructions
for using the cash flow analysis of the Texas Instrument BA II PLUS finan cial calculator
and Exc el's NPV and IRR functions have been in cluded , w ith an example for each
function to reinforce learning.
COMPREHENSIVE CASE STUDIES

Comprehensive case studies for each p art of the book have b een created. T he
questions within each case study have been separated by chapter or group of ch apters to
facilitate th e use of these case studies by those institutions that include only some of the
topics in their course syllabus. W ith the questions separated and identified by chapter,
these institutions can use p art of th e case study in their courses.
Part 1 M athem atics Fundamentals and Business Applications
Ti/ D ebt D o Us Part host G ail Vaz-Oxlad e has m ade it h er mission to h elp couples w h o
are h eaded for disaster get out of debt. Questions for each of C hapters 1-4 are included.
Part 2 M athematics of Busin ess and M anagem ent
A sportin g equipment m anufacturer and retailer, SportZ Ltd. , is based in Alberta.
Questions for each of C hapters 5-8 are included.
Part 3 M athem atics of Finance and Investment
Based in Ontario, Lux Resources Group, Inc., rents and sells con struction equipment.
Questions for each of Chapters 9-16 are included.
In general, interest rates used refl ect the current economic climate in Can ada.
Calculator tips and solutio ns have been updated or clarified. Spreadsheet instructions
and Internet website referen ces h ave b een updated . Piifa lls and Pointers h ave been
included to assist in performing tasks and interpreting word problems, and sections have
b een rewritten to clarify the explanations. M any more word problems have been added
and references to solved examples increased . Business M ath News Boxes and Case Studies
PRE FAG E XV
have b een updated. Examples involving both business and personal situations are
included. The pedagogical elem ents of the previous edition h ave been retained. In
response to requ ests and suggestions by users of the book, a number of features for this
edition have b een included . They are described next.
FEATURES
UPDATED! • A new colourful and student-friendly design has been created for the b ook, making it
more accessible and less intimidating to learners at all levels.
UPDATED! • Any preprogrammed finan cial calculator m ay
ｦＮ｟ｴｫｊＬｔｗｾｬｯＭｕｴ｟ＮｩＭｾ＠
-
TIMlll
b e use d, but th is edition includes extensive
instructions for using the Texas Instruments
BA II PLUS finan cial calculator. Equivalent ..__,,.._.
"'"_"._,.._ - GZ!)@Z!)
ﾷｾ＠ III ﾷｾ＠
ｾ＠
Gill
III
ｾ＠
•M•
ｾ＠ｾ＠ 01
instructio ns are given in Appendix II for the
Sharp EL- 738C and the H ewlett-Pa ckard
1Obll + financial calculators. io ｾ＠ •(
• E ach p art opens w ith an introdu ction to the Compound Interest-
FurtherTop1cs
1
M1'll ｾ＠ｾ＠
upcoming chapters and a discussion of the
rounding conventions that are relevant to these LE ARNING OB J ECTI VES
chapters. :-=:..'"':'.::::::.:.= ｾＬＭＮ＠

A set of Learning Objec tives is listed at the ·=----·-·-
·-----·- ｾ＠
r.1ｾ＠ '_,
beginning of each chapter. The corresp onding ｾ＠ 5 "
ａｾ］ｉﾷＺＮＭ＠ .Ｍ］Ｚｾ＠
Learning Objectives are also indicated for each
-.- ......
. -1111 ...
........-·*"---·
- ... . .
ＭﾷｾＱＮＢ＠
_ _ , _ _ _ _ _ . _ , _ _ . , . , . . . _ _ _ _ 11111
Review Exercise, allow ing students to see

w hich aspects of the chapter they have mastered. ·----
--..
·---
___ ..---·----·-·-"'-...........
--....,-.....,,.,_.·--·--................. ___..
....
.. ... ｾ＠
ＭＮＬｾ
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,_...... ...._
ｾＭﾷ＠ ....
ﾷｾＱＭＮＬ＠
• Each chapter open s w ith a description o f a

situation familiar to students to emphasize the BUSINESS
MATH NEWS lululemon athletica inc. Announces Third Quarter Fiscal
practical applications of the m aterial to follow. 2018 Results
ｬｵｫ｡ＮＭｴｲｯ＼ﾥｩＬ､ｊｎＩＧ＾･ｦｾﾫｮｹｰｭ｟＠
• A Business Math News Box is presented in tt>lyunolft'COn!P""th

r-JNMdh<..iq...rt<ttJ .. v-......... Columbu, lui..i.o- ......,"'...... ....i .... " " - a,..,,.,
ｾ＠ ......,ltu< ...... ,.- ...,.....
.iy ................. >nd ............. t.> ............ .., MI"'""- fU;,., ll:.
every chapter. This element co nsists of sh ort ＺｾﾷｔｨｴｶｯｧｬＮｰｮ｣ｾ＾ｫｍＧ＼､
Aldo<Jughiht ....... 11"",.... ＢＧﾰｙＭＮ＼ｾｩ＠ pltlo<>-

Ｑｨ＼ＢＧＱｴ｟ＮｐｾＭｓｏＥ＠
........
ﾷＭｾ .. -1ox...tJ .. m.,o<<•....... c...J.i.,t1><U...!<'dS..O....... -...... N .... z..un.J,....iiht
exce rpts b ase d on m at erial appearing in <""'f'O'lil.•-·"'"""'-
u ...ＮｊｋＬＭＮＬｾ｟ｌｩＭｯＧｗｐＢｕ＼ｨ＾ｴｰｬＩ［ｲｵ｢､＠
Thtt><h ....... ..,.,.,............. Ｍｌｬｵｮ＼＾､ＮＬｦｾﾷＧＢｐ＠

n ewspapers, magazines, or websites, followed wn.,,, '" 200\l. Mtt """""'!I ••bt.!·<Wt &... q...,.tt. .............., ..o<L 1hx w. P""""''
.......... ....,..,,....... ,.,.,.. .... .i....·,..-d!,,...,..o.. ,.. ,......._,....-... i...i. ."""'..,.,......t•
W<tt..,,,.,.,,'""'"
_-_..,,,...r,,,.., .. ...,.,.,.,,,...,. ..
,..,:zo1s,.>1ho"""".,...._'"""'"""'"SUSl476_9.,.;n-
by a set of questions. These boxes demonstrate 1n..i...c..-.p>ttJIOUSM21 .l •, _ •l><)'<>tb<ll::...

.....ＺＮ］ｾＷＡＢＧｯＭ＠ It >l;,, ...... ....,_<d.....,·.-i --
n..1<>1.........g ....... -..m:...ny<1n<CK1o1U<J"" .................. ..-.,

h ow widespread business math applications are -n>ll..._..UtoJttP...,._$69.00CJ.D(....,$88.00)
- ..·,c... ｳＮｩｊ＾＼ＱｲｴｬＴＹｃｄＡｗＬｉｌｾＮＰｊ＠
M.,.>ea.J.>SS Ttt•T"I': $24.00CAD(...,.l!.11.00)
in the real world. M.,.\ ......,..,..,,,.J><U.: l#OOCAD(,....$83.00)
• The Pointers and Pitfalls boxes emphasize ＱＭｾＭﾷＢｬＧ＼､ｵｯ＠
ｯｻＲＰｌＷｾＢＧＮＬＭｬﾫｊｴ＠
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-...-o{21"""''fWT'l"'""""rd-·"'f..c>J2017. c.a...a....................... fot . . ｬｨＮｲ､ｾ＠
! . C>k:uLll<<-<<>mm<f<<_......,.,...... ＮＬｯｻｵｌｾｩ＼ｴ､ｰｭｊ＠ ..
good practices, highlight ways to avoid common l . C>k:uLll< U...,.. o{.1<><"""' IOt
i;nt; ｛ｾＢＧ＠ ldtt1..ul pll<.,)
•><• o{iht ' - ,...,_, ..,.. - . i ...>Jn . . -,... nuJ< """.,...,.-
errors, show how to use a financial calculator ｾＭｾＺ［ＮＢ｡､ＧＧＢＧｬＡｩ＾＠ ... "'llP""·•AdlhO!do<"""o{'tw"'°"""'\
• •l><m."lu ＢＧＮＬｩｏｯｾ＾ｲｴｨ｢ｯＡｴｯ＾ＡｍＧｏｩｊ［ｴＡｨ＼ＢＧﾰｌｬﾫｦｈＢＧ＠
efficiently, or give h ints for tac kling business

m ath situations to redu ce m ath anxiety. POINTERS I
ＦｾｾＺｩＭ［ｕＮｬｒｅ＾ｋｖｎＴｯｻＱｔＢａｕｐｬＮｕｓｾＮＬＭ＠
• Numero us Examples with worked-out ＮＬｭ｢ｴＦＭＱＢＧＪ
ｭＮ
ＱＭＢＧｱｯｵｮｭｹＬ｟Ｎｾｩｓ
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ＭｬｮＮ｟ＢＧＭｆｃｗＱ＼ｴ､ｯｕｉｄＺｊＰｰｾｦ＾＠
ＮｬＧｦｔＢＭｯｧｎ
ＮＱｄＭＮＡ｡ｬｯＺｷｭｆＢ
ｑＮＭｴｯＬ＼＾Ｊｵ
Solutions are provided throughout the book, Ａｅｬｾ＠ FC --.oos m

VC •J0.001 ! 3 CD
offering easy-to-follow, step-b y-s t ep l'f'T • O( S
P • 50.00( 5 J CD
CD
instructions. ＨＲｚｉｑＭｾＳＲ＠ ......
UPDATED! Programmed solutions using the Texas

Wb•""'>«w»ul.Mnlv1"><1'<nfo,,.,....-.o{M-o(J..-..:JOOO*'kl<.111""
Instruments BA II PLUS calculator are o ffered bf_o{..... ,..,. ........... .. 7'"<""'f"'d"dtJqwt1<tfy'

