Business Mathematics MAT402

Course Information

Course Learning Outcomes

At the end of the course, students should be able to:

1. Describe the concepts and mathematical terms encountered in business, finance, investment and income tax assessment. ( C2 )

2. Solve basic mathematical problems in the specific area of business, finance, investment and income tax assessment. ( C3 )

3. Evaluate the combination of concepts and mathematical terms involved in financing business, providing loan, installment purchase, trading or retailing. ( C6 )

Course Description

The course is primarily designed to develop the mathematical knowledge needed by the students to meet the demands of business operation. It is to provide a solid coverage of the most basic and frequently occurring business situations.

Syllabus Content

1. Sequence
   • Introduction to sequence
     
   • Arithmetic sequence
     
   • Finding the nth term and the sum of the first n terms
     
   • Geometric sequence
     
   • Finding the nth term and the sum of the first n terms
2. Simple Interest
   • Introduction to interest
     
   • Basic Islamic banking concept
     
   • Comparison between conventional and Islamic banking
     
   • Simple interest formula
     
   • Simple amount formula
     
   • Exact time and approximate time
     
   • Ordinary simple interest and exact simple interest
     
   • Banker’s Rule
     
   • Present Value
3. Bank Discount and Promissory Notes
   • Introduction to bank discount
     
   • Introduction to promissory note
     
   • Simple interest rate equivalent to bank discount rate
4. Compound Interest
   • Time value of money
     
   • Introduction to compound interest
     
   • Important terms use in compound interest
     
   • Compound interest formula
     
   • Present Value
5. Annuity
   • Introduction to annuity and types of annuities
     
   • Future value of ordinary annuity certain
     
   • Present value of ordinary annuity certain
     
   • Solving for R and n
6. Installment Purchase
   • Introduction to installment purchase
     
   • Interest based on original balance
     
   • Interest based on reducing balance – constant ratio formula
     
   • Unpaid principal balance using Rule of 78
7. Trade and Cash Discounts
   • Introduction to trade discount
     
   • Net price formula
     
   • Chain discount
     
   • Single discount equivalent to chain discount
     
   • Cash discount
8. Mathematics of Retailing
   • Cost, selling price, profit, loss
     
   • Mark up and mark down
     
   • Profit and loss: Gross profit, net profit and breakeven price
     
   • Trade discount & Mathematics of retailing
9. Depreciation
   • Introduction to depreciation
     
   • Straight line method
     
   • Declining balance method
10. Personal Income Tax
    • Introduction to Income tax
      
    • Deductions allowed
      
    • Taxable income
      
    • Rebates
      
    • Tax rate schedule
      
    • Tax assessment for individual who is single
      
    • Tax assessment for individual who is married – separate and combine assessment

Transferable Skills

• Demonstrate ability to identify and articulate self skills, knowledge and understanding confidently and in a variety of contexts. -Demonstrate ability to investigate problems and provide effective solutions.

• Demonstrate ability to analyse issues/problems from multiple angles and make suggestions.

Course Assessment

Final examination – One 3-hour paper : 60%
Course Work (Continuous assessments) : 40%
- Test (3) : 30%
- Quizzes (3) : 6%
- Assignments (2) : 4%

Recommended Text

1. Lau Too Kya,Phang Yook Ngor,Wee Kok Kiang, Business Mathematics for UiTM, 4rd, Oxford Fajar Sdn. Bhd, 2012, ISBN: 9789676571601

References

1. Paul Lau Ngee Kiong, Business Mathematics, UiTM Press, 2013, ISBN: 9789673634446
   
2. Gary Clendenen,Stanley A. Salzman, Business Mathematics, 13th, Pearson College Division, 2014, ISBN: 9780321955050
   
3. James Deitz,James Southam, Contemporary Business Mathematics for Colleges, 16th, Cengage Learning, 2012, ISBN: 9781111821326
   
4. Eugene Don,Joel Lerner, Schaum’s Outline of Basic Business Mathematics, 2ed, 2nd, McGraw-Hill, 2009, ISBN:9780071611589

Assessment Evidence

20202

Quiz 1 (2%)
Test 1 (10%)

20204

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