Mathematics

COM-C-442 – BUSINESS MATHEMATICS (CORE – 10)
Credit: 06 (5 Lectures + 1 Tutorial + 0 Practical)

Total Credit Hour: 60 hours
Internal Assessment: 20 marks
End Semester Examination: 80 Marks
Total Marks: 100 Marks
Course Objective:
The course aims to familiarize the students with the basic mathematical tools with special
emphasis on applications to business and economic situations. Course Outcome: After
completion of the course, students will be able to explain how matrices are used; apply
differential calculus; solve business problems involving complex linear and non-linear
relationships; apply mathematical formulation and solution of problems related to finance;
and do programming for business problems.
Module – 01: Matrices and Determinants:
Definition and types of matrix, Algebra of matrices, Inverse of a matrix- Business

Applications. Solution of system of linear equations (having unique solution and involving not
more than three variables) using Matrix Inversion Method and Cramer’s Rule. Leontief Input
Output Model (Open Model Only).
Module – 02: Basic Calculus:
Mathematical functions and their types (linear, quadratic, polynomial, exponential,

logarithmic and logistic function). Concepts of limit and continuity of a function; Concept of
Marginal Analysis. Concept of Elasticity, Applied Maxima and Minima problems including
effect of Tax on Monopolist’s Optimum price and quantity, Economic Order Quantity.
Module – 03: Advanced Calculus:
Partial Differentiation: Partial derivatives up to second order. Homogeneity of functions and

Euler’s theorem; Total differentials. Differentiation of implicit functions with the help of total
differentials; Maxima and Minima involving two variables – Applied optimization problems
and Constraint optimization problems using Lagrangean multiplier involving two variables
having not more than one constraint; Integration: Standard forms & methods of integration-
by substitution, by parts and by the use of partial fractions; Definite integration. Finding
areas in simple cases; Application of Integration to marginal analysis; Consumer’s and
Producer’s Surplus. Rate of sales, The Learning Curve.
Module – 04: Mathematics of Finance:
Rates of interest: nominal, effective and their inter-relationships in different compounding

situations; Compounding and discounting of a sum using different types of rates. 40 | P a g e
Applications relating to Depreciation of assets and Equation of value; Types of annuities:
ordinary, due deferred, continuous, perpetual. Determination of future and present values
using different types of rates of interest. Applications relating to Capital expenditure, Leasing,
Valuation of simple loans and debentures, sinking fund (excluding general annuities).
Module – 05: Linear Programming:
Formulation of Linear programming problems (LPPs), Graphical solutions of LPPs. Cases of

unique solutions, multiple optional solutions, unbounded solutions, infeasibility, and
redundant constraints; Solution of LPPs by simplex method - maximization and minimization
cases. Shadow prices of the resources, Identification of unique and multiple optimal
solutions, unbounded solution, infeasibility and degeneracy; The dual problem: Formulation,
relationship between Primal and Dual LPP, Primal and Dual solutions (excluding mixed
constraints LPPs), Economic interpretation of the dual.
References:
1. Anthony, M., & Biggs, N. Mathematics for Economics and Finance. Cambridge University Press. 41
|Page
2. Ayres, F. J. (1963). Theory and Problems of Mathematics of Finance. McGraw Hill.
3. Budnick, P., Applied Mathematics for Business, Economics, & Social Sciences. McGraw Hill
4. Dowling, E. (2011). Introduction to Mathematical Economics. McGraw Hill
5. Kapoor, VK & Sancheti, DC, Business Mathematics-Theory & Application. S. Chand
6. Sharma, S. K., & Kaur, G. (2019). Business Mathematics. Delhi: S. Chand.
7. Thukral, J. K. Business Mathematics. New Delhi: Maximax Publishing House.

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COM-C-442 – BUSINESS MATHEMATICS (CORE – 10)

Credit: 06 (5 Lectures + 1 Tutorial + 0 Practical)

Module – 01: Matrices and Determinants:

Definition and types of matrix, Algebra of matrices, Inverse of a matrix- Business

Module – 02: Basic Calculus:

Mathematical functions and their types (linear, quadratic, polynomial, exponential,

Module – 03: Advanced Calculus:

Partial Differentiation: Partial derivatives up to second order. Homogeneity of functions and

Module – 04: Mathematics of Finance:

Rates of interest: nominal, effective and their inter-relationships in different compounding

Formulation of Linear programming problems (LPPs), Graphical solutions of LPPs. Cases of

2. Ayres, F. J. (1963). Theory and Problems of Mathematics of Finance. McGraw Hill.

4. Dowling, E. (2011). Introduction to Mathematical Economics. McGraw Hill

5. Kapoor, VK & Sancheti, DC, Business Mathematics-Theory & Application. S. Chand

6. Sharma, S. K., & Kaur, G. (2019). Business Mathematics. Delhi: S. Chand.

7. Thukral, J. K. Business Mathematics. New Delhi: Maximax Publishing House.

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