# Contemporary Business Mathematics with Canadian Applications, Twelfth Edition PDF by S. A. Hummelbrunner, Kelly Halliday, and Ali R. Hassanlou

By S. A. Hummelbrunner, Kelly Halliday, and Ali R. Hassanlou

Contents:

Preface … xi

Student’s Reference Guide to Rounding and Special Notations … xix

Part 0 Mathematics Fundamentals and Business Applications … 2

1 Review of Arithmetic … 4

1.1 Basics of Arithmetic . . . 5

1.2 Fractions … 7

1.3 Percent . . . 13

1.4 Applications-Averages .. . 17

1.5 Applications-Payroll … 24

1.6 Applications-Taxes … 32

Review Exercise … 38

Self-Test .. . 40

Challenge Problems . . . 41

Case Study Businesses and the GST / HST … 42

Glossary .. . 43

2 Review of Basic Algebra … 45

2.1 Simplification of Algebraic Expressions … 46

2.2 Integral Exponents . . . 53

2.3 Fractional Exponents .. . 61

2.4 Logarithms-Basic Aspects … 64

2.5 Solving Basic Equations … 72

2.6 Solving Equations Involving Algebraic Simplification . . . 77

2.7 Solving Word Problems .. . 82

Review Exercise … 88

Self-Test .. . 9 0

Challenge Problems … 91

Case Study Investing in a Tax-Free Savings Account . .. 92

Swrnnary of Formulas … 92

Glossary .. . 94

3 Ratio, Proportion, and Percent … 95

3.1 Ratios . . . 96

3.2 Proportions . . . 101

3.3 The Basic Percentage Problem . . . 107

3.4 Problems Involving Increase or Decrease … 115

3.5 Problems Involving Percent .. . 120

3.6 Applications–Currency Conversions … 127

3.7 Applications-Index Numbers . .. 131

3.8 Applications-Personal Income Taxes .. . 134

Review Exercise . . . 136

Self-Test . . . 138

Challenge Problems . . . 13 9

Case Study The Business of Taxes … 140

Summary of Formulas … 14 1

Glossary … 141

4 Linear Systems … 142

4.1 Graphing Linear Equations . . . 143

4.2 Graphing Linear Systems of Equations in Two Variables … 155

CONTENTS VII

4.3 Algebraic Solution of Systems of Linear Equations in Two Variables .. . 159

4.4 Problem Solving … 167

4.5 Graphing Inequalities .. . 172

4.6 Problem Solving … 178

Review Exercise . . . 180

Self-Test . . . 181

Challenge Problems . . . 181

Case Study Determining the Right Combination … 182

Summary of Formulas . .. 183

Glossary . . . 183

Part 1 Comprehensive Case … 184

Part • Mathematics of Business and Management … 188

5 Cost-Volume-Profit Analysis and Break-Even … 190

5.1 Cost-Volume-Profit Analysis and Break-Even Charts … 191

5.2 Contribution Margin and Contribution Rate . .. 206

5.3 Effects of Changes to Cost-Volume-Profit .. . 210

R eview Exercise . . . 2 15

Self-Test . . . 216

Challenge Problems … 2 1 7

Case Study Segway Tours . . . 2 1 7

Summary of Formulas . .. 218

Glossary … 2 19

6 Trade Discounts, Cash Discounts, Markup, and Markdown … 220

6.1 Determining Cost with Trade Discounts … 222

6.2 Payment Terms and Cash Discounts .. . 230

6.3 Markup .. . 238

6.4 Markdown . .. 246

6.5 Integrated Problems … 252

Review Exercise … 260

Self-Test . .. 262

Challenge Problems . .. 263

Case Study Focusing on Prices . . . 263

Summary of Formulas … 264

Glossary .. . 265

7 Simple Interest … 267

7 .1 Calculating the Amount of Simple Interest .. . 268

7.2 Calculating the Principal, Rate, or Time . . . 274

7.3 Computing Future Value (Maturity Value) . . . 279

7.4 Calculating the Principal (Present Value) … 283

7.5 Computing Equivalent Values . . . 285

R eview Exercise … 297

Self-Test . . . 298

Challenge Problems . . . 298

Case Study Cost of Financing: Pay Now or Pay Later … 299

Summary of Formulas … 300

Glossary .. . 300

8 Simple Interest Applications … 301

8.1 Promissory Notes … 302

8.2 Treasury Bills and Commercial Paper .. . 309

8.3 Demand Loans … 312

8.4 Lines of Credit and Simple Interest Loans … 315

8.5 Loan Repayment Schedules … 319

Review Exercise … 325

Self-Test . . . 326

Challenge Problems .. . 327

Case Study Debt Consolidation . .. 327

Swmnary of Formulas .. . 328

Glossary … 329

Part 2 Comprehensive Case . . . 330

Part • Mathematics of Finance and Investment … 333

