Welcome to….

Business Mathematics!!!

Debashis Saha
Lecturer, Jahangirnagar University
 Finding Me
• Office Hours
– Saturday to Thursday
– 9:30 AM to 1:00 PM
– or by appointment
• E-Mail
– debashissaha1986@gmail.com
• Mobile
– 01722898847

Debashis Saha, Lecturer, 2

Jahangirnagar University
 Text and Resources
– Kashyap Trivedi & Chirag Trivedi,2011,
Business mathematics
– Robert L. Brown, Steve Kopp and Petr Zima,
Mathematics for Finance
– D.C. Sanchetti and V. K. Kapoor, Business
Mathematics
– P.N. Arora and P.C. Bogga, Business
Mathematics for Commerce and Economics

Debashis Saha, Lecturer, 3

Jahangirnagar University
 Course Summary-
Assessment

Final Exams Mid-Term Quizz-es Presentation

+ Attendance
40% 30% 15% 15%

Participation ??? (up to a full letter grade)

Debashis Saha, Lecturer, 4

Jahangirnagar University
 Exams

• Multiple choice questions

• Sometimes short analysis questions
• Exams increase in weight as semester goes on
(90, 100, 110 points)
• Tests can include anything assigned for reading or
discussed in class

Debashis Saha, Lecturer, 5

Jahangirnagar University
 What is mathematics?
• Mathematics is the science of order, space,
quantity and relation. It is that science in
which unknown magnitudes and relations
are derived from known or assumed ones by
use of operations defined or derived from
defined operations.

Debashis Saha, Lecturer, 6

Jahangirnagar University
 Business mathematics
Business mathematics used by commercial enterprises to
record and manage business operations. Commercial
organizations use mathematics in accounting, inventory
management, marketing, sales forecasting, and financial
analysis. Mathematics typically used in commerce
includes elementary arithmetic, elementary algebra,
statistics and probability. Business management can be
done more effectively in some cases by use of more
advanced mathematics such as calculus, matrix algebra
and linear programming.
Debashis Saha, Lecturer, 7
Jahangirnagar University
 Importance of business
mathematics:
• Business mathematics is essential to keep track of an organization day to day operation.
• To record daily transaction of business: An organization uses business mathematics to keep
record of their daily transaction. How much product they sold today? How much profit
organization earned from today's operation etc. are calculated using business mathematics.
• To forecast production: Organizations analyzes there product demand and uses business
mathematics to determine how much production should be done meet up these demand.
• To forecast sales volume: Once an organization determine their production they calculate
their sales volume using business mathematics.
• To calculate profit or loss: Organizations uses business mathematics to calculate their total
cost (TC), total revenue (TR) and total profit (TP) from the operation.
• To reduce wastage: If a company forecast their production than they can determine what
resources they need such labor, funds etc. And business mathematics is essential to determine
these resources. This way an organization can reduce wastage of resources.

Debashis Saha, Lecturer, 8

Jahangirnagar University
COURSE DESCRIPTION

Course Objectives: • understanding basic terms in the areas of business calculus

and
financial mathematics,
• independently solving of business problems.
Learning outcomes 1. define basic terms in the areas of business calculus and
On successful financial
completion of this mathematics,
course, student should 2. explain basic methods of business calculus, types and
be able to: methods of
interest account and their basic applications in practice,
3. solve problems in the areas of business calculus, simple
and
compound interest account, use of compound interest
account,
loan and consumer credit,
4. discern effects of various types and methods of interest
account,
5. connect acquired knowledge and skills with practical
problems in
9
economic practice.
 Course content
• Number • Interest
• Surds • Profit/loss
• Indices • Depreciation
• Functions • Commission &
• Set theory brokerage
• Equation • Time value of money
• Logarithm • Matrix
Debashis Saha, Lecturer, 10
Jahangirnagar University
 Introduction
A number system defines a set of values used to
represent a quantity. We talk about the number of
people attending school, number of modules taken
per student etc.
Quantifying items and values in relation to each
other is helpful for us to make sense of our
environment.
The study of numbers is not only related to
computers. We apply numbers everyday, and
knowing how numbers work, will give us an
insight of how computers manipulate and store
numbers.
 Brief Introduction About
Numbers
A number is a mathematical object used in counting
and measuring. It is used in counting and measuring.
Numerals are often used for labels, for ordering serial
numbers, and for codes like ISBNs. In mathematics,
the definition of number has been extended over the
years to include such numbers as zero, negative
numbers, rational numbers, irrational numbers, and
complex numbers.
 Brief Introduction About
Numbers
Numbers were probably first used many thousands of
years ago in commerce, and initially only whole numbers
and perhaps rational numbers were needed. But already in
Babylonian times, practical problems of geometry began
to require square roots.
Certain procedures which take one or more numbers as
input and produce a number as output are called
numerical operation.
Types of numbers
 Number system
 In earlier days, people used to exchange their things for other
things. The requirement for numbers primarily originated from
the need to count.
 They used the numbers 1,2,3,.that served the people for many
years because all they needed to count was their crops, and
animals.
 Later on numbers such as zero, integers, rational numbers,
irrational numbers were introduced.
 There is evidence that as early as 30,000 BC our ancient
ancestors were tallying or counting things. That is where the
concept of number systems began.

