Business Mathematics, Fourteenth Edition
By Gary Clendenen and Stanley A. Salzman
Contents
Preface vi
The Business Mathematics, 14th Edition, Learning
System vii
Learning Tips for Students xiv
Business Mathematics Pretest xv
Index of Applications xvi
Chapter 1
Whole Numbers and Decimals 1
1.1 Whole Numbers 2
1.2 Application Problems 14
1.3 Decimal Numbers 20
1.4 Addition and Subtraction of Decimals 24
1.5 Multiplication and Division of Decimals 28
Chapter 1 Quick Review 35
Chapter Terms 35
Case Study: Cost of Getting Married 37
Case in Point Summary Exercise: Subway 38
Chapter 1 Test 39
Chapter 2
Fractions 41
2.1 Fractions 42
2.2 Addition and Subtraction of Fractions 48
2.3 Addition and Subtraction of Mixed Numbers 56
2.4 Multiplication and Division of Fractions 60
2.5 Converting Decimals to Fractions and Fractions to Decimals 68
Chapter 2 Quick Review 72
Chapter Terms 72
Case Study: Operating Expenses at Woodline Moldings and Trim 74
Case in Point Summary Exercise: The Home Depot 75
Chapter 2 Test 76
Chapter 3
Percents 79
3.1 Writing Decimals and Fractions as Percents 80
3.2 Finding Part 87
3.3 Finding Base 94
Supplementary Application Exercises on Base and Part 98
3.4 Finding Rate 100
Supplementary Application Exercises on Base, Rate, and Part 104
3.5 Increase and Decrease Problems 108
Chapter 3 Quick Review 115
Chapter Terms 115
Case Study: Self Employed Retirement Plan 117
Case in Point Summary Exercise: Century 21 118
Chapter 3 Test 119
Chapter 4
Equations and Formulas 121
4.1 Solving Equations 122
4.2 Applications of Equations 130
4.3 Business Formulas 139
4.4 Ratio and Proportion 148
Chapter 4 Quick Review 157
Chapter Terms 157
Case Study: Forecasting Sales at Alcorn’s Boutique 159
Case in Point Summary Exercise: General Motors 160
Chapter 4 Test 162
Chapters 1–4 Cumulative Review 166
Chapter 5
Bank Services 171
5.1 Banking, Checking Accounts, and Check Registers 172
5.2 Checking Services and Credit-Card
Transactions 182
5.3 Bank Statement Reconciliation 188
Chapter 5 Quick Review 197
Chapter Terms 197
Case Study: Banking Activities of a Retailer 199
Case in Point Summary Exercise: Jackson & Perkins 200
Chapter 5 Test 202
Chapter 6
Payroll 204
6.1 Gross Earnings: Wages and Salaries 205
6.2 Gross Earnings: Piecework and Commissions 214
6.3 Social Security, Medicare, and Other Taxes 222
6.4 Income Tax Withholding 228
Chapter 6 Quick Review 239
Chapter Terms 239
Case Study: Payroll: Finding Your Take-Home Pay 242
Case in Point Summary Exercise: Payroll
at Starbucks 243
Chapter 6 Test 244
Chapter 7
Mathematics of Buying 246
7.1 Invoices and Trade Discounts 247
7.2 Series Discounts and Single Discount
Equivalents 257
7.3 Cash Discounts: Ordinary Dating Methods 261
7.4 Cash Discounts: Other Dating Methods 267
Chapter 7 Quick Review 274
Chapter Terms 274
Case Study: George Foreman 276
Case in Point Summary Exercise: Discounts at Bed Bath & Beyond 277
Chapter 7 Test 278
Chapter 8
Mathematics of Selling 280
8.1 Markup on Cost 281
8.2 Markup on Selling Price 288
Supplementary Application Exercises on
Markup 296
8.3 Markdown 298
8.4 Turnover and Valuation of Inventory 304
Chapter 8 Quick Review 313
Chapter Terms 313
Case Study: Markdown: Reducing Prices to Move
Merchandise 317
Case in Point Summary Exercise: Recreational Equipment
Inc. (REI) 318
Chapter 8 Test 319
Chapters 5–8 Cumulative Review 321
Chapter 9
