In today’s economy, working professionals are required to possess a wide array of skills in order to successfully complete tasks assigned to them. Whether they are front-line employees or owners of a company, business mathematics is an important skill to acquire. In this course, students will learn workplace math skills used on a daily basis. This includes various complex calculations dealing with financials, budgeting, and business statistics.
- Comprehend simple and compound interest and how these and inflation are calculated
- Learn about stocks, bonds, and annuities and how they are calculated
- Acquire knowledge on how to properly account and calculate loans, taxes, insurance, and depreciation
- Successfully be able to calculate financial results that are on financial statements and key business ratios
- Review the concept of budgeting and commonly-used business statistics
Lesson 1: Interest
One of the main revenue drivers for a bank or lending institution is interest. This is a method used where these businesses charge a fee for others to borrow funds from them. Interest can be calculated in many forms but commonly fall into two categories: simple and compound. This lesson reviews both of these options. As an added bonus for those that want to use a financial calculator, the authors provide an appendix as to how to use this device to calculate interest quickly and easily.
Lesson 2: Equity and Loans
As companies grow, two of the most common avenues they can tap into to add liquidity are equity and loans. In this lesson, students will gain workplace math skills with respect to annuities, stocks, and bonds to start. One will be able to determine the present value of an ordinary annuity among other calculations that will be learned. Business and consumer loans are also talked about this lesson and how one can easily calculate payments too.
Lesson 3: Taxes, Insurance, and Depreciation
Inevitably, there are two things that are guaranteed in life: death and taxes. Insurance, to some, is a close third. This lesson reviews workplace math skills that one should have an understanding of when it comes to various types of taxes that a person or business incurs. Depending on one’s business or personal situation, there are often multiple types of insurance that are in place too. Motor vehicles, for example, not only have insurance expenses tied to them but depreciation as well. The second half of this lesson covers that very topic and how to accurately calculate depreciation costs in several different ways.
Lesson 4: Financial Statements, Ratios, and Budgeting
As we wrap up the course, the last set of topics brings all the workplace math topics together into documents that are presented as well as key indicators that show how healthy a business is. Based on data that has been calculated up to this point, there are several financial statements that businesses create to determine how balanced they are as well as to indicate at a specific point in time whether or not they are profitable. Financial ratios are also easy calculations that are talked about in this lesson which can determine how a company OR person is doing in a specific way. Finally, to close out the course, simple business statistic concepts are talked about which can help define trends and areas of opportunity.