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 Numbers
 Natural Numbers:
A natural number is a number that comes naturally,
 Natural numbers are greater than zero we can use this
numbers as counting numbers: {1, 2, 3, 4, 5, 6 ….…, }.
 Whole numbers:
 Whole numbers are just all the natural numbers plus a zero:
{0, 1, 2, 3, 4, 5, ……………… ,}.

 If our system of numbers was limited to the Natural

Numbers then a number such as –2 would have no
meaning. The next number system is the Integers.

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 numbers
 Integers:
 Integers include the Natural numbers, zero, and the negative
Natural numbers.
 Numbers in the form of negative and positive numbers {
….-4, -3, -2, -1, 0, 1, 2, 3,4, …. }.
 Rational number: p
 Which can be written in the form of . q

 Where p and q are integers and q ≠ 0 is called a rational

number, so all the integers are rational number .

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 numbers
p
 Irrational numbers :
q
 The number can not be written in the form of .
 Pythagorean in Greece were first to discover irrational
number .
 2, 3,  are irrational number .

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 numbers
 Real numbers:
 All the numbers including rational and irrational numbers
are called real number
 The official symbol for real numbers is a bold R.

 Prime numbers:
 The real number which is divisible by 1 and itself is called
prime number Ex- 1,2,3,5,7,11,13,17, …..

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 The Real Number System
Real Numbers
(all numbers are real)

Rational Numbers Irrational Numbers

…any number that is
…-5, -4, -3, -2, -1, 0, 1, 2, 3, 4, 5 not rational
Natural Numbers Example:
= 3.14159……
Whole Numbers e= 2.71828…..
Integers
p
Which can be written in the form of .
q
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 Complex number
Moving to a greater level of abstraction, the real numbers
can be extended to the complex numbers. This set of
number arose historically, from trying to find closed
formulas for the roots of cubic and quadratic polynomials.
This led to expressions involving the square roots of
negative numbers, eventually to the definition of a new
number: the square root of negative one denoted by “I”.
The complex numbers consist of all numbers of the form
(a+bi) ; Where a and b are real numbers.
 Number system
 A number system defines how a number can be represented
using distinct symbols.
 A number can be represented differently in different systems.
 For example, the two numbers (2A)16 and (52)8 both refer to the
same quantity, (42)10, but their representations are different.

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 Common Number Systems
Number system can be categorized as
Decimal number system

Binary number system

Octal number system

Hexadecimal Number System

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 Common Number Systems
 Each number system is associated with a base or radix
The decimal number system is said to be of base or radix 10
 A number in base r contains r digits 0,1,2,...,r-1
Decimal (Base 10): 0,1,2,3,4,5,6,7,8,9

Used by Used in
System Base Symbols humans? computers?
Decimal 10 0, 1, … 9 Yes No
Binary 2 0, 1 No Yes
Octal 8 0, 1, … 7 No No
Hexa- 16 0, 1, … 9, No No
decimal A, B, … F
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 The decimal system (base 10)
 The word decimal is derived from the Latin root decem (ten).
In this system the base b = 10 and we use ten symbols.
S = {0, 1, 2, 3, 4, 5, 6, 7, 8, 9}.

Binary system (base 2)

 The word binary is derived from the Latin root bini (or two
by two).
 In this system the base b = 2 and we use only two symbols,
S = {0, 1}
 The symbols in this system are often referred to as binary
digits or bits.

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 The hexadecimal system (base 16)
 The word hexadecimal is derived from the Greek root hex
(six) and the Latin root decem (ten).
 In this system the base b = 16 and we use sixteen symbols
to represent a number.
 The set of symbols is
S = {0, 1, 2, 3, 4, 5, 6, 7, 8, 9, A, B, C, D, E, F}
 The symbols A, B, C, D, E, F are equivalent to 10, 11, 12,
13, 14, and 15 respectively.
 The symbols in this system are often referred to as
hexadecimal digits.

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 The octal system (base 8)
 The word octal is derived from the Latin root octo (eight).
 In this system the base b = 8 and we use eight symbols to
represent a number.
 The set of symbols is:
S = {0, 1, 2, 3, 4, 5, 6, 7}

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 Thank you
for your attention
Debashis Saha, Lecturer, 29
Jahangirnagar University