PMT •:!0000.00-. o•S; ｴｾＮ＠ P/Y • L C/Y ＭｾＮ＠ l/Y•7
; • 7 • 1.7S%•0.011S
for most examples in C hapters 9 to 16 . Since
,.1 .0 175' - l • l.07185') - 1•0.0718:.9•7_185'N
this calculator display can be pre-set, it is ｆｖＨＭＩＲＰＮＰｃｾＺ［＠
Ｑ
ＩＨＡＰＷＱＸＵＹＭＺＭＮｾＮｾ＠
su ggested th at th e learner set the display to -20000.00(s.nml9)(1.011m)
• 1\HU.1869(1.071839)
sh ow six d ecimal p laces to m at ch the Ｌｬｋｕｉｕｓｏｴｬｾ＠
ｲｯ｣ＮｎＢｭｬｴＩＨｓｐＱｙｬＮｃＯｾＩＷｅＩｏｾ＠
m athem atical calculations in the body of the ＲＰｃＡＺｊｅＩｳｾ＠ mm.7m I

n..><cumul0!«1...i...Ji.... r.... ,......... 112J7l7.7S
text . Both mathematical and calculator solutions

XVI PRE FACE
fo r all Exercises, R eview Exercises, and 11.1 INTRODUCTION TO ANNUITIES

A. Basic concepts
Self-Tests are included in the Instructor's In 1h1S 1cx1l><><>k.•n annui1y ,..,..,;"' ofcqu.al p:r,·mm... m•dt •• p<'fl0d1< """'"''' "·
Tl>r kngth oftmir """'""" th<- ＢＧＧＢｾ＠ p>'f""""",. cilkd 1hr payn1.,n1 i nlnYal.
Solutio ns M anual. A n icon highlights o r p •pn.,nt pui<>d. Tl>rJ..ng1hofnmrfromrh•brg1nnrngofth<-fontp>ymrn1
,.,,,,.,.,.,.t,orhccndof1hrW1p•yn..,n11n1,,.,.,.,.t,.c..Ue<lthr 1..rm.of a nannui1y
TI>< •mount of r><h of the R"gulir pz)'ln•nt• " c..Jkd the ｾｲｩｯ､ｩ｣＠ p a ynun t . or
info rmation o n the use of the BA II PLUS p niodic...,n t
ｗｨ｣ｮｾｲｵｧＮｩｷｴｹｊｕＬ＠ｲｨ｣ｴｭｮｧｯﾣｾＮＬ＠ mmtbrconudcttd
llcp<"ndmig<lfl rhc ("'l"""'l' ond rc-gu!.nty ofM=cnn, d1ifcKnt f<><muln will be ...nl
calculator. in """'"If
ca:ubnono. Whcu • p•pnnn" nude only once. n "trc><cd .- nthcT the
ptt>c'fltnluc-,P\f.orrhc-futuR"\"l""'.FY.of•c.S.-ul.it1on. Whcnthc= •R"•w::rioof
P>J'ITIC"nl>, "mu>I be d<tctmmcd 1fthc J>'}-.ncnn • tt ｾ＠ •mounn•nd...., µ.id., th.<
• Key Terms are introduced in the text in umc Im><" wlfh lll c.ch poy1ncn< mta>..:I oflhc tarn. lftl>c p;l)'1><"n< n ＼ＧＡｾＮｩ､＠
<><lic.1< ""'"tfit "dlc p<'r10dicp:ip>lC"n<. PMT. of:in aou1u11ycal<ui.uon. Tl>el)-pnof
pc<1-
:innu1<1.. ...,dncril>cd.,S«tionllbclow.
boldface type. A Glossary at the end o f
each chap t er list s each t erm w ith its
GLOSSARY Dl-"'...i ..o1 ... o f -•4olla< perporio.d 1itt
definitio n and a page reference to w h ere D H.count fut o r
AC<"11mula1«lnl ueof-4ollarp.,period sn °""'" par-ou the p<>nK>n of tl>c purdwc J>Ti<"<"

the term was first defined in the chapter. Accun>ulati on f•c:tor for • nnuitiH ｴｾｩ＾ＢＧｐｊＱｨ｣､｢ｹｰｵｲ＼＠
mcnt {p. 4JJ)
.. :inimtWp:iy-
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• M ain E quations are highlighted in the ａＮｮｵｬＱＺｩｯｮＬＮｍｔＢＱｬｾｕ＾ｴｵｬｬｹ｣ｱｵＮｩｮｴ＠

(orn.mpo•mdmg) P""od 11 diil"r...,,. irom the M"-
mcnt intm..:l (p. 419}
O.di..a.yo ....ul1y ..,•nnu11ym,..hochthcM·mcn<>
chapters and repeated in a Su mmary of nude •
A.n•uhy u <tal• .m .umu11y for ,..hKh the t<Tm n
＼ｱｾ＠ pcnodic nmc mtcrnk t)> 4 18}
= "'*:it fh< end ofrKh ｍｾｮ｣ｴ＠ mtcn..:I (p. 418)
Poy. .en1looun1ol thckngthof1inl<"ben.Ycn!IUC-
fucd(Jo.419)
c«<""l'"Y""'"" (P. 4/S}
Fo rmulas at the ends of the chapters.
• A list of the M ain Fo rmulas can be found
on the study card bound into this text.
<:ONTRIKlJTION MARGIS
CM PER UNIT• SI' - VC

- SUUNG PRICE
-
VAAJAIJ.LE <:OST
ＭｦｯｲＱＮｵｬｾｓＮ＿＠
• An Exercise set is provided at the end of When 1he conmbutton margm per llllll IS nmluphcd by the number ofumu. the result
is the total contribution margin
each section in every chapter. In addition , ｔｏＮｕ＼Ｚｾｉｈｔｉｏｎ＠ (5EU.INGPRl<:E V,\11.JllULE<:OST)

MARGIN - 1'£1l UNIT - PER UNIT x \'ot.UME - formula 5 .l
each chapter contains a Review Exercise or. TOTAL C"..M • (SI' - VC) X X
set and a Self-Test. Answers to all the Us.mg the conmbuuon nurgm format. Formula 5.1 can be rcwrmcn :as
I(SI' -VC)X x - FC - PFTI ｨｲＱＮｵｬｾｓＮｕ＠
o dd- n u mb ere d E xerc i ses, Rev i ew

Exercises, and Self-Tests are given at the
back of the book. MyLab Math ....,.
ＺＮ［ＡＧｩｏＢＬｾ］Ｍ ___ ...... ･ＬＺ｟ｾＮＧＡＪＢ＠
Also include d in thi s e di t i o n are REVIEW EXERCISE Ｈ＼ＩＮｴ､ｷＭｾ＠ ..... ,.,........ ,,.,o1..,_1........ Ｗ
>ndcompo..00.ng o. .X-moorhly:
ＮＷｾＧＡＰ＠
(d)"""""l"''->ltmro6'0rompoun.J<dqwiurir.
references to solved Examples in several l . UJ9 A1,.iut""""n.il'"'r of1nt<,....<0m-
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chapters, w hich are p rovided at the e nd ｀ＡｬＮｬＰＸ
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'/<"'·CO!l•><Kmd<Jqual1<"fty.
o f key exercises. Students are d irected to G l. ｾＱ

ＺＢ［ｾ］＠ ...ｕＺＮ［ＬＢＡｩｾＷ＠ fD u-= Comf"'"""'fft<""'..,,,....1,..,.of
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specific examples so they can ch eck ｾＮｬＰ
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th e ir work a nd review fund amental s1100. ＬｲＬｾ＠ ......... 1.25,..,°""""'"""'
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p roblem types. ＤＭｾＮＺ］ｾ＠ｾｭｊＺＬＢｴＮ［ｬＪＧＱｯ＾､＠
><8"<on•p<>•u1J<dmoochly' n. LOO P•rr..:t 1>&0)0010 .........,_ Wh><h oilh<
• Exercises and R eview Exercises that are 1 . LOO l!lh..t...,..,....i,.,..o1,,,........ornpoun<1tJ blki...'V>Jopoon• "-'ldh<choooc-'
ｾｨｬｹ＠ .. <qWV>I<. . 10,., <If«""" .... of Ｚｾ＠Ｚｾ］［ｩＮＬｴｹ＠

m arked w ith a @\ are also available o n $ 1. l OO l!lh..tnomm.>1..uo/1111<...,compounJ<J (<) ｊＮｾＧＡｏ｣ｯｭｰｩｱ｜ｕｲｔｬｹ＠
r=:ir"«!W''>irn<to•n <lf«nV<<><ro( (d) l .lS%compounJ<dmon11>ly
M y Lab M ath. Stud ents have e ndless ｬＮｬｬｊＸＰｃＢｾｴｨ＼ＮＬｩ＾ＱｯＯＮＬ＠

