Deitz J.E., Southam J.L. Contemporary Business Mathematics for Colleges
Подождите немного. Документ загружается.
Part 1: Fundamental Review 2
1 Fundamental Processes 3
2 Fractions 29
3 Decimals 47
4 Word Problems and Equations 69
Part 2: Percentage
Applications 86
5 Percents 87
6 Commissions 107
7 Discounts 121
8 Markup 139
Part 3: Accounting
Applications 156
9 Banking 157
10 Payroll Records 175
11 Taxes 201
12 Insurance 229
Part 4: Interest Applications 250
13 Simple Interest 251
14 Installment Purchases 269
15 Promissory Notes and
Discounting 295
16 Compound Interest 315
Part 5: Business Applications 342
17 Inventory and Turnover 343
18 Depreciation 363
19 Financial Statements 383
20 International Business 405
Part 6: Corporate and Special
Applications 424
21 Corporate Stocks 425
22 Corporate and Government
Bonds 445
23 Annuities 461
24 Business Statistics 493
Appendix A Answers to
Odd-Numbered
Problems 517
Appendix B Answers to Self-Check
Review Problems 526
Glossary 530
Index 536
Progress Report 541
x Brief Contents
BRIEF CONTENTS
Part 1: Fundamental Review 2
1 Fundamental Processes . . . . . . . .3
Addition . . . . . . . . . . . . . . . . . . . . .4
Number Combinations . . . . . . .4
Repeated Digits . . . . . . . . . . . . .5
Adding from Left to Right
(Columns of Two-Digit
Numbers) . . . . . . . . . . . . . . . . . .5
Checking Addition . . . . . . . . . .5
Horizontal Addition . . . . . . . . .6
Subtraction . . . . . . . . . . . . . . . . . . .7
Checking Subtraction . . . . . . . .7
Horizontal Subtraction . . . . . . .7
Multiplication . . . . . . . . . . . . . . . . .8
Checking Multiplication . . . . . .9
Multiplying Numbers Ending
in Zero . . . . . . . . . . . . . . . . . . . .9
Multiplying When the
Multiplier Contains Zero
Not on the End . . . . . . . . . . . . .9
Multiplying the Product
of Two Factors . . . . . . . . . . . . .10
Multiplying by 25 . . . . . . . . . . .10
Multiplying by 50 . . . . . . . . . . .10
Division . . . . . . . . . . . . . . . . . . . . . .11
Checking Division . . . . . . . . . .12
Dividing by 10 . . . . . . . . . . . . .12
Dividing by 100 . . . . . . . . . . . .13
Dividing When the Divisor
and Dividend End with Zeros . .13
Estimating . . . . . . . . . . . . . . . . . . .14
Estimating when Multiplying .14
Estimating when Dividing . . .14
2 Fractions . . . . . . . . . . . . . . . . . . . . .29
Notation and Vocabulary
of Fractions . . . . . . . . . . . . . . . . . .30
Changing Improper Fractions
and Mixed Numbers . . . . . . . . . . .30
Changing Fractions to Lower
and Higher Terms . . . . . . . . . . . . .32
Adding Fractions and Mixed
Numbers . . . . . . . . . . . . . . . . . . . . .33
Subtracting Fractions and Mixed
Numbers . . . . . . . . . . . . . . . . . . . . .34
Borrowing 1 . . . . . . . . . . . . . . .34
Multiplying Fractions, Mixed
Numbers, and Whole Numbers . .36
Canceling Common Factors in
Numerators and Denominators . .37
Dividing Fractions, Mixed Numbers,
and Whole Numbers . . . . . . . . . . .38
3 Decimals . . . . . . . . . . . . . . . . . . . . . .47
Fractions Versus Decimal
Numbers . . . . . . . . . . . . . . . . . . . . .48
Decimal Numbers and Electronic
Displays . . . . . . . . . . . . . . . . . . . . . .48
Reading Decimal Numbers . . . . . .49
Reading Long Decimal
Numbers . . . . . . . . . . . . . . . . . .49
Rounding Decimal Numbers . . . . .50
Rounding Up . . . . . . . . . . . . . .50
Whole Numbers, Decimal Numbers,
and Arithmetic . . . . . . . . . . . . . . .51
Adding Decimal Numbers . . . . . . .51
Subtracting Decimal Numbers . . .52
Multiplying Decimal Numbers . . .53
Dividing Decimal Numbers . . . . . .54
Using Multipliers and Divisors that
End with Zeros . . . . . . . . . . . . . . . .57
Approximating Products
and Quotients . . . . . . . . . . . . . . . .58
4 Word Problems and Equations . .69
Solving Word Problems . . . . . . . . .70
Solving Rate, Time, and Distance
Problems . . . . . . . . . . . . . . . . . . . .71
Solving Simple Numerical
Equations . . . . . . . . . . . . . . . . . . . .73
Numerical Relationships
in a Series . . . . . . . . . . . . . . . . . . . .75
Making Quick Calculations
