WELCOME

TO….

BUSINESS MATHEMATICS
&
APPLICATIONS

DEBASHIS SAHA
ASSISTANT PROFESSOR,
DEPARTMENT OF FINANCE & BANKING
JAHANGIRNAGAR UNIVERSITY
TEXT AND RESOURCES
– Business mathematics, 11th Edition, V. K. Kapoor , D. C.
Sancheti, Sultan Chand & Sons
– Business mathematics , 1st Edition Kashyap Trivedi &
Chirag Trivedi, Pearson India

Reference Book
– Business Mathematics and Statistics,1st Edition,
N G Das , Dr. J K Das, Mcgraw Hill Education
– Fundamentals of Business Mathematics,2012-13,
CIMA, Elsevier
EXAMS

• Mid Term- (Multiple choice questions 6%

• Written Exam 9%)
• Sometimes short analysis questions
• Tests can include anything assigned for reading or
discussed in class
Weeks Class Chapter Topics

Basic Concepts Concepts of number system, fractions,

1. exponents, equations, factoring,
polynomials, ordered pairs, relations,
functions, types of functions.
Set Theory: Sets, set notation, operations with sets,
laws of set operations, Venn diagrams,
2. application of set theory.

Logarithms: Rules for logarithms, common

logarithms, calculation of logarithm of
3. a number, natural logarithm.

Equation system Solution of equations, simultaneous

4. equation system, solution of
simultaneous equation systems with
specific applications to business
problems, inequalities
 Exponents And Surds Rational exponents and surds
5. Solving surd equations
Applications of exponentials

Class Test 01

Cartesian co-ordinate system, distance

6. Geometry between two points, straight
line-slopes-intercepts, equation of a line,
application of linear equations
Explanation of the concepts of limits and
7,8 Differential Calculus continuity, derivative and differentiation,
rules of differentiation, higher order
differentiation, chain order differentiation,
exponential and logarithmic differentiation,
partial differentiation, optimization, rate of
growth and decays, business applications.
 Meaning of integration, rules of
integration, indefinite integral, definite
Integral Calculus integral, resource depletion, resource
8,9 accumulation, area between curves,
business applications of integration in
business decisions.
Class Test 02

Vectors, matrices, laws and operations,

Matrix Algebra transposes, inverses, adjoints, Cramer’s
10,11 rule, determinants, solution of system
of equations, application of matrix
algebra in business
Annuities, sinking fund, discount,
Mathematics of Finance simple and compound interest,
12,13 amortization, calculation of present
value and future value and future value
 Class Test 03
14
Mid Term 1 & 2

Class Review
15

.
LECTURE 01
 • Mathematics is the science of order, space,
quantity and relation. It is that science in
WHAT IS which unknown magnitudes and relations
MATHEMATICS? are derived from known or assumed ones
by use of operations defined or derived
from defined operations.
 • Mathematics is a science, like physics or
astronomy; it constitutes a body of established
facts, achieved by a reliable method, verified by
practice, and agreed on by a consensus of
qualified experts. But its subject matter is not
WHAT IS visible or ponderable, not empirical; its subject
MATHEMATICS? matter is ideas, concepts, which exist only in
the shared consciousness of human beings.
Thus it is both a science and a “humanity.” It is
about mental objects with reproducible
properties.
 Example:
• “the counting numbers 1, 2, 3, 4, in
arithmetic, are concepts which we can
WHAT IS communicate, and which, as we can verify,
keep their properties as they are
MATHEMATICS? communicated. These concepts are
reproducible, they possess a certain
rigidity, a reliability and consistency, and so
they permit conclusive, irresistible
reasoning—which is what we call “proof.”
 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
BUSINESS used in commerce includes elementary
MATHEMATICS 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.
 Business mathematics is essential to keep track
of an organization day to day operation.

To record daily transaction of business: An

IMPORTANCE OF organization uses business mathematics to keep
record of their daily transaction. How much
BUSINESS product they sold today? How much profit
MATHEMATICS: 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
IMPORTANCE OF business mathematics to
BUSINESS calculate their total cost
(TC), total revenue (TR)
MATHEMATICS: 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.
NUMBER
SYSTEM
NUMBER SYSTEM

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:
❑ Which can be written in the form of .

❑ 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
❑ Irrational numbers :
❑ The number can not be written in the form of .
❑ Pythagorean in Greece were first to discover irrational
number .
❑ √2, √3, π 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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 • 1–100 -> 25 numbers (2, 3, 5, 7, 11, 13, 17, 19, 23, 29, 31,
37, 41, 43, 47, 53, 59, 61, 67, 71, 73, 79, 83, 89, 97)
• 101–200 -> 21 numbers (101, 103, 107, 109, 113, 127,
131, 137, 139, 149, 151, 157, 163, 167, 173, 179, 181, 191,
193, 197, 199)
• 201–300 -> 16 numbers (211, 223, 227, 229, 233, 239,
241, 251, 257, 263, 269, 271, 277, 281, 283, 293)
• 301–400 -> 16 numbers (307, 311, 313, 317, 331, 337,
347, 349, 353, 359, 367, 373, 379, 383, 389, 397)
• 401–500 -> 17 numbers (401, 409, 419, 421, 431, 433,
439, 443, 449, 457, 461, 463, 467, 479, 487, 491, 499)
• 501–600 -> 14 numbers (503, 509, 521, 523, 541, 547,
PRIME NUMBER 557, 563, 569, 571, 577, 587, 593, 599)
• 601–700 -> 16 numbers (601, 607, 613, 617, 619, 631,
641, 643, 647, 653, 659, 661, 673, 677, 683, 691)
• 701–800 -> 14 numbers (701, 709, 719, 727, 733, 739,
743, 751, 757, 761, 769, 773, 787, 797)
• 801–900 -> 15 numbers (809, 811, 821, 823, 827, 829,
839, 853, 857, 859, 863, 877, 881, 883, 887)
• 901–1000 -> 14 numbers (907, 911, 919, 929, 937, 941,
947, 953, 967, 971, 977, 983, 991, 997)
• Total: 168
 THE REAL NUMBER SYSTEM
• Real Numbers

Rational Numbers Irrational Numbers

…any number that is
…-5, -4, -3, -2, -1, 0, 1, 2, 3, 4, 5 not rational
Natural Numbers Example:
π= 3.14159……
Whole Numbers e= 2.71828…..
Integers

Which can be written in the form of .

 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
COMPLEX expressions involving the square roots of
NUMBER 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.
 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