(ti 1r.. Lile (• ) lklw.....,,. yun "di 11ulr fot17500
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oppo rtunities t o prac tise m any of these ＢｬＧｒ＼ｾｱｵ｡ｮＮｴｹＺ＠Ｉ
{b) >1"·hothmo...-y">IJollhlo .. fu..-y<.,.,.
Ｈ｢ＩﾰＢＱｴＮｰ＾＼､ｯｩｲｭｾｍｙｬＬｗ＠
,,_c.,...,,.,,.-iqounrtl)-'
rnmpo......w1tto>1->nnwllj'
questions with new data and values every {c) ri"rhr<fl"ttu..,.......i ..... r:J:,.,,,,.,..,.11.N (<) ｾＺｯＺＡＢＬｾｩＧＮＺｾＺ＠
; n.Jrompoun.J.ng .. 00..........,,hly <ompoUl>JoJmon<hly'
{d)1hx .. rqwV>l<tKto8%<omp<1UnJ<d
time they use M yLab M ath. """""
17. l lle M•...,.,.t1onuL,,.....,p,tfl_,___,,
l")"ln«MofL'>OOOdLl!"1n1W><moo><l•and>p.y-
t) HI. ｾｮｾ＠ C"iW..."' <h< n<>n>HUJ ..,......i ,,,,,. oi lllrnlofJl300"' ' 'l'"'·lfM>t1...U..>M""><DI
oiSllOJ_.. ....... <houl.lh<...>b >.,..OOIJ
• A set of Challenge Problems is provided {a) >1\ll"h<<hSl SOll \lltllgr<M"10Sl8«11m""'•
ｹ＼Ｂｮｾｭｯｴｨｬ［＠
M·m<nroiS1700H__,,., ..-om.
11%«>n...,......Wqu.>nniy'
in each chapter. T hese problem s give users fb) >1whorh1t><m<"J· "'..Udoubl<11t><WD)""" 'r
con1po......w..,....,..ny,
the oppo rtunity to apply the skills learned

in the chapter to questions that are pitched ｭｬｄｉｅｾＭｾＺｩｓｾＺｩｩＡｬｬＧＮＺＺｩｾＬ＠ ....ｾＺＭ［ｍｹｌ｡｢＠ Math
at a higher level than the Exercises. S 1.Wh... 1Sth<H>.>IU'ltyY>IHCol:ifi•"<'-)'\".UIC<1"d<"J'<"'Oof$5000:113.5% c<><npoun<kd
"'tn.1- >nm..Uy> H ow nlUCh '""'""' Wd the dcp:>•>< c>rn>
2.llow much ""'U • rcg»«l'<"d "'""""""nt "'-rng>d<p<><ll of JI.SOO be "-onh <n
Sixteen Case Studies are included in the ｬＵｽＢ＼ＧＳＮｾ｣ｯｭｰｵｮ､ﾫｱ＾ｹｈﾷｭ｣ｨｯｦｴＺｩｭｵｮｲＢＧＧｾＧ＠
l . RC<'Cril"""'"nudo•truitdq>oootofSSOOonOctok<Jl.20CM.tobr", thduwn
book, at the end o f each chapter. They onR<'«<<twcnty- fintbuthdiy<llljuly31.2015. Wt..r"..Ubrthc,.,l...,ofthc

d<po.11on1t..rd.1e"7"'<ompoundcdqu.>ncrly1
present comprehensive realistic scenarios

followed by a set of questions and illustrate CHILLEHGE PROBLEMS
som e of the important types of p ractical 1. 1\o"O<,,.._... ,...,.l"""'•"""'•,_of •h<"mtl"'<•°'.......,....i""r"'"'"'

,,.,,,00,,,115"'116. lly"luol"'<..,.."..,...,.l"","'t<do<<d<><bomt'
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r• p:iw ...,.,..,.,. lh>I ol <h<
appli catio n s o f th e ch apte r m at erial. • ＼ｬｯｴｨ＾ｮｧｵｴｾ＠ Th< pur r olth<bl><k ＢＧｾ＠
- . wi....ih<onico\\'>lr.&..1.>1,...,i;,.....i......,w......i...oiP"'noi1.,. ,,.,,
｣ｯｬｵｮｊＮＬ＼ｾＢｔｨＱ＾ﾫ｢ｹＨｦｴ＠
Six t een additio nal case studies can be ｾＬＮｯ＠

oomb<tol,,..-.olbl.....ocl...nl<•••onguuloodt.
......_ .... ,.....,"'.............. "'-·"'-k""'k'"''...
1. Folo:>\\"l(!;•llN.JKtt..... h<r........i.at..,. ..1uop..<.... '"".........'OUld ..
,...,..,,...._ ... _ _ _ ....,... ... ,....tt..tt ... htr<wopul'-">r)"ltwl'
found on M yLab M ath .
PREFA CE XVll
TECHNOLOGY RESOURCES
Mylab Math
MyLab Math from Pearson is th e world's leading online resource in mathematics,
integrating interactive h omework, assessment, and media in a flexible, easy-to-use
format. It provides en gaging exp eriences that personalize, stim ulate, an d measure
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XVll l PREFACE
ACKNOWLEDG M ENTS
We would like to express o ur thanks to the m any people w h o offered tho ughtful
suggestio ns and recommendati ons for updating and improving the book, including the
following instructors:
Ben Brown , Vancouver C ommunity College
H elen Catania, Centennial College
M argaret Dancy, Fanshawe C ollege
Ana Duff, University of O ntario Institute of Technology
Frances Ford, New Brunswick Community College
Imad H assan, Algonquin C ollege
M ariana Ionescu, George Brow n College
Steve Kopp, Western University
Sylvia A Leskiw, M acE wan University
D eborah Sauer, C apilano C ollege
M arnie Staffen, Cambrian College
Nii O doi Yemoh, Humber College
We would also like to thank the m any people at Pearson Canada Inc. who helped
w ith the development and production of this book, especially to the acquisitions editor,
Keriann M cGoogan ; the content m anager, Nicole M ellow; the developm ental and
media editor, C harlo tte M orrison- R eed; the proj ect manager, Pippa Kennard; the copy
editor, Susan Bindernagel; and the marketing manager, Euan White.
D eveloped by Jean-Paul Olivier, based on the textbook authored by Kelly H alliday and
Ali H assanlou
Universal Principle of Rounding: W hen p erforming a sequence of operatio ns,

never round any interim solution until the final answer is achieved. O nly apply round-
ing principles to the final answer. In terim solu tions sho uld only be rounded w h ere
common p ractice w ould require rounding.
Note: Due to space limitatio ns, the textbook only shows the first 6 decimals
(rounded) of any number. Star ting in C hapter 11, because the calculator display m ay
no t have sufficient space for all 6 decimals, as many decimals as possible will be shown.
However, the Universal Principle of Rounding still applies.
Part 0 Section 1.2

1. For repeating d ecimals, use the notation of placing a perio d above the repeating
t
sequence. E. g., = 0.333333 .. . = 0.3
2. For terminating decimals, if they terminate w ithin the first 6 decimal places, then
carry all the decimals in your final answer.
3. For non- terminating decimals, round to 6 decimals unless specified o r logically
sound to do so otherwise. If the final digits would be zeros, the zeros are generally
not displayed.
4. Calculatio ns involving m on ey are rounded to 2 decimals as their final answer.
Interim solutions may be rounded to 2 decimals if the situation dictates (for example,
if you w ithdraw m oney from an account) . If the calculation does not involve cents,
it is optional to display the decimals.
Section 1.3
1. C alculations involving percentages will only involve 4 decimal positions since there
are only 6 decimals in decimal format.
Section 1.5
1. H ourly rate calculations for salaried employees require that all the decimals should
be carried until the final answer is achieved. If the solution is to express the hourly
rate or overtime rate itself, then rounding to 2 decimals is appropriate.
2. Overtime hourly wage rate calculations should carry all decimals of the overtim e
rate until the final answer is achieved.
Section 3.7
1. Larger sums of money usually are involved in currency exchanges. T herefore, the
two decimal rule for m oney is insuffi cient. To produce a m o re accurate result,
currency exchange rates need to carry at least fo ur decimals.
2. It needs to be recognized that not all currencies utilize the same decimals w hen
exp ressing amounts.
(a) Final currency amounts for the Canadian D ollar, U. S. D ollar, British Pound,
E uro, and Swiss Franc should be rounded to the standard two decim al places.
(b) Final currency am o unts for the Japanese Yen should be rounded to the nearest
in teger, as there are no decimal amounts in their currency.
XX STUDENT ' S REFERENCE GUID E TO ROUNDING AND SPECIAL NOTATI ONS
3. Price per litre of gasoline is gen erally expressed to three decimal points ( 129. 9\t/ L
= $1.299/L)
Section 3.8
1. As indexes are similar to p ercentages, an index will only have 4 decimals.
Part • Section 5.1

1. When calculating b reak-even units, rem ember that the solution is the minimum
number of units that m ust be sold. As su ch , any decimals must be round ed upwards
to the next integer, regardless o f the actual valu e of the d ecimal. For exam ple, 38.05
units m eans 39 units m ust b e sold to at least break even.
Section 7.20
1. t is always an integer. It is important to note in this calculation that in most instances
the interest (I) earned or charged to the account has been rounded to two decimals.
This w ill cause the calculation of t to be slightly imprecise. Therefore, w h en
calculating t it is possible that decim als close to an integer (su ch as 128.998 days or
130.012 days) m ay sh ow up. T h ese decimals should b e rounded to the n earest
integer to correct for the rounded interest am ount.
Part • Section 9.20

1. In determining w hen it is app rop riate to round, it is important to recognize that if
the money rem ains inside an accoun t (deposit or loan), all of the decimals need to
carry forward into the next calculation. For example, if a bank deposit of $2000
earns 6% p.a. compounded m onthly for 4 years, and then earns 7% p.a. compound ed
quarterly for three more years, then the money rem ained in the acco unt the w h ole
time. W e can solve this in on e step as follows:
F V= 2000.00 (1.005) 48 (1.0175) 12 = $3129.06