9 Compound Interest-Future Value and Present Value . .. 336

9.1 Basic Concepts and Calculations … 337

9.2 Using the Future Value Formula of a Compound Amount

FV = PV ( 1 + i) II ••• 344

9.3 Present Value and Compound Discount … 356

9.4 Application-Discounting Negotiable Financial Instruments

at Compound Interest . . . 362

9.5 Equivalent Values .. . 369

Review Exercise … 384

Self-Test … 385

Challenge Problems … 386

Case Study Planning Ahead … 387

Sununary of Formulas … 388

Glossary .. . 388

10 Compound Interest-Further Topics … 389

10.1 Determining n and Related Problems . . . 390

10.2 Calculating i and Related Problems … 398

10.3 Effective and Equivalent Interest Rates . . . 402

Review Exercise … 413

Self-Test … 414

Challenge Problems … 414

Case Study Comparing Car Loans … 415

Summary of Formulas … 415

Glossary … 4 16

11 Ordinary Simple Annuities … 417

11.1 Introduction to Annuities … 418

11.2 Ordinary Simple Annuity-Calculating Future Value FV .. . 421

11.3 Ordinary Simple Annuity-Calculating Present Value PV .. . 431

CONTENTS IX

11.4 Ordinary Simple Annuities-Determining the Periodic Payment PMT .. . 442

11.5 Determining the Term n of an Annuity . .. 448

11.6 Calculating the Periodic Rate oflnterest i Using Preprogrammed Financial

Calculators .. . 455

Review Exercise … 457

Self-Test .. . 458

Challenge Problems . .. 458

Case Study Getting the Picture … 459

Sununary of Formulas … 460

Glossary … 461

12 Ordinary General Annuities … 462

12.1 Ordinary General Annuities-Calculating the Future Value FV . .. 463

12.2 Ordinary General Annuities-Calculating the Present Value PV . . . 471

12.3 Ordinary General Annuities-Determining the Periodic Payment PMT . .. 473

12.4 Ordinary General Annuities-Determining the Term n … 476

12.5 Ordinary General Annuities-Calculating the Periodic Interest Rate i … 480

12.6 Constant-Growth Annuities … 482

Review Exercise .. . 488

Self-Test . .. 489

Challenge Problems . .. 490

Case Study Vehicle Cash-Back Incentives … 490

Summary of Formulas . .. 491

Glossary . . . 492

13 Annuities Due, Deferred Annuities, and Perpetuit ies … 493

13.1 Simple Annuities Due .. . 494

13.2 General Annuities Due .. . 508

13.3 Ordinary Deferred Annuities … 516

13.4 Deferred Annuities Due .. . 525

13.5 Perpetuities .. . 533

Review Exercise … 541

Self-Test . . . 543

Challenge Problems … 545

Case Study Planning for University … 54 5

Summary of Formulas … 546

Glossary . . . 54 7

14 Amortization of Loans, Including Residential Mortgages … 548

14.1 Amortization Involving Simple Annuities … 549

14.2 Amortization Involving General Annuities . .. 569

14.3 Determining the Size of the Final Payment . .. 576

14.4 R esidential Mortgages in Canada . . . 584

R eview Exercise … 596

Self-Test … 598

Challenge Problems .. . 599

Case Study Managing a Mortgage .. . 599

Summary of Formulas . . . 600

Glossary … 600

15 Bond Valuation and Sinking Funds … 602

15.1 Purchase Price of Bonds .. . 603

15.2 Purchase Price of a Bond When Market R ate Does Not

Equal Bond R ate … 604

15.3 Bond Schedules … 621

15.4 Determining the Yield R ate … 627

15.5 Sinking Funds . .. 629

R eview Exercise … 643

Self-Test .. . 646

Challenge Problems … 64 7

Case Study R aising Capital Through Bonds . . . 64 7

Summary of Formulas … 648

Glossary .. . 649

16 Investment Decision Applications … 650

16.1 Discounted Cash Flow … 651

16.2 Net Present Value . .. 659

16.3 R ate of Return on Investment .. . 671

R eview Exercise … 683

Self-Test .. . 684

Challenge Problems … 685

Case Study To Lease or Not to Lease? … 686

Sununary of Formulas .. . 686

Glossary … 687

Part 3 Comprehensive Case … 688

Appendix I:

Appendix II:

Further R eview of Basic Algebra . . . 691

Instructions and Tips for Three Preprogrammed

Financial Calculator Models . .. 704

Answers to Odd-Numbered Problems, R eview Exercises, and Self-Tests .. . 717

Index .. . 734

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