Business Mathematics

Module Content || Prelim

Module 1

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Lesson 5: Exploring Trade Discount

Course Title Business Mathematics

Course Description This course will provide an understanding of the basic concepts of mathematics as
applied in business. It includes a review of the fundamental mathematics
operations using decimals, fractions, percent, ratio and proportion; mathematics
concepts and skills in buying and selling, computing gross and net earnings,
overtime and business data presentation, analysis, and interpretation. The use of
computer and software applications for computation and data presentation is
encouraged.
Course Learning Outcomes At the end of the course, students are expected to:

1. solve problems involving fractions, decimals, and percentage relating to

business;
2. formulate, solve, and use the concept of ratio and proportion in making
real-life decisions;
3. analyze and solve problems on important factors in managing a business,
buying, and selling products;
4. apply appropriate mathematical operation in salaries and wages; and

5. solve problems in real-life business situations, present data in graphical

form, and analyze them.
Evidence of Learning The teacher will facilitate the following assessment:

1. Formative Assessment

2. Short Quiz

3. Summative Assessment
4. Illustrative Works
5. Real-life Problem Solving
Topics (Coverage) I. Percentage, Ratio, and Decimal
II. Buying and Selling
III. Salaries and Wages
IV. Presentation and Analysis of Business Data
Target Participants

Learning Time:
Means for Learner Support Students may reach the teacher thru;
● Contact number: 09474949625
● Messenger account: Mark Angelo B. Marquida
● email: ma071795@gmail.com
Formative and An application activity and an assessment will be given every term to
Summative see how much you have learned from the lesson you have studied for.
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Assessment This will be checked by the teacher and will give you the result on the
next module provided.
(Performance/Product)

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INTRODUCTION

A pleasant day everyone!

I welcome you to our subject “Business Mathematics ” . Business math is the study of
mathematics required by the field of business. By the fact that you are reading this
module, I assume that you must be interested in a business field such as accounting,
marketing, human resources, or economics.

Timeline icon.
This part of the module indicates the activity timeline as guide for the students (instructions,
submissions dates and other announcements).

Rubrics icon.
This part of the module indicates how the student activities will be graded.

Some says that Math is dreadful, and with its integration to business make it even harder! Let me contradict this
notion and take you to a different perspective - notice that Mathematics surrounds us! From the moment you wake up
until you go to bed, you performed some math and solved a problem without realizing it! Perhaps you did some
calculations about the time you will spend on doing your household chores, your study, or the time you browse social
media. Maybe, you are helping your parents with budgeting your finances by buying things that you need or paying the
bills, and many more!

Regardless of the path you will take, you cannot avoid dealing with money and numbers. Both personally and in
your career, you certainly use elementary arithmetic such as addition, subtraction, multiplication, and division.

There is a whole field of mathematics that deals specifically with money and business. And that is the purpose of
this module. For you to learn how to
● solve and use the concept of ratio and proportion in making real-life decisions;
● analyze and solve problems on important factors in managing a business, buying and selling products;
● apply appropriate mathematical operation in salaries and wages;
● and solve problems in real-life business situations, present data in graphical form, and analyze them.
You must have wondered, “Why do I need to learn business mathematics?” The answer is simply this: money!
Admit it or not, money plays a crucial role in our life. We all work to earn money. We need money to purchase our
necessities, such as homes, transportation, food, and utilities. We also need money to enjoy the pleasures of life,
including vacations, entertainment, and hobbies. We need money to retire. And businesses need money to survive and

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prosper. To put it simply, this subject will teach you monetary concepts and how to make smart decisions with your
money!
Let us proceed and continue our journey in unraveling what is behind business mathematics!

TOPIC TITLE: Introduction: Fraction, Decimal, and Percentage

MODULE # 1
Module Learning Objectives:
At the end of this lesson, you should be able to:
1. recall the fundamentals of fractions to decimals and percent forms and vice
versa;
2. convert fraction, decimal, and percentage and vice versa; and
3. write the step-by-step process of the conversion of fraction, decimal, and
percentage.
LET'S GET STARTED!
The world of business is everywhere. In this lesson, you will learn about the basic mathematics needed to understand
business transactions; recall the fundamental operations on fractions, decimal, and percentage; and discuss how these
concepts and operations are applied in business.
Lesson 1. Revisiting fractions, Decimals, and Percent
To understand the characteristics, rules, and procedures for working
with fractions, you must be familiar with fraction terminology. First of
all, what is a fraction? A fraction is a part of a whole.