by Rounding Numbers . . . . . . . . .75
Part 2: Percentage
Applications 86
5 Percents . . . . . . . . . . . . . . . . . . . . . .87
Changing Percents to Decimals . .88
Changing Decimals and Fractions
to Percents . . . . . . . . . . . . . . . . . . .89
Contents xi
GLOSSARYCONTENTS
Finding Base, Rate, and
Percentage . . . . . . . . . . . . . . . . . . .90
Using Percents in Business . . . .92
Using Percents to Measure
Increase and Decrease . . . . . . . . . .92
Computing Amounts
of Increase and Decrease
with a Calculator . . . . . . . . . . .94
Using Percents to Allocate
Overhead Expenses . . . . . . . . . . . .94
6 Commissions . . . . . . . . . . . . . . . .107
Computing Sales Commissions
and Gross Pay . . . . . . . . . . . . . . .108
Computing Graduated
Sales Commissions . . . . . . . . . . . .109
Computing Sales and Purchases
for Principals . . . . . . . . . . . . . . . .111
7 Discounts . . . . . . . . . . . . . . . . . . . .121
Computing Trade Discounts . . . .122
Computing a Series
of Trade Discounts . . . . . . . . . . . .123
Complement Method
Shortcut . . . . . . . . . . . . . . . . .124
Computing the Equivalent Single
Discount Rate . . . . . . . . . . . . . . .125
Computing Cash Discounts
for Fully Paid Invoices . . . . . . . . .126
Returned Merchandise
and Freight Charges . . . . . . .127
Computing Cash Discounts
for Partially Paid Invoices . . . . . .129
8 Markup . . . . . . . . . . . . . . . . . . . . . .139
Computing Markup Variables . .140
Computing Markup Based
on Cost . . . . . . . . . . . . . . . . . . . . .141
Computing Selling Price
Directly from Cost . . . . . . . . . .141
Computing Cost
from Selling Price . . . . . . . . . .142
Computing Markup Percent
Based on Cost . . . . . . . . . . . . . . .143
Computing Markup Based
on Selling Price . . . . . . . . . . . . . .144
Computing Cost Directly . . . .144
Computing Selling Price
from Cost . . . . . . . . . . . . . . . .145
Computing Markup Percent
Based on Selling Price . . . . . . . . .146
Part 3: Accounting
Applications 156
9 Banking . . . . . . . . . . . . . . . . . . . . .157
Using Deposit Slips
and Bank Checks . . . . . . . . . . . . .158
Using Checkbooks and Check
Registers . . . . . . . . . . . . . . . . . . . .160
Reconciling Bank Statements . . .161
10 Payroll Records . . . . . . . . . . . . . .175
Preparing a Payroll Register . . . .176
Computing Federal Income Tax
Withholding Amounts . . . . . . . .178
Computing Social Security, Medicare,
and Other Withholdings . . . . . . .184
Completing an Employee’s
Earnings Record . . . . . . . . . . . . . .186
Computing an Employer’s Quarterly
Federal Tax Return . . . . . . . . . . .187
Computing an Employer’s
Federal and State Unemployment
Tax Liability . . . . . . . . . . . . . . . . .189
11 Taxes . . . . . . . . . . . . . . . . . . . . . . . .201
Computing Sales Taxes . . . . . . . .202
Sales Tax as a Percent
of Price . . . . . . . . . . . . . . . . . .202
Sales Tax as an Amount
per Unit . . . . . . . . . . . . . . . . .203
Excise Tax as an Amount
per Unit . . . . . . . . . . . . . . . . .203
Computing Assessed Valuations
and Property Taxes . . . . . . . . . . .204
xii
Contents
CONTENTS
Computing Tax Rates in Percents
and Mills . . . . . . . . . . . . . . . . . . .205
Percents . . . . . . . . . . . . . . . . .205
Mills . . . . . . . . . . . . . . . . . . . .206
Computing Special Assessments,
Prorations, and Exemptions . . . .207
Determining Taxable Income,
Using Standard Form 1040 . . . . .209
Computing Taxable Income .213
Determining Taxes Due, Using
Standard Form 1040 . . . . . . . . . .213
Tax Credits and Net Tax . . . . .215
12 Insurance . . . . . . . . . . . . . . . . . . . .229
Computing Auto
Insurance Costs . . . . . . . . . . . . . .230
Computing Low-Risk
and High-Risk Rates . . . . . . . . . . .231
Computing Short Rates . . . . . . . .232
Computing Coinsurance
on Property Losses . . . . . . . . . . . .233
Computing Life Insurance
Premiums . . . . . . . . . . . . . . . . . . .235
Computing Cash Surrender
and Loan Values . . . . . . . . . . . . .236
Computing Medical Insurance
Contributions and