O r two steps as follows:
FV = 2000.00( 1.005) 48 = $2540.978322
F V = 2540.978322 ( 1.0175) 12 = $3129.06
Note that the first step is an interim calculation , fo r w hich we must carry forward
all the decimals to the n ext step w h ere the solution can then b e rounded .
(a) If m on ey is w ithdrawn / transferred from th e account at any time, then only 2
decimals can be carried forward to any furth er steps (since a currency payout
can only involve 2 d ecimals).
Section 9.4C
1. In promissory notes, the FV solution in the first step must be round ed to 2 decimals
b efore discounting as this is the am ount of the debt that w ill b e rep aid on the
m aturity date.
Section 9.58
1. When calculating equivalent values for m ore than one paym ent, each p aym ent is a
sep arate transactio n (on e co uld m ake each paym ent sep arate from any oth er
p aym ent) and therefore any equival ent valu e is rounded to two decimals b efore
summing multiple p aym ents.
STUDENT ' S REFERENCE GUI DE TO R0 UNDI NG AN D SPECI AL N0 TAT I 0 NS XXI
Section 10.1
1. When determining the n for n on-annuity calculations (lu mp-sum amo unts),
generally th e solution would not be rounded off since n can b e fractional in nature
(we can get 4.5632 quarters).
(a) However, w hen n is discussed, th e n may be simplified to 2 decimals so that it
is easier to communicate. For example, if n = 5.998123 years this would mean
a term of slightly under 6 years. H owever, w hen discussed it may be spoken
simply as a term of 6.00 years. Alternatively if n = 17.559876 months this
would m ean a little more than h alf way th rough the 17th month. H owever,
when discussed it m ay be spoken as a term of approximately 17.56 months.
(b) An exception to this rule is w h en the n gets converted into days. As interest
generally is no t accrued more than daily, a fraction of a day is not possible. The
fraction shows up m ost likely due to rounding in th e numbers bein g utilized in
the calculation. Since we do not know how th ese nu mbers were rounded, it is
app ropriate for our purposes to round n to the nearest integer.
Section 11 .5A
1. When d eterm ining th e n for annuity calculations, remember that n represents
the n umber of paym ents. Therefore, n must b e a w h ole number and sh ould
always b e rounded upwards. Whether a partial or full payment is made, it is still a
payment. For example, if n = 2 1.34 paym ents, this would in dicate 21 full payments
an d a sm aller last payment (which is still a payment). T h erefore, 22 payments are
required .
(a) In most cases, the payment (PMT) has been rounded to two decimals. This may
cause insignifican t decimals to show up in the calculations. As a result, an
exception to this rule would be w h en n is extremely close to a w hole nu mber.
This would mean th at no significant digits show up in the first two decimals.
For example, if n = 23.001, it can be reasonably concluded that n is 23 payments
since the 0.001 is probably a result of the rounded payment.
Section 13.1E
1. W h en working with the n for an annuity due, n represents the number of payments
an d must b e a w hole number. Therefore, n w ill always round upward. However, it
is importan t to distinguish w h ether the question is asking about th e term of the
ann uity du e or when the last payment of the annuity due occurs.
(a) If the term is being asked, n can be used to figure out the timeline. For example,
a yearly apartmen t rental agreement would have n = 12 monthly payments,
thus th e term ends 12 months from n ow.
(b) If the last paym ent is being asked, n - 1 can be used to figu re out th e timeline.
In the sam e example, the last rental payment would occur at the beginning of
the 12th month. T h e last payment would be 12 - 1 = 11 months from now.
Section 14.1
1. The paym ent m ust be rounded to the two decimal standard for currency.
2. W h en constructing an amortization sch edule, it is important to recognize that all
numbers in the sch edule need to be rounded to two decim als (since it is currency).
However, since the money remains in the account at all times, all decimals are in
fact b eing carried forwa rd throughout. As such, calculated numbers may sometimes
be off by a penny due to the rounding of the payment or the interest.
XXll STUDENT ' S REF ERE NCE GU ID E TO RD UN DING AND SPECIAL N0 TAT I 0 NS
Section 15.1
1. When determining the purchase price for a bond, it is impo rtant to carry all the
d ecimals until the calculatio n is complete. When com pleting the calculatio n by
formula, the p resent value of the bond's face value and interest payments along w ith
any accrued interest must be calculated. For sim plicity, the text shows each o f these
values rounded to two decimals and then summed to get the p urchase p rice.
R emember though that all decimals are being carried forward until the final answer.
Section 15.5
1. A sinking fund schedule has the sam e characteristics as an am or tization schedule
and may also experience a penny difference due to the rounding of the payment or
the interest.
Section 16.1
1. When m aking choices between vari ous alternatives, it is sufficient to calculate
answers rounded to the nearest dollar. There are two rationales for this. First, in
m ost cases future cash flows are no t entirely certain (they are estimates) and therefore
may be slightly inaccurate themselves. Second, as cents have little value, m ost
decisions would not be based o n cents difference; rather decisions would be based
on d ollars difference.
Section 16.2
1. In cho osing w hether to accept o r reject a contract using the net present value
m ethod, rem ember that future cash flows are estimates. Therefore, w hen an NPV is
calculated that is within $500 of $0, it can be said that the result does no t provide a
clear signal to accept or rej ect. Although the desired rate of return has barely been
m et (or not), this may be a result of the estimated cash flows. In this case, a closer
examination of the estimates to determine their accuracy may be required before
any decision could be made.
Section 16.3
1. Performance indexes are generally rounded to one decimal in percentage fo rmat.
2. This unknown rate of return (d) is generally rounded to 2 decimals in percentage
format.
3. A rate of return is generally rounded to one decimal in percentage format.
For Daryl, Kirkland, and Kealeigh.
-K.H.
To my family for their support and to my two angels, Emma and Elina,
who have brought so much happiness into our lives.
-A.R.H.
1 The first four chapters and Appendix I call upon students to activate prior knowledge
Review of Arithmetic learned in their earlier mathematics courses. As such, Part 1 is intended to provide an
opportunity to review arithmetic and algebraic processes and to apply these skills in
2 relevant business situations in fields such as accounting, finance, marketing, human
Review of Basic Algebra resources, and management.
Chapter 1 covers the basics of arithmetic operations. In this chapter you will learn
3 how to set up equivalent fractions, convert fractions and mixed numbers into decimals
Ratio, Proportion,
and Percent and percents, evaluate complex fractions, reduce fractions to lowest terms, and simplify
expressions using the rules of the order of operations.
4 Calculating percents is introduced early because, from a practical standpoint, it is
Linear Systems often necessary to convert a percent to a decimal w h en performing arithmetic calcula-
tions or using a calculator.
Applications involving payroll, commissions, GST, PST, HST, and property taxes
call upon the use of these basic arithmetical operations and percentages. With respect to
payroll, you will be able to calculate regular pay, overtime pay, and total pay. The text
illustrates how to calculate straight commission, graduated commission (sliding scale),
and salary plus commission as part of a complete discussion on gross earnings.
C hapter 2 reviews the basics of algebra, including simplifying algebraic expressions,
evaluating algebraic expressions by substituting numbers into the variables, solving alge-
braic equations, and creating and solving word problems. Examples show how positive,
negative, fractional, and zero exponents are defined. The study of terms involving posi-
tive, negative, and zero exponents serves as a prelude to the introduction oflogarithms.
Logarithms are useful in solving equations in which the unknown is an exponent. These
expressions involving exponents appear in the study of compound interest developed
later in the text.
Problems involving ratios, proportions, and percents abound in the field of business,
and so in Chapter 3 you will learn how to use ratios to solve allocation and equivalence
PART l: MATHEMAT ICS FUNDAMENTALS AND BUSINESS APPL ICAT IONS 3
problems. Exchange rate comparisons and the Consumer Price Index (CPI) examples
in the chapter demonstrate practical applications of proportions. Discounts, interest
rates, growth in earnings, and wages all use percentages.
Chapter 4 deals with linear equations and systems of two simultaneous linear equa-
tions in two variables. The algebraic elimination method is demonstrated for solving a
system of two linear equations. The rectangular coordinate system is introduced, and an
ordered pair is defined. You will learn how to set up a table of ordered pairs that can be
used to graph a linear equation. The slope-intercept form of the linear equation is
introduced, and special cases are discussed. You will learn how to develop a linear equa-
tion to describe a relationship between two variables and how to set up a system of
linear equations to solve word problems involving two variables.
The Universal Principle of Rounding applies in Part 1 of the textbook. When
performing a sequence of operations, never round any interim solution until the final
answer is achieved. Apply rounding principles only to the final answer. Interim solu-
tions should only be rounded where common practice would require rounding.
Note, however, that due to space limitations, the textbook shows only the first six
decimals (rounded) of any number.
Some specific rounding guidelines for Part 1: Business problems throughout
the textbook often involve money values so the rounding for final answers needs to be
done to the cent; that is, to two decimal places. However, because larger sums of money
usually are involved in currency exchanges, the two-decimal rule is insufficient. To pro-
duce a more accurate result, currency exchange rates used in Chapter 3 need to carry at
least four decimals. Also, note that in Chapter 3, price per litre of gasoline is generally
expressed to three decimal points (129 .9 cents = $1.299 / L) .
While different methods of rounding are used, for most business purposes the fol-
lowing procedure is suitable:
1. If the first digit in the group of decimal digits that is to be dropped is 5 or
greater, the last digit retained is increased by 1.
2. If the first digit in the group of decimal digits that is to be dropped is 4 or less,
the last digit retained is left unchanged.
Objectives are a "roadmap"
showing what will be cov-
ered and what is especially
important in each chapter.
Upon completing this chapter, you will be able to do the following:

O Simplify arithmetic expressions using the basic order of
operations.
f) Determine equiva lent fractions, and convert fractions to
decimals, decimals to percents, and vice versa.
8 Through problem solving, compute simple arithmetic and
weighted averages.
O Determine gross earn ings for employees remunerated by the
payment of salaries, hourly wages, or comm issions.
0 Through problem solving, compute GST, HST, PST, sales taxes,
and property taxes.
eing able to perform arithmetic calculations is important in today's business environment.
Eachchapter opens with

B Arithmetic is used in planning, forecasting, purchasing, contracting, compensation , and
many other aspects of business. Competence in problem solving, including calculation on aver-
a description of a famil-
iar situation to help you ages, is essential. When you employ people in operating a business, you must determine the
understand the practi- r-+ amounts to pay them in the form of salaries or wages, and you must deduct and pay payroll taxes
cal applications of the
material to follow.
such as Canada Pension Plan, Employment Insurance, and employee income taxes. You are respon-
sible for paying your employees and submitting the tax amounts to the federal government.
Operating a business also means that you must determ ine the amount of goods and services tax
(GST) or harmonized sales tax (HST) to collect on almost everything you sell. The amount you must
remit to the federal government, or the refund you are entitled to, is ca lculated on the basis of the
GST or HST you pay when you make purchases of goods and services. By using arithmetic and
problem-solving approaches in this chapter, you will be ab le to determine the amounts owed.
1.1 BASICS OF AR ITH METIC 5
INTRODUCTION
T h e basics of fraction, decimal, and percent conversions are vital skills for dealing with
situations you may face, not only as a small- business owner but also as a consumer and
investor. Although calculators and computers are commonly used when performing
arithmetic operations, to be able to solve more complex business problems modelled
using algebra (and calculus), it is important to be skilled at the process of conversio n
between number forms, the rounding of answers, and th e correct order of operations.
(Appendix II at the back of the text provides basic operations for three common prepro-
grammed financial calculator models.)
1.1 BASICS OF ARITHMETIC

