BUS 250 covers the algebra and geometry of linear, quadratic, exponential, and logarithmic functions as applied to the mathematics of finance – annuities, perpetuities, present value. BUS 250 also covers derivatives, graphical analysis, and mathematical models as applied to business, with selected coverage of algebra, geometry, and calculus emphasizing business applications and decision making.
Upon successful completion of BUS 250, the student should be able to:
- Solve linear, quadratic, exponential and logarithmic equations – with applications to business like solving for interest rate(s) and solving for various terms of investment.
- Describe the derivative of a function, and apply rules for differentiation.
- Apply derivatives in curve sketching with applications to business as in solving for marginal revenue/cost, marginal tax rate, minimum cost, and maximum profit.
- Calculate present and future values (PV and FV) of simple and compound interest.
- Apply formulas for interest to solve problems involving installment buying and credit card purchases.
- Apply formulas for interest to solve problems involving debt consolidation and rescheduling of debt payments.
- Apply formulas for interest to solve problems involving issuing and discounting promissory notes, and government/corporate bonds.
- Solve for PV, FV, payment, interest, and duration of ordinary/due simple annuities, general annuities, deferred annuities, sinking funds, and constant growth annuities.
- Solve for PV, payment, and interest rate for ordinary and due perpetuities.
- Describe the various types of mortgage loans; use amortization schedules, and calculate the various components of mortgage payment(s).
- Apply amortization tables to calculate the various components of mortgage payments(s), and refinancing options.
- Master the use of financial calculator(s) and Excel to formulate, analyze, and interpret mathematical models in business, and to develop models to solve time value of money (TVM) problems.
BUS 250 resource page