Business Math 5.1

Front

What is Business Math?

Back

Business Math refers to the application of mathematical concepts and techniques to solve problems related to business operations, finance, and economics.

Front

Define 'Interest'.

Back

Interest is the cost of borrowing money or the return on investment, usually expressed as a percentage of the principal amount.

Front

What is the formula for calculating Simple Interest?

Back

Simple Interest = Principal × Rate × Time.

Front

Explain 'Compound Interest'.

Back

Compound Interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

What is the formula for Compound Interest?

Back

Compound Interest = Principal × (1 + Rate/Number of Compounding Periods)^(Number of Compounding Periods × Time) - Principal.

Front

Define 'Discount'.

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

What is the formula for calculating a Discount?

Back

Discount = Original Price × Discount Rate.

Front

Explain 'Markup'.

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

Front

What is the formula for calculating Markup?

Back

Markup = Cost Price × Markup Rate.

Front

Define 'Break-even Point'.

Back

The Break-even Point is the level of sales at which total revenues equal total costs, resulting in neither profit nor loss.