No matter what your career, business math will give you indispensable real-world knowledge to help you take control of your finances. Take the first step in making better choices with your money by getting familiar with business mathematics.
What Is Business Math?
Business math is a type of mathematics course that is meant to teach people about money and provide them with the tools they need to make informed financial decisions. Business math not only teaches about the specifics of finances related to owning and operating a business but also offers helpful advice and information related to personal finance. These classes prepare any consumer to manage their finances responsibly and profitably by explaining everything they need to know about accounting, economics, marketing, financial analysis, and more. Business math will help to make the ins and outs of money and commerce make sense, even to the most math-averse individuals, using relevant and authentic applications.
Why Take Business Math?
Business math is not just for business owners, contrary to what its name might suggest. A number of different professionals utilize business math-related skills every day.
Bankers, accountants, and tax consultants all need to become well-acquainted with every aspect of corporate and personal finance in order to deliver appropriate advice and problem solve with customers. Real estate and property professionals also employ business mathematics often when calculating their commission, navigating the mortgage process, and managing taxes and fees upon closing a deal.
When it comes to professions that deal more with capital allocation, such as investment consulting and stockbroking, understanding investment growths and losses and making long-term financial predictions is a fundamental part of the daily job. Without business math, none of these jobs could function.
For those that do own a business, business math is even more important. Business math can help these individuals to be successful by providing them with a solid understanding of how to manage goods and services to make a profit. It teaches them how to juggle discounts, markups, overhead, profits, inventory management, payroll, revenue, and all of the other complexities of running a business so that their career and finances can flourish.
Topics Covered in Business Math
Economics, accounting, and other consumer math subjects likely to be taught in a business mathematics course include:
Financial Statements (personal or business)
Future and Present Values
Investment and Wealth Management
Markups and Markdowns
Mortgage Finance and Amortization
Taxes and Tax Laws
Simple and Compound Interest
Mathematical Skills That Will Prepare You for Business Math
If you decide that a business math course will help further your career or if you would just like to be more financially savvy, a strong understanding of the following mathematical concepts will help to prepare you for this course.
Be comfortable reading, writing, and making estimates for whole numbers up to 1,000,000.
Be able to add, subtract, multiply, and divide any integers (using a calculator if needed).
Fractions, Decimals, and Percentages
Be able to add, subtract, multiply, and divide fractions, simplifying as needed.
Be able to calculate percentages.
Be able to convert between fractions, decimals, and percentages.
Be able to solve equations with one or more variables.
Be able to calculate proportions.
Be able to solve multi-operational equations.
Be able to correctly apply values and variables to any given formula (e.g. when given the formula for calculating simple interest, I=Prt, be able to input the correct values for P=principal, r=interest rate, and t=time in years to solve for I=interest). These formulas do not need to be memorized.
Be able to solve for the mean, median and mode of a data set
Be able to interpret and understand the significance of the mean, median, and mode.
Be able to interpret different types of graphs and charts such as bar and line graphs, scatter plots, and pie charts to understand the relationships between different variables.