It is written in one of three formats:

Each of these formats means the same thing. The number on the top, side, or to the left of the line is known as the
numerator. The number on the bottom, side, or to the right of the line is known as the denominator. The slash or line in
the middle is the divisor line. In some books, that slash is also called “vinculum”

In the above example, the numerator is 1 and the denominator is 2. There are five different types of fractions, as you
have discussed in your previous years. To see if you could still recall, let us have this activity.

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Lesson 1.1 - Conversion of Fraction to Decimal and vice versa

Although fractions are common, many people have trouble interpreting them. For example, in comparing 27/37 to 57/73,
which is the larger number? The solution is not immediately apparent. Also, imagine a retail world where your local SM
store was having a 3/20 off sale! It’s not that easy to realize that this equates to 15% off. In other words, fractions are
converted into decimals by performing the division to make them easier to understand and compare.

The rules for converting fractions into decimals are based on the fraction types
1. Proper and Improper Fractions. Resolve the division. For example, 3/4 is the same as 3 ÷ 4 = 0.75.
As well, 5/4 = 5 ÷ 4 = 1.25
2. Mixed Fractions. The decimal number and the fraction are joined by a hidden addition symbol.
Therefore, to convert to a decimal you need to reinsert the addition symbol and apply PEMDAS: 3 4/5 = 3 +(4 ÷
5) = 3 + 0.8 = 3.8
3. Complex Fractions. The critical skill here is to reinsert all of the hidden symbols and then apply the
rules of PEMDAS:

1.1a Rounding off:

Pretty simple, right? We only have to divide the numerator by the denominator and add the whole number if it is a mixed
number, in converting fraction to decimal. However, If the division process does not come out evenly after two decimal
places, resulting in non-terminating decimals, we have to follow the rounding principle.
Business frequently deals with decimals. Even the smallest points in decimal numbers could mean a great value in
finances or in accounting. Let say for example;
Your parents would like to loan ₱ 70,000 to buy you a motor vehicle in a bank with 16.861% interest. The account officer
told you, for simplicity, she will round off the interest rate to 16.9%. Is it ok with you? It should not be! Let’s have a look
at this.
Price is 70,000
Interest rate: I = P x IR I = P x IR
16.861% and 16.9% I = 70000 x 16.861% I = 70000 x 16.861%
Interest =?
I = 11,802.7pesos I = 11, 830 pesos

This example illustrates the importance of rounding. This is a slightly tricky concept that confuses most students
to some degree. In business math, sometimes you should round your calculations off and sometimes you need to retain
all of the digits to maintain accuracy.
To round a number off, you always look at the number to the right of the digit being rounded. If that number is 5 or
higher, you add one to your digit; this is called rounding up. If that number is 4 or less, you leave your digit alone; this is
called rounding down. For instance;
a. Round off 8.345 to two decimal place –

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You need to examine the number in the third decimal place (the one to the right). It is a 5, so you add one to the second
digit and the number becomes 8.35.
b. Round 3.6543 to the third decimal place –
Therefore, you look at the fourth decimal position, which is a 3. As the rule says, you would leave the digit alone and the
number becomes 3.654.

1.1b Non Terminating Decimals

What happens when you perform a calculation and the decimal doesn't terminate?
You need to assess if there is a pattern in the decimals:
• The Non terminating Decimal without a Pattern:
For example, 6/17 = 0.352941176 ... with no apparent ending decimal and no pattern to the decimals. You try to answer
• The N on-Terminating Decimal with a Pattern:
For example, 2/11 = 0.18181818 ... endlessly. You can see that the numbers 1 and 8 repeats. A shorthand way of
expressing this is to place a horizontal line above the digits that repeat. Thus, you can rewrite 0.18181818 ... as 0.. You
try to answer.
Lesson 1.2 - Conversion of Decimal to Fraction
To change a decimal to a fraction, we only have to consider one thing. That is the place value of the digit that is
farthest to the right in the decimal. Then, expand the fraction with the denominator with determined place value.
Let us recall place value and study the following examples below!
Place Value Chart:

Examples:
a. Change 0.4 to fraction. b. Change 0.18 to fraction. c. Convert 0.240 into fraction.