Reimbursements . . . . . . . . . . . . .237
Part 4: Interest Applications 250
13 Simple Interest . . . . . . . . . . . . . . .251
Computing Simple Interest . . . . .252
Using Calculators . . . . . . . . . .253
Computing Ordinary Interest . . .254
Computing Exact Interest . . . . . .254
Comparing Ordinary Interest
and Exact Interest . . . . . . . . . . . .255
Estimating Exact Simple Interest 256
Combinations of Time
and Interest That Yield 1% . .256
Other Rates and Times . . . . . .256
Estimating Exact Interest . . . .256
Computing the Interest
Variables . . . . . . . . . . . . . . . . . . .257
Finding the Interest Amount,
Principal, Rate, or Time . . . . .258
14 Installment Purchases . . . . . . . .269
Converting Interest Rates . . . . . .270
Computing Simple Interest
on a Monthly Basis . . . . . . . . . . .271
Computing Finance Charges . . . .271
Computing Costs of Installment
Purchases . . . . . . . . . . . . . . . . . . .273
Computing Effective
Interest Rates . . . . . . . . . . . . . . . .275
Increasing the Effective Rate 276
Amortizing a Loan . . . . . . . . . . .278
Computing the Monthly
Payment . . . . . . . . . . . . . . . . .278
Loan Payment Schedule . . . .280
Finding the Monthly Payment
of a Home Mortgage . . . . . . . . .281
Amortization Schedule
for a Mortgage . . . . . . . . . . .282
15 Promissory Notes and
Discounting . . . . . . . . . . . . . . . . .295
Promissory Notes . . . . . . . . . . . . .296
Computing the Number of Interest
Days of a Note . . . . . . . . . . . . . . .297
Determining the Due Date
of a Note . . . . . . . . . . . . . . . . . . . .298
Computing the Maturity Value
of a Note . . . . . . . . . . . . . . . . . . . .300
Discounting Promissory Notes . . .300
Non-Interest-Bearing Promissory
Notes . . . . . . . . . . . . . . . . . . . .302
Bank Discounting . . . . . . . . . . . . .303
Comparing a Discount Rate
to an Interest Rate . . . . . . . . .304
Borrowing Money to Take
a Cash Discount . . . . . . . . . . . . . .305
Contents xiii
GLOSSARYCONTENTS
16 Compound Interest . . . . . . . . . .315
Compute Future Values from
Tables and Formulas . . . . . . . . . .316
Future Value Formula . . . . . .317
Various Compounding
Periods . . . . . . . . . . . . . . . . . .318
Calculators and Exponents . . . . .319
Effective Rates . . . . . . . . . . . . . . .320
Daily Compounding . . . . . . . .321
Compute Present Values from
Future Value Tables . . . . . . . . . . .322
Compute Using Present Value
Tables and Formulas . . . . . . . . . .323
Present Value Formula . . . . . .324
Notes About the Future Value
and Present Value Tables . . . .325
Part 5: Business Applications 342
17 Inventory and Turnover . . . . . . .343
Accounting for Inventory . . . . . .344
Inventory Sheets . . . . . . . . . .344
Perpetual Inventory Systems .344
Computing Inventory, Using
the Average Cost, FIFO, and
LIFO Methods . . . . . . . . . . . . . . .346
The Average Cost Method . .346
The FIFO Method . . . . . . . . . .346
The LIFO Method . . . . . . . . . .347
Computing Inventory at the
Lower of Cost or Market Value .347
Estimating Inventory Value . . . .349
Computing Inventory Turnover . .350
18 Depreciation . . . . . . . . . . . . . . . . .363
Computing Depreciation with
the Straight-Line Method . . . . . .364
Computing Depreciation with
the Units-of-Production Method 365
Book Value . . . . . . . . . . . . . . .365
Computing Depreciation with
the Declining-Balance Method . .366
Computing Depreciation with the
Sum-of-the-Years-Digits Method 368
Computing Depreciation with
the Modified Accelerated Cost
Recovery System . . . . . . . . . . . . .369
Computing Partial-Year
Depreciation . . . . . . . . . . . . . . . .371
19 Financial Statements . . . . . . . . .383
Analyzing Balance Sheets . . . . . .384
Analyzing Income Statements . .386
Computing Business Operating
Ratios . . . . . . . . . . . . . . . . . . . . . .389
Working Capital Ratio . . . . . .389
Acid Test Ratio . . . . . . . . . . . .390
Ratio of Accounts Receivable
to Net Sales . . . . . . . . . . . . . .390
Inventory Turnover . . . . . . . .391
Relationship of Net Income
to Net Sales . . . . . . . . . . . . . .391
