BUSINESS MATH Example:

Fraction – numbers which can be written as the 8 5

Find 3 + 5
quotient of two whole numbers. 9 6
Proper fraction – numerator is lesser or lower
Solution:
than its denominator.

Improper fraction - numerator is greater or 8 5 8 5 )=

3 + 5 = (3 + 5) + ( +
equal to denominator. 9 6 9 6

Mixed number - is the sum of a whole number *Must first make the denominators equal
and a proper fraction.
16 15 31 13 13
Denominator – number of equal parts into 8+ ( + )= 8 = (8 + 1) = 9
18 18 18 18 18
which the whole has been divided.
* NOTE that the resulting fraction part was
Numerator – number of parts that is taken. improper , therefore it was changed to a mixed
fraction.
Similar Fractions – fractions which have the
same denominator; otherwise, they are called Multiplication of Fractions
Dissimilar Fractions.
 Multiply the numerators of the fractions to
 To convert two or more dissimilar fractions get the new numerator.
into similar fractions, we will use LCD or  Multiply the denominators of the fractions
least common denominator. to get the new denominator.
Addition and Subtraction of Fractions
Example:
 To add or subtract two or more similar
fractions, add or subtract numerators and 1 2 1 ×2 𝟐
copy the denominator.
x = =
5 3 5×3 𝟏𝟓
Example: Division of Fractions

1 2 3  Find the reciprocal of the second fraction.

+ =
5 5 5 Multiply the number by the reciprocal of
 To add or subtract two or more fractions the fraction. Simplify the resulting fraction if
which are dissimilar, you must first convert possible.
them to similar fractions before performing
the addition and subtraction. Example:
5 3 5 4 20
Example: ÷ = × =
7 4 7 3 21
3 2
Find -
4 3
DECIMALS AND PERCENT
*LCD of 4 and 3 is 12. Divide your LCD which is Decimal fractions – fractions whose
12 to your denominator. denominators are positive powers of ten.
12 ÷ 4 = 3 ; 12 ÷ 3 = 4 Terminating decimal – decimal with a finite
*Multiply the answer to your numerator. number of decimal places.

3 x 3 = 9 ; 4x2 = 8 Nonterminating decimal – sequence of digits in

the quotient which repeat over and over.
*Now we have a numerator 9 and 8, and get
your LCD as your denominator. Percent – comes from the Latin phrase per
centum, which means “by the hundred”
9 8 𝟏
- = - It is a way of expressing how large a
12 12 𝟏𝟐
fraction of the whole is represented by
 To add or subtract mixed fractions add the a given number if the whole were
whole parts of the mixed fractions first and subdivided into a hundred equal parts.
then the fraction parts.
Percentage – size of the part which corresponds
to the indicated percent .
 Interest – money deposited in a bank or many we can erase the extras; if we don't
invested elsewhere earns profit. add enough, we can add more.
Computations involving percent

r b So,
2
where, p is the percentage, r is the rate and = 0.080
25
b is the base

Simple interest formula *Move the decimal point two places to the
right and add the percent sign.
I=pxrxt (converting decimal to percent)
2
Where I represents the interest, p is the Therefore, the fraction is equivalent
25
principal or amount invested, r is the to 8%.
interest rate and t is the length of time

To find the amount:  To convert percent to decimal,

drop the percent sign and move
A = P(1 + rt) the decimal point two places to
Conversion among fractions, decimals and the left.
percent
Example:
 To convert a fraction to a decimal,
divide the numerator by the
denominator.

Example:
23  To convert percent to fraction,
= 0.92 first convert it to a decimal, then
25
convert the decimal to fraction.
7
6 = 6. 78 Example:
9
 To convert a decimal to fraction, Convert 75% to a fraction.
write the decimal as a decimal
fraction. 75% = 0.75
75 3
Example: 0.75 = or
100 4
Convert 0.15 to a fraction.
15 3
0.15 = or RATIOS
100 20

* if there are two numbers after the decimal
point, then use 100, if there are three then use
1000, etc.
 To convert a fraction to percent,
first convert the fraction to a
decimal, then convert the decimal
to percent.
Ratio – is a comparison of the sizes of two
or more quantities.
Terms – numbers that belong to a given
ratio.
Rate – quantities being compared cannot
be expressed in the same unit.

Example: Examples:
2 2.5 25 5
Write as a percent. = = or 5:7
25 3.5 35 7

Since 25 is larger than 2 , in order to divide, we

must add a decimal point and some zeroes after
the 2 . We may not know how many zeroes to
add but it doesn't matter. If we add too
PROPORTIONS
Proportion – statement expressing the
equality of two ratios. In a form a:b = c:d,
the numbers a and d are called the
extremes, while b and c are called the
means.
Extremes – Means Property of Proportions
– states that in a proportion, the product of
the means is equal to the product of the
extremes.
Direct Proportions - as one amount
increases, another amount increases at the
same rate.
y = kx
Indirect Proportions - when one value
decreases at the same rate that the other
increases.
𝒌 sold.
y=
𝒙 Gross margin – ratio of the markup to the
Partitive Proportions – quantity is divided into
two or more parts such that the parts are in a
definite ratio with each other.
*To solve problems involving partitive
proportions, we usually equate the sum of the
parts to the whole quantity.
Example:
A piece of wood was in the length of 204, with a
ratio of 1:5. Find the measurements.
*First add them, then place x.
1x+5x=204
*Then add all terms
6x=204
Divide both sides by 6
x=34
Substitute the value:
34:170 or 1:5
SINGLE TRADE DISCOUNTS AND DISCOUNT
SERIES
Supply chain – movement of materials as they
flow from their source to the end customer.
Manufacturer – Distributor – Wholesaler
– Retailer - Consumer
Trade Discounts - list price reductions that a
business may offer to its business customers.
Discount series – trade discount that has two or
more discounts
Compute Net price with the Discount method
Step 1: Discount = Trade Discount x List price
Step 2: Net price = List price – Discount
Compute Net price with the Complement
method
Step 1: Complement rate = 100% - Trade
discount rate
Step 2: Net price = Complement rate x List
price
MARKUP AND MARKDOWN
Markup – amount of money that businesses
add to the cost to an item they purchased, so
that when they sell them, they can cover their
initial expenses and make a profit.
Selling price – price at which the item is actually
selling price
Markdown (discount) – amount that the
business deducts from the selling price of an
item.
Markdown rate (discount rate) – percent of the
original selling price.
Sale price - difference between the original
selling price and the markdown.
Compute Selling price with Markup based on
cost
Step 1: Markup = Rate of Markup x Cost
Step 2: Selling price = Cost + Markup
Compute Cost with Markup based on Selling
price
Step 1: Markup = Rate of Markup x Selling
price
Step 2: Cost = Selling price - Markup
Compute Sale Price
Step 1: Markdown = Rate of Markdown x
Selling price
Step 2: Sale price = Selling price - Markdown
Gross Margin
𝑀𝑎𝑟𝑘𝑢𝑝
Gross Margin =
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