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 the review of basic arithmetic skills, bank services, payroll, buying and selling of goods and services, and various complex calculations (e.g. financials, budgeting, and business statistics).
- Gain an understanding of arithmetic fundamentals – including whole numbers, decimals, fractions, percents, and equations
- Accurately explain and apply the concept of PEMDAS, a common tool for doing calculations
- Review core business math skills to efficiently operate a business (e.g. bank services, payroll, product procurement)
- 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 statistic
Lesson 1: Arithmetic Basics
In order to gain the fundamentals of different math concepts used in the workplace, one must have a firm understanding of basic concepts. This lesson takes walks students through a comprehensive review of the foundations of workplace math: whole numbers, decimals, fractions, and percents. To successfully complete the course, one will need to study these carefully so everything else going forward will be easier to learn.
Lesson 2: Equations and Formulas
Building on the foundation from the previous lesson, equations and formulas are, by far, the most important techniques used in workplace math on a day-to-day basis. Decisions made at a company are dependent on the results of the outcomes of these calculations. Knowing how to do them properly is critical to the success of a business and often more than people know. In this lesson, students will gain comprehension on how to set up equations and formulas using data provided and through critical thinking skills. One of the most important takeaways from this lesson is the Order of Operations (or also known as PEMDAS) as all equations depend on this technique to obtain accurate answers. Additionally, various types of equations will be explored that are likely to be used in the workplace each day.
Lesson 3: Basic Business Operations
What is the main goal of a business? This question may seem trivial in the grand scheme of things but of course, it is to make a profit and be successful. In order to do that, a company needs to have a place to put money earned from their customers or clients and pay expenses. This lesson reviews workplace math concepts that strictly focus on bank services and payroll. Bank services aren’t just putting money into an account. Rather, it is a little more complex than that. Payroll, often one of the biggest expenses, is an important concept to understand as well so proper compensation can be given to all that work for a business.
Lesson 4: Mathematics of Buying and Selling
Funds flowing through a business much like water going down a stream. In order to make those funds that are deposited into bank accounts, goods and services have to be sold to customers to clients. In this lesson, students will gain knowledge of the mathematics of buying and selling. Students should pay special attention to different discounts and dating methods that can be used to calculate net costs that customers may pay and revenues the business is apt to receive when a transaction closes.
Lesson 5: 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 6: 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 7: 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 8: 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.