Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Learning Objectives:
Introduction
This handout is a review of the basic arithmetic concepts. It forms the basis
for understanding and working with relations (formulas) encountered in
business and economics.
Number Systems
− The decimal (base 10) number system uses the digits (numbers) 0, 1,
2, 3, 4, 5, 6, 7, 8, and 9. This is the number system we use in our
everyday arithmetic calculations such as the monetary transactions.
− Another number system is the binary (base 2) that uses the digits 0
and 1 only. The binary system is used in computers and it is being
taught in electronics courses.
The counting numbers are collectively known as the natural numbers. The
natural numbers, their negatives, and the number zero are collectively
known as the integers.
pg. 1
− A negative number is less than zero and it is written with a minus (–)
sign in front of it. The minus (-) sign in front of a negative number is a
must; otherwise it would not be possible to distinguish the negative
from the positive numbers.
Example
Dias’s checking account shows a balance of Rs.534.29. Thus, we can say that his balance
is +534.39 rupees but we normally omit the plus (+) sign, and we say that his balance is
534.39 rupees.
Addition and Subtraction
The following rules apply for the addition of numbers
− Rule 1:
To add numbers with the same sign, we add the absolute
values of these numbers and place the common sign (+ or –)
in front of the result (sum). We can omit the plus sign in the
result if it is positive. We must not omit the minus sign if the
result is negative.
i. Example : 7 + 16 + 0.5
ii. Example : (–6) + (–45)
iii. Example : (–1.25) + (–0.75) + (-3)
− Rule 2:
To add two numbers with different signs, we subtract the
number with the smaller absolute value from the number with
the larger absolute value, and we place the sign of the larger
number in front of the result (sum).
i. Example : 37 + (–15)
ii. Example : (–16) + 7
− Rule 3:
To subtract one number (the subtrahend) from another
number (the minuend) we change the sign (we replace + with
– or – with +) of the subtrahend, and we perform addition
instead of subtraction.
i. Example : 39 – 25
ii. Example : 53 – (–18)
iii. Example : (–86) – 37
iv. Example : (–75) – (–125)
pg. 2
In general, let “a” be any number; then, the following relations apply for
the possible combinations of addition and subtraction of positive and
negative numbers.
+ (+a) =+a = a
+ (-a) = – a
– (+a) = –a
– (-a) = a
i. a + (- b) =a–b
ii. a – (+b) =a–b
iii. a – (- b) =a+b
− Multiplier
The dictionary defines multiplier the number by which another
number is multiplied.
− Multiplicand
The multiplicand is defined as the number that is or is to be multiplied by
another. Thus, in 5 x 3, the multiplier is 5 and the multiplicand is 3. The
result of the multiplication is called the product. The following rules apply
for multiplication and division of numbers:
− Rule 1:
When two numbers with the same sign are multiplied, the product
will be positive (+). If the numbers have different signs, the
product will be negative (–).
i. Example : 39 x 25
ii. Example : 53 x (–18)
iii. Example : (–86) x 37
iv. Example : (–75) x (–125)
pg. 3
i. a x (-b) = - (a x b)
ii. (-a) x b = - (a x b)
iii. (-a) x (-b) = a x b
Division
In division, the number that is to be divided by another is called the dividend. For
27
instance, the number is a rational number and the dividend is 27. The
3
dividend is also referred to as the numerator. The number, by which the dividend
is to be divided, is called the divisor. For instance, in the division operation above,
the divisor is 3. The divisor is also called the denominator. The number obtained
27
by dividing one quantity by another is the quotient. Thus, in = 9, the quotient
3
is 9.
− Rule 2:
When two numbers with the same sign are divided, the quotient
will be positive (+). If the numbers have different signs, the
quotient will be negative (–).
125
i. Example :
5
−750
ii. Example :
10
1500
iii. Example :
- 75
- 450
iv.Example :
- 15
pg. 4
A decimal point is the dot in a number that is written in decimal form. For
instance, the number 5.3 is written in decimal form, and the dot between 5 and 3
is referred to as the decimal point. Every number has a decimal point although it
may not be shown.
A number is classified as an integer, fractional or mixed depending on the position
of the decimal point in that number.
− Integer
An integer number is a whole number and it is understood that its decimal
point is positioned after the last digit (rightmost) although not shown. For
instance,
8 = 8.
-405 = -405.
3245 = 3245.
− Fractional numbers
A fractional number, positive or negative, is always a number less than one.
3
It can be expressed in a rational form such as or in decimal point form
4
such as 0.75. When written in decimal point form, the decimal point
appears in front of the first (leftmost) digit. For instance,
1 −1
= .5 = 0.5 = -.25 = - 0.25
2 4
1 −1
Where and are fractional numbers expressed in rational form, and
2 4
0.5 and – 0.25 are fractional numbers expressed in decimal point form.
