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Business Math

In this section we will discuss about business math.
Every day we interact with many people. The reasons are different i.e; personal, professional, business etc. In professional & business interactions, we commonly use mathematical terms like percentage, profit & loss, discounts, simple & compound interest etc. In
business math section, we at ask-math have attempted to explain & apply these terms in an easy to understand way & help individuals to use these terms in their day today life. In academia, these terms form the basis of higher levels of “Commercial Mathematics" and practically used in accounting, inventory management, forecasting, financial analysis etc.
Business math forms an important part & also known as Commercial maths or consumer maths.

Table of Contents : Commercial Math


  • Percent : which comes from the Latin word "per centum" which means "per hundred". Percentage is the result of multiplying a quantity by percent.
  • Profit and loss : Profit is a surplus remaining after deducting total cost from revenue. More the profit, better the success of any enterprise or business. Loss is opposite of profit & to put it simply, its gain or loss which can be measured
  • Discount Discount is a reduction in price from manufacturer / seller to encourage the buyer in picking the stock in bulk & reduce inventory. Discounts are most commonly used in sales promotion.
  • Interest: is a fee/compensation paid by the borrower to the asset owner for using his assets I a particular time frame. There are two types of Interest : Simple interest & compound interest.

  • Simple Interest (S.I) : Simple interest is calculated on principle amount or unpaid balance principle amount on percentage basis.

  • Compound Interest : Compound interest is calculated by adding principle + interest from that moment,the interest also earns interest. For eg: $100/- is kept in a bank @ 10% interest for one year will be $110/-.Next year, the compounded interest will be calculated on $110/- so by the end of 2nd year,the amount will be $121


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