[...]... to make mathematics relevant and understandable to students While I wish I could sit beside you as you work through this content, I have done my best to explain the topics in everyday language and to show shortcuts and tips that will help you understand the process and perform the mathematics more quickly and easily Master Math: Business and Personal Finance Math is designed as a reference and resource... used by a student taking a business math or personal finance course who wants another resource to supplement a textbook It might be used to refresh skills that have gotten rusty or to learn new skills to assist a person in managing personal finances or working in the business world xiii xiv Master Math: Business and Personal Finance Math The book begins with a review of basic math skills that will be... 5 9 10 Master Math: Business and Personal Finance Math 1.2 Decimals In a decimal number, each digit has a place value that is ten times the value of the digit to the right The place value names are shown in Figure 1.1 Figure 1.1 Place values The number shown in Figure 1.1 is read four hundred and eighty-two thousand, seven hundred sixty-one and five thousand three hundred ninety-four ten thousandths... topics that impact both personal finance and business, including • Calculating paychecks and taxes • Maintaining bank accounts, investments, and insurance • Managing credit • Making major purchases • Creating and managing a budget The remainder of the book focuses on topics that are specific to a business, such as • Managing costs, sales, and marketing • Creating and analyzing business statements Depending... who can do math and those who can’t I respectfully disagree While there are certainly people who have a talent or a gift for mathematics, all people are capable of learning and applying mathematics In our society, avoiding mathematics is not only a difficult task, but a risky one Paychecks, taxes, a checking account, credit cards, and loans are an everyday part of the personal finance and business world... means 25 out of 100, or 25 or 0.25 100 Percents are commonly used in business and personal finance For example, sales tax may be 5% of the purchase price, or an account may earn 2% interest Being able to change between fractions, decimals, and percent is an important part of mastering business and finance mathematics Fractions, Decimals, and Percents To change a percent to a decimal, you can use the definition...x 7.4 7.5 7.6 7.7 Master Math: Business and Personal Finance Math Buying a Car Depreciation Leasing a Car Auto Insurance 123 125 127 130 Chapter 8: Insurance and Investments 8.1 Life Insurance Life Insurance Cash Value 8.2 Health Insurance Health Insurance Benefits and Costs 8.3 Disability Insurance 8.4 Bonds Bond Interest Current Yield Cost of Buying and Selling Bonds 8.5 Stocks Stock... for the variables and simplify P ϭ $5,000, R ϭ 8% ϭ 0.08, T ϭ 6, I is unknown IϭPϫRϫT I ϭ $5,000 ϫ 0.08 ϫ 6 I ϭ $2,400 The interest earned is $2,400 PRACTICE PROBLEMS 1.32 Find G if G ϭ H ϫ R and H ϭ 45 and R ϭ $10.25 1.33 Find I if I ϭ P ϫ R ϫ T and P ϭ $2,500, R ϭ 2% and T ϭ 3 years Math Review 21 Exponents Some formulas used in business and finance utilize exponents An exponent is a mathematical notation... nothing is to be at the mercy of others and our own uninformed decisions The most common question posed to a math teacher is, “When am I ever going to have to use this?” You will not have to ask that question when working through this book because its content is required to understand, and make good decisions about, personal finance and business This is the math you can’t afford to miss out on! It... To add or subtract decimals, write the digits so the place values and the decimal point line up You can write placeholder 0s in the place values to the right of the decimal point to assist in lining up the place values 12 Master Math: Business and Personal Finance Math Example: Find the sum 6.38 ϩ 2.5 ϩ 0.38 Solution: Write 6.38, 2.5, and 0.38 so that the decimal points are aligned Add a placeholder . that will help you understand the process and perform the mathematics more quickly and easily. Master Math: Business and Personal Finance Math is designed as a reference and resource tool. It might. Expenses 160 9.2 Creating and Adjusting a Budget 161 9.3 Best Buys 167 9.4 Optional Personal Expenses 168 Master Math: Business and Personal Finance Math x Chapter 10: Business Costs 10.1 Payroll. understand, and make good decisions about, personal finance and business. This is the math you can’t afford to miss out on! It has always been my goal as a teacher to make mathematics relevant and