Business Mathematics is mathematics used by Business enterprises to record and manage their business operations. Commercial organizations normally use mathematics in accounting to make their financial accounts,inventory management to manage their stock levels, marketing of their products and services, sales forecasting for the future , and in financial analysis . Business Training in Kenya has more articles.
Business Mathematics typically includes arithmetic, algebra, economics, statistics and probabilities. Business management can be made more efficient and effective in most cases with the use of more advanced mathematics such as calculus ,matrices, algebra and linear programming and integration.
Business Mathematics normally gives people problems of understanding but not so for one who does not have an attitude against mathematics and on the understanding of the subject. Business mathematics is very essential for use in businesses
Business mathematics is a branch of mathematics just as algebra, geometry, and statistics. Business mathematics can also be referred to as arithmetic.
Scope of Business Mathematics
Business mathematics includes such topics and subtopics as simple interest, compound interest, percentages, distances, capitalization, capital rationing, capital budgeting, simple interest. Such topics will obviously create problems. Even though business mathematics seems difficult it is very useful in real life. When buying or selling some goods, you cannot calculate your profit or loss if you don’t know business mathematics. When it comes to money borrowing from others generally persons who you don’t know, you should know simple interest otherwise they may cone you.
Scope of Business Mathematics Continued
For academic purposes business mathematics includes mathematics courses taken at an undergraduate level by business, commerce, economics, education and even engineering students. Business mathematics is slightly less difficult and does not always go to the equal depth as other mathematics courses for people majoring in mathematics or science fields. The two most common business mathematics courses taken in this form are Business Calculus and Business Statistics. Examples of problems in business mathematics are usually real-life problems from the business world.
Business mathematics includes such things as
Incurring debt and making a series of payments to reduce this debt till you finish your debt is a n example of a real life business mathematics scenario. It is something we all must do in our lifetime as we make purchases that would only be feasible if we are given sufficient time to pay down the amount of the transaction.
In business mathematics this is referred to as ‘amortizing’ a debt or amortization, a term that takes its roots from the French term ‘ amortir’, which is the act of providing death to something.
Basics of business mathematics
The basic definitions required for someone to understand the concept of business mathematics are an understanding of the words principal, interest rate and time abbreviated as P, R and T respectively. Where P is the initial amount of the debt, T is the time taken to clear it and interest rate is the amount you pay for using someone else’s money
Conclusion On Business Mathematics
Business mathematics is a very essential element in any calculation in real life though seen to be hard by many. One should try and do it for the better. Businesses too should apply business mathematics concepts in their daily life calculations. And thus Business Mathematics