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Step 1: Identify the place Step 1: Identify the place value Step 1: Identify the place
value of the decimal number. of the decimal number. value of the decimal number.
0.4 is on tenths, so we 0.18 is on hundredths, so we 0.240 is on thousandths, so
multiply it by 10/10 multiply it by 100/100 we multiply it by 1000/1000
0.4 x = 0.18 x = 0.240 x =
Step 2: Reduce your answer Step 2: Reduce your answer on Step 2: Reduce your answer
on the lowest term. the lowest term. on the lowest term.
= Thus, 0.4 = = =
Thus, 0.18 = Thus, 0.240 =

Pretty easy right? Now, that is not always the case. In some problems, we may encounter conversion of non-terminating
decimals. So this is how to deal with such.

Lesson 1.3 - Conversion of Decimal to Percentage

A percentage is a part of a whole expressed in hundredths. In other words, it is a value out of 100. For example,
93% means 93 out of 100, or 93/100.

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Assume you want to convert the decimal number 0.0875 into a percentage. This number represents the decimal
variable in the formula. Substitute into formula above % = 0.0875 × 100 = 8.75%

You can also solve this formula for the decimal number. To convert any percentage back into its decimal form,
you need to perform a mathematical opposite. Since a percentage is a result of multiplying by 100, the mathematical
opposite is achieved by dividing by 100. Therefore, to convert 81% back into decimal form, you take 81% ÷ 100 =
0.81.

Moving the Decimal:

Another easy way to work with percentages is to remember that multiplying or dividing by 100 moves the
decimal over two places.

1. If you are multiplying by 100, the decimal position moves two positions to the
right.

2. If you are dividing by 100, the decimal position moves two positions
to the left

Let us have examples!

Convert (a) and (b) into percentages. Convert (c) back into decimal format.

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a. 3/8 b. 1.3187 c. 12.399%

% = 3 ÷ 8 = 0.375 % = 1.3187 × 100 dec = 12.399% x 100 dec

= 0.12399
% = 0.375 × 100 % = 131.87%
% = 37.5%

TOPIC TITLE: Percentage Problem: Rate, Base, and Percentage

MODULE # 1

Module Learning Objectives:

At the end of this lesson, you should be able to:
1. identify the rate, base, and the percentage in a given problem;
2. provide situations concerning percentage problems; and
3. solve business related problem involving percentage.

LET'S GET STARTED!

In business, traders frequently encounter percentage problems, such as computing the interest when
investing money, finding the amount of discount when items are on sale, computing the amount of commission
on a business transaction, or the amount of tax to be paid, etc.
In this lesson, we will tackle more of this percentage problems. And to see if you are ready for this
lesson, lets us answer the following exercises.

There are three quantities involved in solving percentage problems – the base, rate, and the percentage. The rate is the
number usually expressed in percent or sometimes in fraction. The base is the number to which rate is applied. The
percentage is the number obtained by applying the rate to the base.
The following basic formula is used in solving percentage (P), base (B), or rate (R) problem. And in order to solve it,
you must know two of the three quantities to compute for the unknown quantity. Let’s get
through the following examples.
Lesson 2.1 – Finding the Percentage What is 45% of 780?
Solution: Step 1. Identify the given information and the unknown problem.
B = 780 R = 45% P=?
The base and the rate are given while percentage is unknown. Notice that the rate is given in percent. You have to
convert percent to decimal in when you substitute this in the formula.
Step 2. Identify which formula is to be used. Since Percentage is unknown, we will use P=BR.
Step 3. Substitute the given values into the formula.

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B = 780 R = 45% or 0.45 P=?
P= BR
P= (780) (0.45) = 351. Thus, 45% of 780 is 351.