Simple Interest 323
9.1 Basics of Simple Interest 324
9.2 Finding Principal, Rate, and Time 335
9.3 Simple Discount Notes 343
9.4 Discounting a Note Before Maturity 352
Supplementary Application Exercises on Simple Interest and
Simple Discount 360
Chapter 9 Quick Review 364
Chapter Terms 364
Case Study: Banking in a Global World: How Do Large
Banks Make Money? 368
Case in Point Summary Exercise: Apple, Inc. 369
Chapter 9 Test 370
Chapter 10
Compound Interest and Inflation 372
10.1 Compound Interest 373
10.2 Interest-Bearing Bank Accounts and
Inflation 384
10.3 Present Value and Future Value 394
Chapter 10 Quick Review 399
Chapter Terms 399
Case Study: Valuing a Chain of McDonald’s
Restaurants 401
Case in Point Summary Exercise: Bank of America 402
Chapter 10 Test 403
Chapters 9–10 Cumulative Review 405
Chapter 11
Annuities, Stocks, and Bonds 407
11.1 Annuities and Retirement Accounts 408
11.2 Present Value of an Ordinary Annuity 416
11.3 Sinking Funds (Finding Annuity Payments) 424
Supplementary Application Exercises on Annuities
and Sinking Funds 431
11.4 Stocks and Mutual Funds 433
11.5 Bonds 443
Chapter 11 Quick Review 449
Chapter Terms 449
Case Study: Financial Planning 452
Case in Point Summary Exercise 453
Chapter 11 Test 454
Chapter 12
Business and Consumer Loans 456
12.1 Open-End Credit and Charge Cards 457
12.2 Installment Loans 467
12.3 Early Payoffs of Loans 475
12.4 Personal Property Loans 482
12.5 Real Estate Loans 490
Chapter 12 Quick Review 497
Chapter Terms 497
Case Study: Consolidating Loans 501
Case in Point Summary Exercise: Underwater on a
Home 503
Chapter 12 Test 505
Chapters 11–12 Cumulative Review 507
Chapter 13
Taxes and Insurance 510
13.1 Property Tax 511
13.2 Personal Income Tax 518
13.3 Fire Insurance 532
13.4 Motor-Vehicle Insurance 541
13.5 Life Insurance 549
Chapter 13 Quick Review 556
Chapter Terms 556
Case Study: Financial Planning for Property Taxes and
Insurance 559
Case in Point Summary Exercise: Mattel Inc.—Taxes and
Insurance 560
Chapter 13 Test 562
Chapter 14
Depreciation 564
14.1 Straight-Line Method 565
14.2 Declining-Balance Method 573
14.3 Sum-of-the-Years’-Digits Method 580
Supplementary Application Exercises on Depreciation 587
14.4 Units-of-Production Method 591
14.5 Modified Accelerated Cost Recovery System 596
Chapter 14 Quick Review 604
Chapter Terms 604
Case Study: Comparing Depreciation Methods 606
Case in Point Summary Exercise: Ford
Motor Company 607
Chapter 14 Test 608
Chapter 15
Financial Statements and Ratios 610
15.1 The Income Statement 611
15.2 Analyzing the Income Statement 616
15.3 The Balance Sheet 623
15.4 Analyzing the Balance Sheet 627
Chapter 15 Quick Review 635
Chapter Terms 635
Case Study: Bicycle Shop 638
Case in Point Summary Exercise: Apple, Inc. 640
Chapter 15 Test 642
Chapter 16
Budgeting and Business Statistics 644
16.1 Planning and Budgeting 645
16.2 Frequency Distributions and Graphs 654
16.3 Mean, Median, and Mode 666
Chapter 16 Quick Review 674
Chapter Terms 674
Case Study: Watching a Small Business Grow 677
Case in Point Summary Exercise: Bobby Flay 678
Chapter 16 Test 679
Appendix A
The Metric System A-1
Appendix B
Basic Calculators B-1
Appendix C
Financial Calculators C-1
Appendix D
Exponents and the Order of
Operations D-1
Appendix E
Graphing Equations E-1
Answers to Selected Exercises AN-1
Glossary G-1
Index I-1
Photo Credits P-1