A. The basic order of operations
Boldfaced words are Key
To ensure that arithmetic calculations are performed consistently, we must follow the
Terms that are explained
here and defined in the -+ order of operations.
Glossary section at the end If an arithmetic expression contains brackets, exponents, multiplication, division,
of the chapter. addition, and subtraction, we use the following procedure:
1. Perform all operations inside a bracket first (the operations inside the bracket must
be performed in proper order).
2. Perform exponents.
3. Perform multiplication and division.
4. Perform addition and subtraction.
Numerous examples, often T h e following "BEDMAS" rule might help you to more easily remember th e order of
with worked-out Solutions, operations:
offer you easy-to-follow,
step-by-step instructions. B E D M A s
! Bra ckets Exponents Division Multiplication Add ition Subtraction
EXAMPLE 1.lA (i) (9 - 4) x 2 = 5 x 2 = 10 - - - - - - work inside the bracket first

(ii) 9 - 4 x2=9- 8= 1 do multiplication before subtraction
(iii) 18 -:- 6 +3x 2=3 +6=9 do division and multiplication
before adding
(iv) ( 13 + 5) -:- 6 - 3 = 18 -:- 6 - 3 - - - - work inside the bracket first, then do
= 3- 3 division before subtraction
=O
(v) 18 -:- ( 6 + 3) X 2 = 18 -:- 9 X 2 - - - - work ins ide the bracket first, then do
=2x2 division and multiplication in
=4 order
(vi) 18 -:- (3 X 2) +3= 18 -:- 6 + 3 - - - - work inside the bracket first, then
=3+3 divide before adding
= 6
(vii) 8(9 - 4) - 4(12 - 5) = 8(5) - 4(7) - - work inside the brackets first, then
= 40 - 28 multiply before subtracting
= 12
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Fred, of course, had to tell Janet that there was no hope of help from
grandma.
"And I think you are right, dear, and that I had better get away at once. I
will take just what will pay travelling expenses, and keep me for a few
days. I will write and tell you where to join me. You must settle
everything here, and come as soon as I send for you. I could not stand
the—the disgrace, Janet. Every one will know to-morrow that I am
dismissed, and Henley won't be silent."
Poor, selfish Fred! He desired nothing so much as to get away before his
disgrace was known, and poor Janet, in her unselfish love, was as anxious
about it as he could be. Fred had always held his head high, and whatever
private discontent he felt with his situation, he had always been
considered a very fortunate young man, much better off than others of his
years. To meet those who had always admired and looked up to him, in
his new character, as a dismissed man and a defaulting speculator, he felt
would drive him mad. So, having kissed his two boys as they slept
sweetly in their little beds, he bade farewell to Janet, telling her to come
to Liverpool, to the Ship Hotel, Guelph Street, where he would write to
her; he could not say where he would be, as that would depend upon the
boats he might be in time for. And then he was gone; and poor Janet
crept off to bed, cold and stunned, and almost heartbroken.
CHAPTER III.
IN LIVERPOOL.
NEXT day, Janet sent for a broker, and pointed out to him such articles of
furniture as Fred had told her belonged to him. She was in the midst of
making her bargain when, to her surprise, in came Mrs. Rayburn, who had
not left her room for many days.
"Betty told me, my dear, that Mr. Pitman was here; so I guessed it was
about your piano, and I crept in, for I may as well dispose of my few
things at the same time."
And, turning to Mr. Pitman, she proceeded to point out what she claimed.
It was not very much, but it was nearly all that Janet had been speaking
about, and the poor girl reddened when she found Pitman looking
doubtfully at her. She said—
"I did not know, grandma, that these things were yours. We thought they
were ours."
"Oh, my dear, the things my kind husband bought for me? But say no
more; I know you have always had them as your own, and it was stupid
of me to—"
"No, no; I only spoke lest Mr. Pitman might think I had known it before."
The business was soon settled, and a van carried off all the Rayburns'
share of the furniture. Very bare the parlour looked, and Fred cried for his
"pitty cot," when laid to sleep in his mother's bed. Frank, old enough to be
frightened at his mother's sad face, made no plaint about anything, but
ran with messages and helped her with all his might.
Their few belongings were soon packed, and all, save one box, sent off to
Liverpool by goods train. Janet paid up her household bills for the last
week, and then everything was done. She had no one to say farewell to
save Mrs. Rayburn; her own father and mother had died since her
marriage, and her only brother had emigrated. Janet had always been a
home-keeping woman, and had no very intimate friends.
"What shall you do, grandma?" she asked. "Where will you live till you
hear of a place?"
"I shall stay here, dear, until I'm turned out; then my sister-in-law will
take me in for a few days."
"You'll write and tell me what you hear from Lord Beaucourt, won't you?
Indeed I hope he will be kind to you. I have been so hurried that I hardly
seem to feel things yet; but indeed I am very, very sorry for you. It is so
hard on you."
"It is indeed. But Lord Beaucourt is one who never forgets them who have
served him well, and my mother was his confidential housekeeper—no
common servant; more like a friend, you know—for many years, and his
lordship was always most kind to me. Of course, I shall write, and you
must write to me. How I shall miss you, dear, and my darling boys!
There's some one at the door, Janet."
"Come in," Janet called out wearily.
And in came Mr. Frank Hopper.
"Good evening, Mrs. Rayburn," he said, as she rose to meet him. The
elder woman was sitting in the shadow of the window curtain, and he did
not see her.
"This is a sad business, Mrs. Rayburn. I am sorry to hear that Rayburn

has gone away. It struck me that you might be in difficulties, and that I
had better see you."
"Of course we are in difficulties, Mr. Frank."
"Yes—but I want—I meant—in a word, Mrs. Rayburn, do you know where

your husband has gone, and—are you to join him?"
"Why, certainly I am," Janet said angrily. "Oh, Mr. Frank, how could you
think that Fred would desert me and the children?"
"It looked so bad, his going off in this way. I was afraid there might be—
debts, you know. I wished, if possible, to help you."
"No, Mr. Hopper, you cannot help me. I have money to keep us until we go
out to Fred; I could not take help from you. I think you have been very
hard on my husband. I am an ignorant woman, and perhaps ought not to
say this; but it seems to me that you have been very, very hard on him."
"You mean in dismissing him? But he knew the rules, and knew that we
never depart from them. But I don't want to talk of that. Where's my little
namesake? I have a present here for him."
"Not for him; we will not accept help from you under any names, Mr.
Frank."
"Well, I would help you if I could," the young man said quietly; "but I
understand and respect your feelings. Business men have to be guided by
rules that seem harsh to women, I am sure. Only remember, if you ever
feel that there is anything I can do, you have my address. It will give me
real pleasure to help you, Mrs. Rayburn."
He bowed and withdrew, and old Mrs. Rayburn gave young Mrs. Rayburn
a lecture for being so proud and so foolish.
"I cannot help it," Janet said. "Did you remark how it was all that he
wished to help me; not a word of kindness for Fred, who has worked
under him so long? No, I will not put up with that sort of kindness."
Janet had never left Hemsborough except to go to school in a small town

not ten miles off, so the journey to Liverpool was quite a formidable
undertaking for her. But she had plenty of commonsense, and managed
very well. She and her boys reached the Ship Hotel in safety. And now
there was nothing to do but to wait.
Waiting is always weary work, and poor Janet was anxious about her
husband and uneasy about her boys. Accustomed to play about the big
brewery yards and sheds, where every one knew them and took more or
less care of them, the boys fretted if she kept them in her room in the
hotel; and yet the street and the adjoining quays did not seem a safe
playground for them. The hotel was very small, very crowded and noisy,
and by no means cheap. However, Janet lived as cheaply as she could;
and at last a letter came.
Fred wrote from New York, not, as she had hoped, from Halifax, for she
had wished him to go there to be nearer to her brother. He had as yet
failed to get permanent employment. He could just live, and that was all.
People told him that he was not likely to get good employment in New
York. Yet what could he do? He had not funds now to go to her brother in
British Columbia, and he feared it would be some time before he could
save enough. She must husband her money, and stay in England for a
while, for if she came to him now, what he feared was, that they would
sink into the class that just lives from hand to mouth, and that the boys
would get no education. She was to write to him at once, for he longed to
hear of her and the boys. Frank and Fred must not forget him.
Janet thought long and deeply over this letter, and the immediate result of
her meditations was that she wrote to Mr. Frank Hopper. Poor Janet! She
felt very reluctant to do it.
"Ship Hotel, Guelph Street,
Liverpool.
"DEAR SIR,
"You were kind enough to say that you would help me