Lesson 2.2 – Finding the Rate

• Twenty-seven is what percent of 36?
Solution: Step 1. Identify the given information and the unknown problem.
B = 36 P = 27 R = ?
Step 2. Identify the formula to be used. Since rate is unknown, R= P/B
Step 3. Substitute the given values in the formula and solve for the unknown.
B = 36 P = 27 R = ?
R= or or 0.75
R= 75% Thus, 27 is 75% of 36.
Lesson 2.3 – Finding the Base
• 5% of what number is 200
Solution:
Step 1. Identify the given information and the unknown problem.
B=? P = 200 R = 5%
Step 2. Identify the formula to be used. Since base is unknown,
B = P/R
Step 3. Substitute the given values in the formula and solve for the unknown.
B=? P = 200 R = 5% or 0.05
B = P/R
B = 4,000
Thus, 5% of 4,000 is 200
Lesson 2.4 – Solving Real Life Problems involving Percentage
Example 1. Forty-seven percent of the people in a town are adults. How many adults are there if there are 14,500
people?
Solution:
Step 1. Identify the given information and the unknown problem.
B = 14,500 P =? R = 47%
Step 2. Identify the formula to be used. Since percentage is unknown,
P = BR

Step 3. Substitute the given in the formula and solve for the unknown.

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B = 14,500 P =? R = 47% 0.47
P = BR
P = (14500) (0.47) or 6,815
Thus, there are 6,815 adults in town.

Example 2. If a woman saved ₱ 5,000 from her monthly income of ₱ 12,500, what percent of her income did she
save?
Solution:
Step 1. Identify the given information and the unknown problem.
B = 12,500 P =5000 R=?
Step 2. Identify the formula to be used. Since percentage is
unknown, R = P/B

Step 3. Substitute the given in the formula and solve for the unknown.
B = 12,500 P =5000 R=?
R = P/B
R= or 0.4
R = 40%ss, thus 40% of her income goes to her savings.

TOPIC TITLE: Ratio and Proportion

MODULE # 1

Module Learning Objectives:

At the end of this lesson, you should be able to:

a. define ratio and proportion;

b. determine if the given situations show proportion; and
c. solve for the unknown value in the proportion.

LET'S GET STARTED!

Ratio and proportion are concepts in mathematics which have varied application in daily life. In this business
world, ratio and proportion play a vital role, especially in understanding business transactions. In this chapter, you will
revisit ratio and proportion, learn how to solve the missing terms in a proportion, and apply these concepts in solving
real-life problems.

Lesson 3.1 Ratio and Rate

You have learned from the previous activity all about the ratio. As you have noticed, ratio is simply used to compare
relative values of numbers with the same quantities and is separated by a “colon (:)”. In our previous examples, we use
the same quantity or same kind of units to express the ratio; that is shares, costs, flavors, etc.

a. a:b(odds notation), where the symbol “:” is read as “is to”; or

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b. , b≠0 (fractional notation)

Now, let’s consider the following;

To make lemonade, Dianne bought a lemon squash that is to be mixed with water

She plans to mix each lemon squash with 250 mL of water. We could express it as:
or 1:250

Notice that the example given has a different unit; one lemon squash, and 250 mL of water. Thus, it defies the definition
of ratio. This is what we call Rate.

Rate is the comparison of quantities having different units expressed in the simplest form. In the above example, the
rate shows the comparison of quantities lemon squash and the number of mL of water. In rates, quantities being
compared have different units. Study the following examples.

Example 1. A car travelled a distance of 150 kilometers in three hours. Find the unit rate comparing the
distance travelled by the car to the time it takes to cover the distance.

Thus, the unit rate is 50 kilometers per hour. This means that the speed of the
car is 50 kilometers per hour or 50 kph.

Example 2. If 12 prints of pictures cost ₱ 360, what is the unit cost of a print per picture?
Solution: = Php 30 per print
Thus, the unit cost of a print per
Lesson 3.2 Proportion picture is ₱ 30.

There were times that we will encounter two or more if equivalent ratio, and that is what we call proportion. For
a better understanding, let’s take a look at the problem below.

