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BCO 101: Business Mathematics

Unit 1: Review of Arithmetic
Learning Objectives
Reno Palombi
1. Simplify arithmetic expressions using the basic order of operations.
2. Determine equivalent fractions and convert fractions to decimals.
3. Through problem solving, compute simple arithmetic and weighted averages.
4. Determine gross earnings for employees remunerated by the payment of
salaries, hourly wages, or commissions.
5. Through problem solving, compute GST, HST, PST, sales taxes, and property
taxes.

BCO101: Business Mathematics

Eleventh Canadian Edition

Unit 1 corresponds to Chapter 1 of the course
text.

Chapter 1
Review of Arithmetic

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Lesson 1.1: Basics of Arithmetic

Being able to perform arithmetic calculations is important in business operations.

The use of arithmetic expressions, fractions, and percents is common in today’s
business environment.

The basics of fraction, decimal, and percent conversions are vital skills for dealing
with situations you face, not only as a small-business owner but also as a consumer
and investor.

Although calculators and computers are common tools for solving business problems,
it is still important to understand mathematical concepts and processes that are the
foundation of many business principles.

Evaluating Arithmetic Expressions

When asked to evaluate 3 + 5 − 4 × 2, three students came up with the following
solutions :

: : :
3 +5−4×2 3 +5−4×2 3 +5−4×2
=9+5−4×2 = 9+5−4×2 =9+5−4×2
= 14 − 4 × 2 = 9+5−8 =9+1×2
= 10 × 2 = 14 − 8 =9+2
= 20 =6 = 11

a) How many correct solutions do you think there are for this question? _____
b) Did each student execute the operations correctly? _________
c) What differed in each solution to produce a different answer?
_________________________________________
WN - 4

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Order Of Operations

B E D M A S

Brackets Exponents Division Multiplication Addition Subtraction

1. Perform all operations inside a bracket first (the operations inside the bracket must
be performed in the proper order).
2. Perform exponents.
3. Perform multiplication and division in the order as they appear from the left to right.
4. Perform addition and subtraction in order as they appear from left to right.

Using BEDMAS

Example 1: Evaluate 3 + 5 − 4 × 2 using BEDMAS.

No Brackets Present
Solution:
3 +5−4×2 = 9 + 5 − 4×2 Exponents First

= 9+5−8 Multiply Second

= 14 − 8 Addition Next
=6 Subtraction Last

Note:
Student 2 followed the correct order of operations and therefore 6 was the correct answer.

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Parentheses and Order of Operations

Example 2: Evaluate 24 ÷ (4 – 2) × 3 .

Demonstrated 24 ÷ (4 – 2) × 3 =
Solution:
=

=
Answer: 36
WN - 7

Expressions with Exponents and Brackets

Example 3: Evaluate the expression 4 + (42 – 26÷2)4 – 3×5.
Answer: 70
Demonstrated Solution:
BEDMAS
4 + (42 – 26÷2)4 – 3×5 =

WN - 8

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Check Your Understanding

Evaluate the expression 30 + 2(42 – 6 × 2 – 12)4 – 7.

Your Solution:

Answer: 185
WN - 9

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Nested Parentheses (Brackets)

Example 4: Evaluate: 18 ÷ [6 + 3(5 − 4)] × 2

Demonstrated Solution:

18 ÷ [6 + 3(5 − 4)] × 2 =

Answer: 4

10

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Check Your Understanding

Evaluate: 50 − [2(6 − 3)2 + 4] × 2 =

Your Solution: Answer: 6

50 − [2(6 − 3)2 + 4] × 2 =

11

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Expressions Involving Integers

Example 5: Evaluate (6×2 − 4)/(2 − 6)

Answer: −2
Demonstrated Solution:

(6×2 − 4)/(2 − 6) =

12

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Deepen Your Understanding

Evaluate: −128 ÷ (2 × 4)2 − 3

Answer: −5
Your Solution:

−128 ÷ (2 × 4)2 − 3 =

13

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Operations with Decimals

Example 6: Evaluate 3.2 × 2 − 4.5 ÷ 5

In-Class Solution:

3.2 × 2 − 4.5 ÷ 5 =

Answer: 5.5

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Practice and Problem Solving

In the text-book, Page 6

Exercise 1.1 Odd numbered questions

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