− Mixed numbers
A mixed number consists of an integer and a fractional number. For
instance, the number 409.0875 consists of the integer part 409 and the
fractional part 0.0875as shown below.
409.0875 = 409. + 0.0875
Fractional
Integer
Mixed
− Rule 1:
Any number (integer, fractional or mixed) may be written in a
rational form where the numerator (dividend) is the number itself
and the denominator (divisor) is 1.
22
For instance, the numbers 13, 385, 2.75, and may be written as 13 =
7
22
13 385 2.75
, 385 = , and 7 .
1 1 1
1
pg. 5
Reciprocals of Numbers
The reciprocal of an integer number is a fraction with numerator 1 and
denominator that number itself. Alternately, since any number can be considered
as a fraction with denominator 1, the reciprocal of a fraction is another fraction
with the numerator and denominator reversed. Consequently, the product
(multiplication) of any number by its reciprocal is 1.
When either the sign of the numerator or the denominator (but not both) is
negative, it is customary to place the minus sign in front of the bar that separates
them. For instance,
−5 5
i. =-
8 8
4 4
ii. =-
−11 11
We must not forget that when the sign of both the numerator and denominator is
minus, the result is a positive number in accordance with Rule.
− Rule 1:
A rational number in which the numerator and denominator are the
same number is always equal to 1 with the proper sign.
For instance,
7
i. =1
7
−12 12
ii. =- =-1
12 12
Rule 2:
As a consequence of Rule 2, the value of a rational number is not
changed if both numerator and denominator are multiplied by the same
number.
− Terminating decimal
pg. 6
A decimal that ends is a terminating decimal. In other words, a terminating
decimal doesn’t keep going. A terminating decimal will have a finite number
of digits after the decimal point.
Example: The following are examples of rational numbers that have a
terminating decimal representation:
1 2 5
= 0.125, = 0.12, = 1.25
8 25 4
− Recurring decimal
A decimal number that has digits that repeats forever.
Example: The following are examples of rational numbers that have a
recurring decimal representation:
1/3 = 0.333…
77/600 = 0.128333…
− The distance of the Earth from the Sun is approximately 149,500,000 km.
pg. 7
− The mass of an electron is 0.000000000000000000000000000911 g.
a × 10b
Where 1 ≤ a < 10, and b is an integer. A practical reason for the use of the
standard form is that it allows calculators and computers to display more
significant figures than would otherwise be possible.
For example,
The power gives the number of decimal places the decimal point needs to be
moved to the right in the case of a positive power or the number of decimal places
the decimal point needs to be moved to the left in the case of a negative power.
For example
Example: 1
Multiply 4,000,000 by 23,000,000,000
pg. 8
Solution:
Example: 2
Multiply 0.00029 by 0.000003
Solution:
Example: 1
Divide 45,000,000 by 1,500,000
Solution
Percentages
To convert a fraction to a percentage, we multiply the fraction by 100%.
For example
3 3
i. = x 100% = 75%
4 4
3 3
ii. = x 100% = 23.077%(to the three decimal places)
13 13
For example,
45 9
45% = =
100 20
Where the fraction has been simplified by dividing the numerator and
denominator by 5 since this is a common factor of 45 and 100.
pg. 9
• To find the percentage of a quantity, we multiply the quantity by the
number and divide by 100.
For example:
25
i. 25% of 140 is x 140 = 35
100
4
ii. 4% of 5, 200 is x 5200 = 208
100
• In general, if the percentage increase is r%, then the new value of the
investment comprises the original and the increase. The new value can be
r
found by multiplying the original value by the factor 1 + .
100
• It is easy to work in the reverse direction and determine the original value if
the new value and percentage increase is known. In this case, one simply
r
divides by the factor 1 + .
100
Example
The cost of a refrigerator is Rs.350.15 including sales tax at 17.5%. What is the
price of the refrigerator without sales tax?
Example
A person’s income is Rs.25, 000 of which Rs.20, 000 is taxable. If the rate of
income tax is 22%, calculate the person’s net income.
Example
pg. 10
Joe Smith bought common stock of ABC Corporation at Rs.15.00 per share. Three
months later he sold his stock at Rs.21.50 per share. What was his profit
expressed in percent?
X5 = X x X x X x X x X
i. a m xa n = a m + n vi. ( ab ) m = a mb m
am a
n
a n
ii. n
= a m−n vii. = n (b ≠ 0 )
a b b
iii. (a )m n
= a mn
viii.
1
= a −m
am
1
iv. m
a =a m
ix. a 0 =1
n
v. m
a =a
n m x. a1 = a
pg. 11