if you could. Will you give me a few lines which I may show
to any one here to whom I may apply for work? I am quite
unknown here, and my husband and I have decided that it
is better for me not to join him just yet. I think he will
most likely go after a time to my brother in British
Columbia, and there is no use in my going out till I can go
there direct. I am a very good dressmaker, and wish to find
work in order to help my husband.
"Your obedient servant,
"JANET
RAYBURN."
Mr. Hopper at once sent her a letter which answered her purpose. She
was fortunate enough to get employment in the cutting-out department of
a great shop in Bold Street, where she gave such satisfaction that she was
told that she should be the head of the department when the lady now
over it married, which she was about to do soon. She was free at about
seven o'clock, and might be free rather earlier in winter.
She sent the boys to a little preparatory school in the street in which she
now lodged, Frank to learn, and Fred to be safe; and the servant at the
lodgings undertook to give them their dinner when they came home, and
on fine days to let them play in what she (perhaps satirically) called the
garden, and generally to keep a watch upon them. Then she was able to
write to Fred to say that she had got employment which, with the few
pounds she kept, would support her and the boys for a time; and she sent
him all the rest of the money she still had, urging him to go to her brother
Gilbert, and "not to be longer about sending for her than he could help,
for she felt very sad without him."
Poor Janet! She would not have admitted to any one, even to herself, that
she in the least distrusted her husband. Yet, in doing this, she was
unconsciously influenced by a touch of distrust. She felt that if she kept
money enough to take her and the boys out, maybe Fred would go on just
keeping himself; he had never taken kindly to steady, dull work, and this
kind of life might have some strange attraction for him. Whereas, if he
knew that she was working hard, and that he must send her the passage-
money, he would certainly feel quite differently. As for herself and the
children, she had no fears. God would take care of them.
But God's ways are not our ways; and Janet's simple faith was to be
sorely tried. And it stood the trial, because it was simple and humble.
When things happened that she did not expect, Janet did not forthwith
conclude that God had forgotten His promises; she concluded that she
had not fully understood them.
The summer was now past, and the winter was a severe one. Liverpool is
a very cold place, too, and Janet felt it herself, though she did not actually
suffer in health. But the children caught cold again and again. They would
creep back to their rather dreary home when school was over, with their
little overcoats unbuttoned, and their warm comforters forgotten. After a
time, Janet succeeded in teaching Frank that it was his duty to take care
of Fred, and of himself too, because it made poor "muddie" so wretched
to see them ill. From that time, Frank remembered; and it was touching
to see the tender, protecting care he took of little Fred, who really
suffered far less from cold than did Frank himself. Frank grew tall and thin
and white, but he never complained, for "poor muddie would be sorry, if
she knew how his bones pained him."
Looking back upon that time in Liverpool, it always seemed to Janet very
long, yet it really lasted but a few months. She heard regularly from her
husband, and he wrote in good spirits. He had set out to join Gilbert Gray,
but, having reached a town called New Durham, in British Columbia, he
fell in with an acquaintance who was in business there, and who had put
him up to one or two very good things; he would soon be quite
independent. In sending him that money she had, he thought, laid the
foundation of a fine fortune; but he would send her the passage-money
very soon now.
All this made Janet uneasy, she knew not why. She felt a little uneasy,
too, about grandma, as Mrs. Rayburn had for years been called in the old
Gatehouse, for she had never heard from her since they parted, though
she had written to her. However, in the spring she had a letter from her.
"Kelmersdale Castle, near

Rugeley.
"MY DEAR JANET,

"I am afraid you are thinking me very unkind, getting
letters from you and never writing to you; but you will
understand how this happened, when I tell you how I have
been knocked about. I am glad you have found work that
suits you, but, in your place, I would have gone after Fred
at once. I love him like a mother, but, after what
happened, I think him weak, and I hardly expect now that
you will ever get out to him. You ought to have left the
children in England and gone after Fred. No risk in leaving
them for a time; any one would be kind to those darlings.
But I suppose it is too late now, as you parted with the
money.
"As for me, a letter from my lord came the day after
you went away, offering me my choice of two situations,
matron of a big orphanage near Stafford, or housekeeper
at Kelmersdale Castle. The matronship was the best pay,
so I took it. But, my health being so feeble, I found the
work too much, and after my little darlings, Frank and
Fred, the children seemed a dreadful lot, and after a few
weeks, I wrote to my lord to say my health would not
stand it, and that if the other place was still open, I would
prefer it. I am thankful to say my lord had not been able to
suit himself, so I came to the Castle, and I just wish I had
the dear boys here, with such places to play about, and
every comfort.
"The place is very old, and was once besieged. I am

learning all the history off by heart, for many a shilling can
be got by showing visitors over the Castle in summer. My
lord never lives here long, but comes on business or for the
shooting. The living rooms are small, with thick walls and
little windows high up. My rooms are very comfortable, and
I have servants under me, and am to see all kept in order;
the armour, and old pictures and furniture. But, except just
when the earl is here, I have little to do but to amuse
myself like any grand lady. The salary is small, or I should
send you a present, as well I might after all your kindness
to me, which I can never forget. I hope the darling boys
have not forgotten grandma. I seem to hear Frank calling
me, dear little rogue. Some day you must all come and pay
me a visit; I know my lord will give leave.
"You say the boys go to school, but in the summer
holidays they might be glad of a change. But take my
advice and get after Fred as soon as you can; don't lose
your hold over him, it will be the ruin of him.
"Ever your affectionate mother,
"LYDIA RAYBURN."
"Oh, I wish people would not say things like this to me!" cried Janet,
unconscious that no one had said anything to her about her husband
except Mrs. Rayburn and her own anxious, loving heart.
Mrs. Lydia Rayburn little thought when she penned that letter, so full of
patronizing kindness, what the effect of her words would be; for
simpleminded Janet believed that she meant every word most sincerely.
She sent the letter on to Fred, and said to the two children, "How fond
grandma is of you both, boys!"
To which Frank replied thoughtfully, "Is she, muddie?"
Soon after this Fred failed to write for some weeks, and Janet was getting
seriously uneasy, when she received a letter from her brother; not one of
his usual brief epistles, but a long, closely written letter with a money
order enclosed.
"Old Man's Ferry Farm, Gattigo,

British Columbia.
"MY DEAR SISTER,
"I do not know whether what I must now tell you will
be a surprise and a shock to you or not. Of course, I could
see that you were not speaking out quite frankly about
your husband and the loss of his good place; not that I am
blaming you, for he is your husband, and you are bound to
stick to him. You wrote me word that he was on his way to
me, and I laid out my plans for giving him and you a start
here if I could. But he did not turn up, and only ten days
ago I got a letter from a lawyer in New Durham—a rising
new town a good way from us—enclosing a letter from
Rayburn.
"Not to make too long a story of it, your husband told
me that he had been on his way to me, five months ago,
when at New Durham, he fell in with an old friend, and
went into some kind of business with him, putting all the
money he possessed into it. They seemed prosperous for a
time, and Rayburn declares that he did not know that the
articles they were selling were regular cheap locks and
stoves and such things, with good English names on them,
which this fellow Turner had got made out here, and not
even of good materials. Of course, this could only go on for
a time—people here are no fools—and Turner must have
found out that he was suspected, for he made off with all
he could get hold of, and left Rayburn to bear the
consequences. Rayburn had a narrow escape of being
roughly handled by a lot of fellows who had come to the
town together to have it out with Turner. In these half-
settled places people have a very short kind of justice, but
he got away out of the shop with a whole skin, and was
taken up for the cheating. Then he told the lawyer that he
was my brother-in-law, and that I could speak for him, and
so they sent for me. I went, of course, and found him very
ill, I really think from fretting, for there is no doubt that he
was badly treated by Turner.
"They have not caught Turner, and now they will hardly
do so; and I think Rayburn will get off for want of evidence
against him. I would get him out on bail, but that he is so
ill, that it is better for him to keep quiet. When he is free, I
shall take him home with me, and Aimée will nurse him till
he is all right again. And, if I find it possible, I may still do
what I was thinking of—start an hotel in Gattigo to be
supplied from my farm, and you and Rayburn to manage it.
If he had come direct to me, all would be easy. Now I fear
it may be a feeling against him, and in that case it would
be risking money in setting up the hotel, and it is a great
pity, for he is the very man for the place; he has such a
pleasant manner. But there is no use in crying over spilt
milk. I wish he was not your husband, for, truth to say, I do
not like this business, though I cannot help liking him. And
I will do what I can for your husband.
"Now, Janet, the fact is, if you have as much good

sense and good principle as I believe you to have, you
ought to come out by the next boat, and join Rayburn, and
not part with him again. In some way we will find an
opening for him, and with you beside him, and me at your
back—particularly now you are on your guard—he may yet
do very well. He is feather-headed, easily taken with
anything new, and impatient of slow gains. Rayburn says
you are to send the boys to their grandmother, who is sure
to take good care of them, being very fond of them. He
desired me to say that on no account are you to bring
them with you, if Mrs. Rayburn will take them for a while,
as he is very anxious that they should never hear of his
being in prison here. I think myself that it would be better
for you to come alone, and we will get them out as soon as
we know what you and Rayburn will do; but there may be
no use in your settling here, and it will be better to get
them to the place you finally decide upon, direct.
"I enclose money for your journey, and, on the other

side of this sheet, I will put down your exact best way, and
all particulars I can think of. Do not lose a boat, and come
direct to Gattigo. Rayburn will probably be here before you.
The hotel plan, if still possible, would be the best for him
and for you; but, unless you are here, I will not risk it.
Besides, having you with him will make him seem more
dependable and respectable, and, you see, he has made a
bad start, and has a prejudice to get over. Do not think me
unkind, though I know I may seem so, because I am not
used to much letter-writing, and do not know how to wrap
things up.
"My wife is just longing for you to come; there is not a

