This course is designed to provide instruction in the practical application of mathematical concepts and techniques to business related problems.  Specific areas include:

• maintenance of checkbook records and periodic bank statement reconciliation
• determination of gross wages by using various common methods
• calculation of net payroll wages
• periodic employer payments to federal and state agencies
• comparison and selection of commercial discounts
• determination of markup and markdown of merchandise
• depreciation by common methods and the annual cost recovery for various business assets
• calculation of ordinary and exact interest on promissory notes
• determination of present values
• discounting of simple interest and bank discount notes
• calculation of compound interest and present value at compound interest
• determination of multiple payment plans
• applications involving annuities, sinking funds and amortization
• distribution of corporate and partnership profits

You will find the information and skills from this course helpful in other business courses such as accounting, finance, management, and marketing.  Also, you can apply these course skills to transactions in your personal life.  Most of us have checking accounts; we are remunerated for services performed; as consumers we buy goods and services from merchants; and if we aren't borrowing money, we may want to lend ours to others.

If you do well in this course, you will be able to:

1. Define and use correctly the terminology associated with each topic.
2. Prepare bank reconciliation.
3. Compute employee gross earnings based on:  salary, commission, hourly rates, and production.
4. Determine payroll deductions from gross wages and compute taxable bases for Social Security and unemployment taxes.
5. Given appropriate data, determine various quantities involving the mathematics of retailing:  net cost of merchandise to a retailer, percent markup based on either cost or selling price, the regular selling price, reduced selling price, the percent of markup when merchandise is sold at a reduced price, the breakeven point, and the selling price per unit on perishable items.
6. Compute the annual cost recovery using the modified accelerated cost recovery tables and calculate the annual depreciation of a business asset using any or all of the following methods:  straight line, sum of the digits, declining balance, and units of production.
7. Calculate the interest, maturity value, present value, discount, and proceeds of promissory notes, and compare the similarities and differences between simple interest and bank discount notes.
8. Given appropriate data, compute various quantities involving the mathematics of finance; the total interest paid and the amount due on maturity date using the United States Rule on partial loan payoff plans, average daily balance on revolving charge accounts, the total cost, finance charge and annual percentage rate of installment loans, unearned interest by the Rule of 78, the compound interest by formula and by tables, the present value of compound interest, amount and present value of an annuity, amount of a sinking fund payment, amount of a loan amortization payment and an amortization schedule.
9. Compute the dividends per share for common and preferred corporate shareholders.  Divide the profits and losses in a partnership according to various methods stipulated in partnership agreements.

Your course grade will be determined by 11 assignments, 5 discussions, and 4 exams according to the following points:

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