Suppose a dozen of apple costs ₱ 240. How = => 1x = 3(240)

much would it be to buy three dozens of x= 720 apples?
Thus, 3 dozens of apple costs ₱720

Two equal ratios form a proportion. That is = or a:b = c:d, wherein ad=bc. In proportion, the product of bc
(means), must be always equal to the product of the ac (extremes). In the given solution for the above problem, notice
that we set 1:240=3:x, since we know that the costs per dozens of apples form a proportion.

One easier way is just to cross multiply it, giving you

Example 1. = 8a=3(40)
8a= 120
a= 15

Example 2. Anna makes 35 pieces of rugs in 7 hours. How many rugs will she make if when work for 9 hours?
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First, is to make it in proportion form, giving us
 7:35 = 9:x
 7x = 9(35)
 7x = 315
 X = 45
Thus: Anna can make 45 rugs in 9 hours.

TOPIC TITLE: Types of Proportion

MODULE # 1
Module Learning Objectives:
At the end of this lesson, you should be able to:
1. differentiate direct, inverse, and partitive proportion;
2. identify if the problem illustrates a direct, inverse, or partitive proportion; and
3. solve for direct, inverse, and partitive proportion problems.
4.
LET'S GET STARTED!
The concept of proportion can always be observed in the business field. In the market, we can apply
direct proportion to know if the sales are good by looking at the sales ratio. In human resources, indirect
proportion is used to see the accurate number of the employee to do a certain job. While partitive proportion
can be seen on getting the exact partition for a certain whole.

Lesson 4.1 Direct Proportion

Direct proportion is also applied in business. For instance, the total amount of sales is directly
proportional to the number of gadgets sold. The more the gadget is sold, the higher the total sale is. Consider the
following problems.

Example 1: If ten laptops cost ₱ 200,000, then how much would it cost to buy eight laptops?

We see that the greater the = = => 10x=8(200,000)

number of laptops, the higher is x = 160,000 the cost. Setting up the ratio, we
obtain:

In the problem, the number the laptops and cost are directly proportional since the more you buy
laptops, the higher the amount will be.

Decrease on one,
decrease on the other

Increase on one,
increase on the

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other

Direct Proportion has two quantities that are related in such a way that the increase or decrease in one will
produce the same kind of change in the other quantity. If two quantities are directly proportional, their ratio is
constant, such:

Example 2: If 12 gallons of gasoline cost ₱ 540, how much will be the cost of 20 gallons?

By the problem, you will know that the higher the number of gallon to buy,
the higher the cost.

Setting up the ratio, we obtain:

=> 12x=20(540)
x = 900

Lesson 4.2 Indirect Proportion

Indirect proportion is applied when two quantities show an inverse relationship. It is commonly used to solve
time and speed problems, and work problems in business. Let’s study the following examples.

Indirect Proportion exists between two quantities that are Increase on one,
decrease on the related in such a way that the increase or decrease in one will produce the
other, and vice opposite kind of change in the other quantity. If two quantities are versa
inversely proportional, their product is constant, such:

Example 3. In 30 minutes, 2 men can transport 200 books from one building to another. How long
will it take for 8 men to do the same job?

Step 1: Identify the problem and determine the x and y.

By the given problem, let x be the number of men and y is the
amount of time.

So, X1 = 2, Y1 = 30, X2 = 8 and Y2 is unknown.

Since the problem is indirect/inversely proportion, we will use the formula

Step 2: Substitute the given values in the equation and solve for the unknown

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(2)(30)= (8) Y2
8y = 60 y = 7.5 thus, it will take 7.5 minutes for 8 men to transport 200 books.

Example 4. If a certain job can be finished by 18 workers in 26 days, how many workers are needed to finish
the job in 12 days?
Step 1: Identify the given problem and determine your x and y. In this problem, let x be the number of workers
and y is the number of days.

With that, X1 = 18, Y1 = 26, Y2 =12 and X2 is unknown.

Step 2: Substitute the given to the formula, so

(18)(26) = 12X2
12x=468 x = 39 thus, 39 people is needed to finish
the job in 12 days.

Lesson 4.3 Partitive Proportion

This type of proportion is used mostly in computing for the partition of whole proportional to the given ratio. For
instance,

Example 5. Dad wants to give ₱ 4,500 to his three children in the ratio of 2:3:4 for their weekend allowance. How
much will be the amount to receive of each of his children?

