Introduction to business math problems :
Business mathematics is 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. The Main categories in business math are,
Money math
Paying taxes
Interest
Investing
Saving
Profit and loss and etc.,
In this article we will see few basic business math problems. I like to share this Simplifying Radical Expressions with you all through my article.
(Source: Wikipedia)
Example business math problems:
Business math problems Example 1:
A Computer Sales and services center sells pendrives for `$` 30 and laptops for `$` 2500 each. In June, total sales were `$` 10720. Customers bought 6 times as many pendrives as laptops. How many of each did the centre sell?
Solution:
Let L = number of laptops
Then 6L = number of pendrives.
Selling price of each laptops (L) = `$` 2500
So, `$` 2500L
Selling price of each pendrives (6L) = `$` 30
6L (`$` 30) = `$` 180
Together, they sold for: 2500L + 180L = 2680L dollars.
But we know that the total sales were `$` 10720
Hence,
2680L = 10720
L = `10720/2680`
l= 4, 6L = 6(4) = 24
Therefore, they sold: 4 laptops and 24 pendrives.
Business math problems Example 2:
An invoice dated July 15 for products Sara bought added up to `$` 750. The terms were 3/10, n/60, f.o.b. shipping point. When the goods arrived, she paid shipment amounting to `$` 5.50. On July 20 she returned goods billed at `$` 22, and received credit therefore. Sara paid the bill on July 24. Find the amount of her check?
Solution:
Sara paid shipment in cash.
The shipment bill is outside of the invoice of `$` 750.
She returned goods worth `$` 22, so
The balance payable = `$` 750 - `$` 22
= `$` 728
Sara paid on July 24 (within 10 days), so she gets a 3% discount ( as 3/10, n/60 shipping point)
Sara pay = 728 - (728* `3/100` )
= `$` 706.6
Additional example problems for business math :
Business math problems Example 3:
John purchased a car by obtaining a simple interest loan. The car costs `$` 120000, and the interest rate on the loan is 8%. If the loan is to be paid back in monthly installments over 2 years, what will be the,
1. The interest amount paid over the 2 years,
2. The total amount to be paid back,
3. The monthly payment amount.
Solution:
Given,
Principal = P= `$` 120000
Interest rate = R= 8% =` 8/100` = 0.08
Time = T = 2 years
By formula,
Simple interest = P*R*T
1. The interest amount paid over the 2 years,
I= 120000 * 0.08 * 2
= `$` 19200
2. The total amount to be paid back,
Total payment = Principal +interest
= `$` 120000 +`$` 19200
= `$ ` 139200
3. The monthly payment amount.
= Total payment / payment time in months
= `139200 / (2 * 12)` ( 1 year = 12 months)
= `$` 5800 per month
Business mathematics is mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis. The Main categories in business math are,
Money math
Paying taxes
Interest
Investing
Saving
Profit and loss and etc.,
In this article we will see few basic business math problems. I like to share this Simplifying Radical Expressions with you all through my article.
(Source: Wikipedia)
Example business math problems:
Business math problems Example 1:
A Computer Sales and services center sells pendrives for `$` 30 and laptops for `$` 2500 each. In June, total sales were `$` 10720. Customers bought 6 times as many pendrives as laptops. How many of each did the centre sell?
Solution:
Let L = number of laptops
Then 6L = number of pendrives.
Selling price of each laptops (L) = `$` 2500
So, `$` 2500L
Selling price of each pendrives (6L) = `$` 30
6L (`$` 30) = `$` 180
Together, they sold for: 2500L + 180L = 2680L dollars.
But we know that the total sales were `$` 10720
Hence,
2680L = 10720
L = `10720/2680`
l= 4, 6L = 6(4) = 24
Therefore, they sold: 4 laptops and 24 pendrives.
Business math problems Example 2:
An invoice dated July 15 for products Sara bought added up to `$` 750. The terms were 3/10, n/60, f.o.b. shipping point. When the goods arrived, she paid shipment amounting to `$` 5.50. On July 20 she returned goods billed at `$` 22, and received credit therefore. Sara paid the bill on July 24. Find the amount of her check?
Solution:
Sara paid shipment in cash.
The shipment bill is outside of the invoice of `$` 750.
She returned goods worth `$` 22, so
The balance payable = `$` 750 - `$` 22
= `$` 728
Sara paid on July 24 (within 10 days), so she gets a 3% discount ( as 3/10, n/60 shipping point)
Sara pay = 728 - (728* `3/100` )
= `$` 706.6
Additional example problems for business math :
Business math problems Example 3:
John purchased a car by obtaining a simple interest loan. The car costs `$` 120000, and the interest rate on the loan is 8%. If the loan is to be paid back in monthly installments over 2 years, what will be the,
1. The interest amount paid over the 2 years,
2. The total amount to be paid back,
3. The monthly payment amount.
Solution:
Given,
Principal = P= `$` 120000
Interest rate = R= 8% =` 8/100` = 0.08
Time = T = 2 years
By formula,
Simple interest = P*R*T
1. The interest amount paid over the 2 years,
I= 120000 * 0.08 * 2
= `$` 19200
2. The total amount to be paid back,
Total payment = Principal +interest
= `$` 120000 +`$` 19200
= `$ ` 139200
3. The monthly payment amount.
= Total payment / payment time in months
= `139200 / (2 * 12)` ( 1 year = 12 months)
= `$` 5800 per month
