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Business Mathematics Edition 2

Business Mathematics E-Workbook

Introduces the fundamental mathematical tools that are used in finance and builds a working knowledge of basic business calculations by providing unlimited practice of real world applications. Complexity of the mathematical formulas is minimised by the use of financial tables. This E-Workbook is suitable for students with no previous experience of financial transactions or the mathematics that underlie them.

Fundamental concepts

  • Concepts of risk and return
  • The time value of money
  • Positioning of cash flows on a timeline

Simple interest

  • Calculating the amount of simple interest
  • Calculating the number of days between dates
  • Future value at simple interest
  • Present value at simple interest
  • Finding the interest rate and time period
  • Promissory notes at simple interest

Compound interest

  • Nominal, effective and equivalent rates
  • Future value at compound interest
  • Present value at compound interest
  • Finding the interest rate and time period
  • Equations of value


  • Future value of an ordinary annuity
  • Present value of an ordinary annuity
  • Present value of a deferred annuity
  • Present value of a perpetuity
  • Finding the periodic payment

Applications to personal finance

  • Finding the periodic payment for a housing loan
  • Calculating a loan repayment schedule
  • Applications of business mathematics to bank accounts and credit cards

Applications to corporate finance

  • Pricing a bond on a coupon date
  • Making investment decisions based upon net present value
  • Share valuation