Step 1: Identify the given problem and what is asked. In this problem, what we are looking for is the amount for each child to
receive.
Since the partition ratio 2:3:4, by summing it, we get 9. Meaning there are 9 parts to be partition.
4,500 ÷ 9 = 500 in each partition

Step 2: We can now compute for what is asked by the given ratio (2:3:4).

500 (2) = 1000

500 (3) = 1500
500 (4) = 2000,
thus, the amount to be receive of the children is 1000:1500: 2000

Example 6. The ratio of boys to girls is 5:9 respectively. If there are 20 boys, how many girls are there in class?

Step 1: Identify the given problem and what is asked. Since the partition ratio 5:9, by summing it, we get 14.
Meaning there are 14 parts to be partition.
Given that the ratio of boys is 5, and their total number is 20, 20÷5
= 4 in each partition.
Step 2: We can now compute for the number of girls, by multiplying the ratio of girls (9) by the number of each
partition (4).
9 x 4 = 36 girls,
thus, in the class there are 20 boys and 36 girls in total.

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Nice work on your lesson so far! Now that you have already reviewed ratio and proportion, let’s now see how much you’ve
learned from your pace so far.

*Write Your answer in a separate sheet of paper

A. Write your answer on a 1 whole sheet of yellow paper. You may use the same paper for your answers on the
next activity below.
1. Change 7/8 to decimal form.
2. Change 1.25 to fraction form.
3. Convert 0.656 to its decimal form.
4. Change ten and a half into percent.
5. Convert 1.56 into decimal form.

B. Do the conversion of what is missing by the given below.

Fraction Decimal Percent
6. ⅗ _______ _______
7. 9/2 _______ _______
8. _______ 1.75 ______
9. _______ 0.125 ______
10. _______ _______ 45%

C. I will be giving a pair of ratio or rates. Your task is to DETERMINE IF the quantities in each given is
proportional. Explain your reasoning.

11. 98 words typed in three minutes; 162 words typed in five minutes.

12. 6 points scored in four games; 48 points in eight games.

*Write Your answer in a sheet of paper.

Read the following questions carefully to answer. Write your answer on a piece of paper.
a.Compute for what is asked.
1. What percent of 90 is 75?
2. 35 is 25% of what number?
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3. What is 15% of 1840?
4. 135 is what percent of 90?
5. 690 is 150% of what number?

b. Identify what is asked to solve for each of the following problems involving proportions. Write your answers on a 1
whole sheet. You may use the back page of for your answer at the above activity.

6. A box of pencils costs ₱ 30. How much will be the costs of a dozen box?

7. Three kittens can finish eight boxes of cereals in a week. How many boxes of cereals are needed weekly to
feed an additional five kittens?

8. John has a two-thirds share in their food business. He sold half of his share for ₱20,000. What has his total
share before selling? How much is the total capital for the food business?

9. Mr. Alcantara gave ₱50,000 as the club fund for the upcoming school fair. Math club, Science club, and art
club will share the amount in the ratio of 2:3:5. How much will she give for each group?

10. A family has what they estimate to be a 30-day supply of food. However, after 10 days, only an 18-day food
supply remains. If they continue to eat at the same rate, how many days will the food last for the family?

References
Books:
Armas, M. F. (2017). ConceptualMathandBeyond.Quezon: Brilliant Creation.
Lopez, B. R., Lundag, L. M., & Dagal, K. A. (2019). BusinessMathematics.Quezon: Vibal Group, Inc.

Online Resources:
Grayson.Edu. (2020, July 06). Retrieved from Students Academic Resources:
https://www.grayson.edu/currentstudents/Academic%20Resources/student-labs/math-hub-
pdfs/Fraction%20Review.pdf Media, C. (2020, July 07). GenMath. Retrieved from Gen Math:
http://getmath.ca/courses/percentage/calculating-base

Timeline!

Let’s be mindful of your deadline.

Activity Name of Activity Date of submission Remarks

Number

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 Business Mathematics
Module Content || Prelim
Module 1
1 Application

2 Assessment

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