woman she cares about within many miles of us.
"Your affectionate brother,
"GILBERT GRAY."
Then followed the directions for her journey, which were so clear and
minute that a child could have followed them.
A year ago the idea of such a long lonely journey would have reduced
Janet to tears and misery; but she had learned to know her strength, and
it was not her own part in the matter that frightened her. Nor was it the
leaving the boys at Kelmersdale, for she had no doubt of their well-being
there, and had been thinking of asking grandma to take them for a
fortnight or so, as Frank would be the better for a change of air. She had a
brave heart and a childlike faith, and thought but little of herself; but oh,
what bitter tears she shed over that letter! But she lost no time; in half an
hour after the letter came, she was in the office of the line of boats Gilbert
had named, inquiring when the next left Liverpool.
CHAPTER IV.
KELMERSDALE.
JANET found that the next boat would sail in four days; so, if she could be
set free from her engagement at Gair and Co.'s, she could well be ready
in time, even if she had to take the children with her. For, of course, if
Mrs. Rayburn either could not or would not keep the little ones, they must
needs go with her.
The first thing to be done now was to telegraph to Mrs. Rayburn. She
passed an office on her way to Gair's. She sent her message, but only
said, "Can you send to meet us at Rugeley to-morrow?"
"I can explain much better when I am with her," she thought; "and if she
cannot take the boys, the expense is not very great, after all."
Having arranged for the answer to be sent to Gair's, she went thither
herself, arriving five minutes late, for the first time.
"Has Mr. Simmons come yet?" she asked a young man who was arranging
the window.
"He's in the office, Mrs. Rayburn."
And to the office Janet repaired. There she told her story, with certain
reservations. Her brother, she said, had sent her money to go out to
Canada to her husband, who was ill. When he recovered, her brother
knew of a promising opening for him, in which her help would be
necessary. Her month's salary was nearly due, but she was willing to
forfeit it, if she might go at once. There was no press of work, and Miss
Green was a very capable cutter-out. Mr. Simmons, a slow and solemn
man, rather thought that such an abrupt departure was impossible, but
would speak to Mr. Gair. Luckily for Janet, it was kind old Mr. Gair who was
in the office, and he came out to speak to her himself.
"We're sorry to lose you, Mrs. Rayburn, but we will not stand in your way,
as the matter seems of consequence. Pay Mrs. Rayburn up to the first of
July, Simmons; she has been a steady and useful worker."
Finally, the old gentleman sat down and wrote her a regular discharge.
"Keep that, Mrs. Rayburn," he said, looking kindly at the anxious young
face. "It may prove useful, though I hope your husband will do well. Do
you take your children with you?"
"No, sir; I shall take them to Kelmersdale Castle, near Rugeley, where
their grandmother is the housekeeper. If she can keep them, I am to
leave them with her for a time."
"Well, good-bye, good-bye," said Mr. Gair, retreating hastily towards his
private room, for his sons were wont to laugh at him for being always
ready to interest himself in any one. But he took a parting glance at
Janet, and something in the youth, sweetness, and determination in her
face touched his heart. Muttering, "I will now; they may say what they
like, just for once I will please myself," back he came.
"Are you sure you can manage all this for yourself, Mrs. Rayburn? Is there
anything that I can do for you?"
Janet looked up in his face with a somewhat tremulous smile.
"I have been so afraid," she said, "but if every one is as kind as you are—
but, indeed, that is not likely. I don't know how to thank you, sir; your
kindness gives me such courage."
"I think you have plenty of courage," the old man answered, "and a better
Friend than I can be. One who can go with you, and yet be with the
children at home. Is it not so?"
"Oh, it is—it is indeed! Yes, I can say that sincerely."
"Then you serve my Master, and so you need never be afraid, for you will
be cared for. God bless you, child."
Janet left the shop with that blessing warm at her heart. She went home,
and busied herself in getting the boys' clothes together and packing them.
She took a cabinet photograph of her husband and cut away the edges, to
make it fit into a little miniature case she had among her few ornaments:
this she meant to give to Frank. She made a list of the things in the trunk,
which she carefully packed for the children. While thus employed, the
answer to her telegram was sent on from Bold Street. It was brief, but
said that a vehicle should be at the station to meet the 12 a.m. train.
Then the boys came home from school, and Janet nearly broke down
when she heard their shout of rejoicing when they saw her at that unusual
hour. When she had given them their dinner, she took Fred on her knee
and put her arm round Frank, as he stood beside her.
"Now, listen to me, my little boys. I have something to tell you which you
will not like, and neither do I; but it cannot be helped, and I want you
both to be good—very good—and so help me to bear it. For I must go
away and leave you for a time, and—and—it nearly breaks my heart."
"Leave us—here, muddie?" Frank said, fixing his blue eyes on her face,
and growing white in the endeavour to "be good."
"Won't be left," said Fred, sturdily; "we go wif you."
"Not here, Frank, and not alone. To-morrow, I shall take you to a beautiful
place in the country, where I hope to leave you with grandma. There you
will have green fields to run about in, and grandma to take care of you.
You remember grandma, Fred, don't you?"
Frank had slipped down, and sat on the floor at his mother's feet, staring
up at her, and keeping unnaturally still, with every trace of colour gone
from his face. And there he still sat, when Fred had forgotten all about
this terrible parting and was playing merrily about the room, and Janet
was completing the packing of the box.
"Why must you go, muddie?" he cried at last, catching at her dress as she
passed him.
"My darling, my little Frank, don't look like that. I would not leave you if—
if I could help it. Father is ill and, wants me. When he is well, you shall
both come to us."
She sat down and lifted him upon her knee.
"The time will pass quickly, Frank. See, here is father's picture—I give it to
you; keep it safe, and show it to Fred, that he may remember him. And
you will be good, and not make poor muddie fret. And you will take care
of Fred, and try to keep him from being troublesome to grandma."
"I will try," Frank said. "May I go to bed, muddie? I'm tired, and don't
want any supper to-day."
Janet was rather frightened, he looked so white and weak. She put him to
bed, and brought him some bread and milk, which he took to please her.
When she woke him next morning he seemed quite himself again, and,
having said his prayers, he came and stood before her, saying earnestly—
"I will try to be good, muddie, and I promise to take care of Fred all I
can."
And he was good, poor little fellow, giving no trouble whatever, and trying
to keep Fred quiet during the journey. But Fred had bound himself by no
such promise, and was in uproarious spirits, making noise enough for half
a dozen.
At Rugeley she left the train and looked about for some one from
Kelmersdale. Presently a short, square-built, awkward young man came
up to her, making a clumsy bow, which he accompanied by a curious
movement of one foot, like the pawing of an impatient horse. But it was
shyness, not impatience, that made him paw.
"Be you Mrs. Fred Rayburn?"
"Yes; is Mrs. Rayburn here?"
"No, but I have the taxcart here for you and the children. Be this your
box? Come along, then."
With a final paw, which sent the gravel flying, he picked up the box and
led the way to where he had left the taxcart. Janet sat in front beside the
driver, with Fred in her arms, for she could not trust the excited child out
of her sight. Frank and the box kept each other company, and Frank was
glad, for he wanted to cry just a little without "making muddie cry." It was
a lovely drive, but none of them saw much of it.
At last they drove through a great heavy gate into a paved court, walled
on three sides, and with a large pillared porch on the fourth, with a great
broad flight of stone steps leading to a large iron-studded door. This was
wide open, and just inside stood Mrs. Rayburn, and with her a young
servant, in white cap and apron and blue satin bows.
"Well, Janet dear, here you are, and here are my darling boys," Mrs.
Rayburn cried. "It was a surprise—your telegraph saying that you were
coming. Why, Frank looks but poorly; a little country air will do him good.
Jacob, bring in that box. Fred's grown a little; as to Frank, he's run up far
too fast for strength. Come to my sitting-room—isn't this cosy? Maria,
we'll have dinner as soon as 'tis ready."
Maria departed, and Mrs. Rayburn went on.
"So you have a holiday—how long is it, Janet? I hope you can stay some
time. My lord is never here except during the shooting season, when he
has a party for the sport; so I can do just as I like. And I advise you to
leave the children with me just for a bit—just till Frank picks up a colour
and a little flesh. He looks very peaky."
"Yes; Liverpool does not agree with him. May the boys run out and play in
the court, Mrs. Rayburn? I want to talk to you alone."
"I'll just send and get the gate shut, and then they'll be as safe as
possible."
She left the room, and soon a man crossed the yard and shut the gate.
The two boys went out, but only into the porch. Fred was so sleepy that
he was glad to sit on the stone steps with his head on his brother's
shoulder. Frank, white and weary, knowing the whereabouts of every bone
in his body by a separate ache, yet manfully held the little one in his
arms, and sat gazing at the paved court and the high walls. Somehow he
felt like a bird in a cage.
"Now, Janet, we're alone. Let's have a talk till dinner is ready."
"Mrs. Rayburn, do you think Lord Beaucourt would be annoyed if you had
my boys here for a time?"
Having just asked them to stay, Mrs. Rayburn could not very well tell a
different story now; but when she made that request, she had no idea
that Janet would part with her darlings for so much as a week. But, after
all, the boys could not be in her way. The house was large and the
weather warm; they could be out for the greater part of the day, and they
would not cost her a penny. So, after an almost imperceptible pause, she
said—
"My lord annoyed? Oh, dear, not at all. My mother, you know, was a
confidential servant—almost a friend; and he is just as kind to me. If you
like to let Frank stay here, I'll take the best of care of him—you know
that."
"Yes; so you said in the kind letter I sent on to Fred. And he has sent me
word by my brother to leave them with you if you really can have them
without being troubled about it afterwards."
"To leave them both?"
"Yes; Fred is ill and in trouble, and Gilbert says I had better go at once.
Gilbert has plans for us, but it is not quite certain yet where we shall be. I
am to go to Gattigo to my brother, and Fred will meet me there, and when
we know where we shall settle, we will get the boys out. It will not be for
long. Gilbert thinks of setting up an hotel in Gattigo, with Fred and me to
manage it. And when we are quite settled, and can make you
comfortable, you must come out to us, grandma. However pleasant things
may be made for you here, it is not like being in your own house with
your own people."
"No, indeed, Janet, it's a deadly dull life here for one used to sociability
and a large town. I often think of Hemsborough and the dear old
gatehouse. I might be of use, too, in an hotel. Well, Maria is a good girl,
and will help me willingly, and, as you say, it will not be for long. And
what trouble is Fred in, poor dear fellow?"
"He went into partnership with a man he had known before, and this man,
Turner, was not dealing fairly, and he had to run away, and Fred's money
was all lost."
"If this Turner is the man who broke some years ago in Hemsborough,
Fred ought to have known better than to have dealings with him. So he
lost all he had?"
"Yes—but it was not much. Gilbert has got on very well, and seems sure
that this hotel will succeed. But Fred was ill when the letter was written,
and Gilbert says I ought to be there. They both wish me to come without
the boys, but if you cannot have them, I shall take them with me." And
Janet's face brightened a little, for oh! How much rather would she take
them than leave them!
But Mrs. Rayburn was determined not to say anything which could make
Janet think that her position at Kelmersdale was not as independent and
pleasant in every way as she had represented it, so she declared that my
lord would be quite pleased to know that she had the darling boys for
company.
"For he knows it is a lonely life here, and he is so kind-hearted. But, you

