Business Math Reviewer

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BUSINESS MATH SEMESTER REVIEW

I. BANKING
1. In a check with the correspondent stub, students should know how to: * Record transactions.
* Determine who is the payee, the drawee, the drawer, the banks identification number, the account number, write checks, calculate balances, etc. 2. With a list of transactions, all dated and numbered, students are requested to prepare a Bank Reconciliation.

II. PERCENTS, DECIMALS AND FRACTIONS

1. Students should be prepared to make conversions as follows: Decimals to percents, Percents to decimals, Fractions to percents, Percents to fractions 2. Calculate rate of percents of increases and decreases.

Examples for conversions:
1. Convert the following decimals to percents
. 0.75; 9.00; 6.006
2. Convert the following percents to decimals:
. 18%; 45⅞%; 119%
3. Convert the following fractions to percents:
. ⅞ %; [pic]%; [pic]%
3. Convert the following percents to fractions and reduce to lowest terms: . 6%; 31[pic]%; 182%

Sample Problems:
1. Colegio Menor has 600 male students. This is 60% of the total student body. How many students attend Colegio Menor? 2. The price of TI calculators dropped from $29.95 to $ 16.99. What was the percent decrease in price?

III. TRADE DISCOUNTS AND CASH DISCOUNTS

Students should know how to:
• Calculate single and trade discounts with formulas and complements. • Find List Price when net price and trade discount rate are known. • Calculate chain discounts with the net price equivalent and single equivalent discount rate. • Explain the freight terms FOB and their effect on cash discounts. • Understand the use of credit periods.

• Calculate outstanding balance for partial payments.

Exercises as Tables:
Net Price Single Equivalent Equivalent rate(in discount rate List Chain Item Price Discount decimals) (in decimals) Price Discount TV $250 9/4 __________ ____________ _________ ________

Some other sample exercises are:
1. El CARAMELO Store has the opportunity to purchase candy from 3 different wholesalers; each different wholesaler offers a different chain discount. Co. A offers 25/5/5; Co. B offers 20/10/5, and Co. C offers 15/20. Which company should El CARAMELO deal with? 2. On March 30, Century TV. Received an invoice dated March 28 from ACME Manufacturing for 50 televisions at a cost of $125 each. Century received a 10/4/2 chain discount. Shipping terms are FOB shipping point. ACME prepaid the $70 freight. Terms are 2/10 EOM. When century received the goods, 3 sets were defective. Century returned these sets to ACME . On April 8, Century sent a $150 partial payment. Century will pay the balance on May 6. What is the Century’s final payment on May 6? Assume no taxes.

IV. SIMPLE INTEREST

Calculate simple interest and maturity value for days, months and years. Use the exact time, exact interest and the exact time, ordinary interest methods to calculate maturity value and simple interest. Use the U.S. rule and complete the proper interest credits under the U.S.

Exercises as Tables:
Interest Simple Maturity Principal rate Time interest Value $4,000 4 % 14 mos. _________ __________ $6,000 7% 1¼ yrs. _________ __________

Sample Problems:
1. Max borrowed $2,000 on a 10%, 120 day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid...
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