Rate of Return on Investment 391
20 International Business . . . . . . . .405
Computing Currency
Exchange Rates . . . . . . . . . . . . . .406
Computing the Effects of Exchange
Rate Changes . . . . . . . . . . . . . . . .407
Computing Duties on Imports . .409
Converting Between U.S. Weights
and Measures and Metric
Weights and Measures . . . . . . . .410
Part 6: Corporate and Special
Applications 424
21 Corporate Stocks . . . . . . . . . . . . .425
Computing the Costs and Proceeds
of Stock Transactions . . . . . . . . . .426
Computing the Costs and Proceeds
of Round and Odd Lots . . . . . . . .429
Computing the Rate of Yield
and Gains or Losses . . . . . . . . . . .430
The Rate of Yield . . . . . . . . . .430
Gain or Loss on Sale of Stock .430
Computing Comparative Earning
Potential . . . . . . . . . . . . . . . . . . .431
xiv
Contents
CONTENTS
22 Corporate and Government
Bonds . . . . . . . . . . . . . . . . . . . . . . .445
Computing Gains and Losses
on Corporate Bonds . . . . . . . . . .446
Computing Annual Interest
on Corporate and Government
Bonds . . . . . . . . . . . . . . . . . . . . . .447
Newspaper Information
on Bonds . . . . . . . . . . . . . . . . .448
Commissions for Buying
and Selling Bonds . . . . . . . . .449
Computing Accrued Interest
on Bond Transactions . . . . . . . . .449
Computing the Rate of Yield
for Bonds . . . . . . . . . . . . . . . . . . .450
Computing the Rate of Yield
to Maturity . . . . . . . . . . . . . . . . .451
23 Annuities . . . . . . . . . . . . . . . . . . . .461
Computing the Future Value of
an Annuity . . . . . . . . . . . . . . . . . .462
Annuity Tables . . . . . . . . . . . .463
Future Value of an Annuity
Formula . . . . . . . . . . . . . . . . .464
Various Payment Periods . . . .464
Using a Calculator to Compute
Annuity Factors (Optional) . .465
Computing Regular Payments of an
Annuity from the Future Value . .466
Sinking Funds . . . . . . . . . . . . .467
Computing the Present Value
of an Annuity . . . . . . . . . . . . . . .468
Present Value of an Annuity
Formula . . . . . . . . . . . . . . . . .469
Using a Calculator to Compute
the Present Value of an Annuity
(Optional) . . . . . . . . . . . . . . . .470
Computing Regular Payments
of an Annuity from the Present
Value . . . . . . . . . . . . . . . . . . . . . .471
Computing the Payment
to Amortize a Loan . . . . . . . . . . .473
Creating a Loan Amortization
Schedule . . . . . . . . . . . . . . . . . . . .474
24 Business Statistics . . . . . . . . . . . .493
Statistical Averages: Computing
the Mean . . . . . . . . . . . . . . . . . . .494
Determining the Median . . . . . .495
Determining the Mode . . . . . . . .496
Constructing Frequency Tables . .496
Computing the Mean of Large
Data Sets . . . . . . . . . . . . . . . . .497
Charts and Graphs: Constructing
Histograms . . . . . . . . . . . . . . . . . .498
Constructing Bar Graphs . . . . . . .499
Comparative Bar Graph . . . . .500
Component Bar Graph . . . . .501
Constructing Line Graphs . . . . . .502
Constructing Pie Charts . . . . . . . .505
Appendix A Answers to
Odd-Numbered
Problems . . . . . . . . . .517
Appendix B Answers to Self-Check
Review Problems . . .526
Glossary . . . . . . . . . . . . . . . . . . . . . . .530
Index . . . . . . . . . . . . . . . . . . . . . . . . . .536
Progress Report . . . . . . . . . . . . . . . .541
Contents xv
GLOSSARYCONTENTS
This page intentionally left blank
Contemporary Business
Mathematics
for Colleges
15e
Fundamental
Review
Part
1
1 Fundamental Processes
2 Fractions
3 Decimals
4 Word Problems and Equations
Fundamental
Processes
Chapter 1 Fundamental Processes 3
Learning Objectives
By studying this chapter and completing all assignments, you will be able to:
Learning Objective
Use shortcuts to add rapidly and accurately.
Use shortcuts to subtract rapidly and accurately.
Use shortcuts to multiply rapidly and accurately.
Use shortcuts to divide rapidly and accurately.
Learning Objective
Estimate answers before doing calculations.
1
1
Learning Objective
2
Learning Objective
3
Learning Objective
4
Learning Objective
5
Learning Objective