see, things were going all wrong for want of a really trustworthy
confidential person at the head of the household. He will not be here till
the middle of August, and perhaps not till September. Of course, they
might be in the way then. But there's time enough, and you know, Janet,
I'd do anything for you and Fred."
"I knew you would do this, if you could, so I have brought all their
clothes. I must get back to Liverpool; the steamer sails on Thursday,
early."
"Then you can stay here to-night. Do you think I'm going to let you travel
back to-night, and you looking so tired and worn? No, no, stay for the
night, and you'll see where the little darlings are to sleep, and how
comfortable I shall make them; as well I may, remembering all your
kindness to me, and how you nursed me when I was ill."
Her cordiality increased as she thought over the hotel project, and
considered how pleasant it would be, when all was comfortably settled, to
rejoin her stepson in Gattigo. Life at Kelmersdale was very dull to a
woman whose idea of enjoying herself meant much gossip and many
sociable tea-parties.
"I will stay, as you are so kind," Janet said, yet in her heart she wished
she had the courage to go, and have the parting over.
Maria, a good-natured girl, with very little to do, seemed rather pleased at
the prospect of a visit from the children, and said that the last
housekeeper had a niece who used to stay with her for months at a time.
There was a turret-room, six-sided, at the end of the passage on which
Mrs. Rayburn's rooms opened, and this was got ready for the boys. Janet
unpacked and arranged their clothes herself; and at night she tucked
them up in an old-fashioned little bedstead, with a high back of carved
wood. Conspicuous among the carving was an earl's coronet, which had
once been gilded; I suppose some baby Earl of Beaucourt had once slept
in the bed which now held poor Janet's boys. They slept as sweetly as any
earl, and even Janet slept, worn out.
Next day, Janet said she must catch the train for Liverpool, which was due
at Rugeley at a little after eleven. She had still a good deal of packing to
do, some things to buy which she would want on the passage, and she
must go to the school the boys had attended and pay what was due there.
She would not take the boys to Rugeley with her. When Jacob and the
taxcart came to the door, she kissed Mrs. Rayburn, and whispered—
"Be—be tender with them. They have never had a harsh word. Frank will
give you no trouble, and if Fred is not quite so good, oh! Have patience
with him, he is but a baby. Good-bye, and thank you for all your
kindness."
Then she knelt down on the stone floor of the hall, and held her boys to
her heart for a few moments. Fred set up a lamentable howl, but Frank
only gazed at his mother with wide eyes and a pale face. Janet rose, and
walked hurriedly out into the porch; Jacob helped her into the cart, and in
a moment they were gone.
"Come back, come back, muddie!" shouted Fred; "Take me wif you. I
won't stay here."
"Nonsense, child!" said Mrs. Rayburn, catching him as he broke away from
Frank and ran towards the door. "You've got to stay here. Come along to
my room and watch the cart; you can see it from the window there."
When the cart had passed the last turn in the long road through the park
at which it could be seen, Fred set up another roar. Mrs. Rayburn lifted
him up, and went to where her spacious easy-chair stood, where she sat
down.
"Stop that, Fred. Come here, Frank. Now, listen to me, both of you. You
are to stay here for a time, and if you're good, you'll have a pleasant time
of it. And I dare say you will be good, after a time, but you're both just a
bit spoiled, because your mother is too soft in her ways with you. Now,
I'm not like her."
"No, grandma," said Frank, with conviction.
"And if you're naughty or noisy or mischievous or troublesome in any way,

I'll give you a right good whipping. If you'll be good, you'll find yourself
very well off. And when you've had a whipping or two, I've no doubt I
shall have no more trouble with you. Come, now, get your hats, and I'll
show you a place where you may run about and play."
She took them out into the paved court, and across to a small iron gate,
and, when she had unlocked and opened this gate, Frank cried out with
surprise and delight—
"Oh, muddie, muddie, if you could just see this!"
On hearing this imprudent mention of "muddie," Fred began to roar; but

he received a very prompt cuff on the side of his curly head, and ceased,
staring hard at grandma.
To confess the truth, Fred had been quite spoiled by being the pet and
plaything of the school he attended with Frank—and, indeed, of the house
where his mother lodged also. He was a very handsome child, being like
his father, and he was also a self-willed little monkey, who liked his own
way, and was but little used to contradiction. Seeing "muddie" but for a
short time each day, he was always very happy and tolerably good with
her, so that poor Janet had little idea that her son had learned to get his
own way—entirely with Frank, and to a great extent with others—by
howling loudly when not pleased. Thus I may say that I do not altogether
grudge him a little discipline, though a box on the ears is not a safe way
to apply it.
Frank took his brother's hand, and drew him through the little gate into a
large, old-fashioned garden, primly and stiffly laid out, and full of various
flowers, though there was nothing very fine or rare. But to a child a flower
is a flower, and there were walks to run up and down, little thickets of
evergreen to explore, and, in the middle, a marble basin full of gold-fish.
In fact, it was a Paradise, and in this Paradise, these two little Adams
were to be left to their own devices.
"I shall come for you at two—that's my dinner-time, children. You must
not walk on the beds nor pick flowers nor do any mischief, but play about
and amuse yourselves. And I do hope, Frank, that you'll pick up a little
colour, for at present, you're a show. I shall lock you in. Now mind, if you
do any mischief, I shall whip you soundly."
To leave two boys, one not quite seven and the other only four, alone in a
garden full of flowers, and to expect them to gather none is to expect too
much of such very young human nature. Frank would never have done it,
but Fred did; and Frank, though he disapproved, did not actually interfere
to stop him.
Mrs. Rayburn spent the rest of the morning in writing to Lord Beaucourt,
telling him what had happened (in her own way), and asking leave to
keep the boys with her until their parents sent for them. As she had
before given Lord Beaucourt to understand that Fred Rayburn was a ne'er-
do-weel, who had ruined her, and his wife a silly, shiftless body, who
never saw what mischief was going on, while she herself was a most
amiable, trustful being, whose little all had been made away with by this
thriftless pair, the earl was quite ready to pity her. He wrote that he was
sorry that she had new difficulties with her stepson, but that the children
would be in no one's way at Kelmersdale, and she could keep them, if she
liked. This answer, of course, did not come for two or three days.
At two, Mrs. Rayburn went to the garden for the two boys, caught them
red-handed—that is to say, Fred had his hand full of some gaudy tulips
and china roses—and proceeded to administer what she called justice at
once. She had found them near the marble basin, and on the edge of this
she sat down.
"Did you hear me say that you were not to touch the flowers? Yes, you
certainly did. And I said that if you did, I should whip you soundly."
"If we did any mischief, you said, grandma," answered Frank.
"And what do you call that?" pointing to the flowers in Fred's hand. "And
what do you suppose Mr. Ross, the gardener, will say when he misses
them? And the beds all trampled on, I suppose?"
"No, indeed, grandma, we never went on the beds at all. We did no

mischief—flowers don't mind being picked."
"Don't you stand arguing there, sir; you were always one for arguing. It
was all your fault, for Fred's only a baby, so I shall let him off this time."
And seizing Frank, she proceeded to lay him across her knees, and gave
him a smart whipping. Then she set him on his feet, all flushed and giddy.
The first thing he saw was the row of windows that overlooked the
garden, and I think that the shame of having possibly been seen
undergoing such disgrace was worse than the whipping.
Fred, hitherto staring, open-mouthed and terrified, now began to

whimper.
"Oh, Fwank, was it for the f'owers? You said she'd be angwy. Beat me too,
you bad woman. 'Twas me took 'em; Fwank begged me not."

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Contemporary Business Mathematics

with Canadian Applications 12th Ed

Contemporary Business Mathematics with Canadian

Understanding Business 12th Edition Bill Nickels

Intermediate Accounting, Volume 1, 12th Canadian

Understanding Business 12th Edition William G. Nickels

BUSN Introduction to Business Third Canadian edition

Allen Maths 12th 12th Edition Allen

Calculus with calcChat Calcview, 12th Edition Larson

Managerial Accounting: Creating Value in a Dynamic

Library and Arc hives Canada Cataloguing in Publication

Identifiers: Canadiana 20190126507 I ISBN 9780135285015 (hardcover)

Part • Mathematics Fundamentals and Business Applications ... 2

Part • Mathematics of Business and Management ... 188

Part • Mathematics of Finance and Investment ... 333

Appendix I: Furth er R eview of Basic Algebra ... 691

Appendix II: Instructions and T ips for Three Preprogrammed Financial

Answers to Odd-Numbered Problem s, R eview Exercises,

Part 0 Mathematics Fundamentals and Business Applications ... 2

1 Review of Arithmetic ... 4

2 Review of Basic Algebra ... 45

3 Ratio, Proportion, and Percent ... 95

Review Exercise . . . 136

4 Linear Systems ... 142

Part 1 Comprehensive Case ... 184

Part • Mathematics of Business and Management ... 188

6 Trade Discounts, Cash Discounts, Markup, and Markdown ... 220

7 Simple Interest ... 267

8 Simple Interest Applications ... 301

Part 2 Comprehensive Case . . . 330

Part • Mathematics of Finance and Investment ... 333

9 Compound Interest-Future Value and Present Value . .. 336

10 Compound Interest-Further Topics ... 389

10.3 Effective and Equivalent Interest Rates . . . 402

11 Ordinary Simple Annuities ... 417

12 Ordinary General Annuities ... 462

13 Annuities Due, Deferred Annuities, and Perpetuit ies ... 493

Case Study Planning for University ... 54 5

14 Amortization of Loans, Including Residential Mortgages ... 548

15 Bond Valuation and Sinking Funds ... 602

16 Investment Decision Applications ... 650

Part 3 Comprehensive Case ... 688

practice exe rcises containin g numerous drill n..-..-....

each ch apte r, R eview Exercises , Self- Test ,

NEW TO THIS EDITION

COMPREHENSIVE CASE STUDIES

chapters. :-=:..'"':'.::::::.:.= ｾＬＭＮ＠

Review Exercise, allow ing students to see

• Each chapter open s w ith a description o f a

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