Learning Outcomes

Upon successful completion, the student will be able to:

• Identify the problem (e.g., to choose the most economical equipment).
• Formulate the problem elements into mathematical relationships and models.
• Use appropriate technology to assist in problem solving.
• Manipulate the relationship and models to provide a solution to the problem.
• Approximate the solution.
• Validate the solution.
• Apply concepts of proportion and percent to business areas such as markup, discounts, budget allocation.
• Utilize standard functions and graphical techniques to analyze relationships between quantities such as cost, revenue, production volume and profit.
• Apply the concept of the time value of money.
• Calculate interest, present and future values using simple interest.
• Calculate interest, present and future values using compound interest.
• Analyze interest rates by finding equivalent and effective rates.
• Calculate payments, present and future values for annuities in budgeting and asset evaluation and for mortgages.
• Calculate and compare interest on various forms of debt or investments.
• Create and use amortization tables for various debt instruments.
• Evaluate investment decisions using methods of payback and discounted cash flow such as net present value and internal rate of return.

Effective as of Fall 2005