COM 1503 BUSINESS MATHEMATICS


This course, introduces students to basic mathematical principles, laws and rules that are necessary to develop an overview of application capabilities of the subject matter in the field of business and economics. Business Mathematics course begins with brief review of arithmetic and algebra. It also covers functions, differentiation, partial derivatives, integration, and mathematics of finance. The course also includes the applications of differentiation and integration in business and economics.

To prepare students for the mathematical and analytical applications required for future courses in areas such as economics, statistics, and operations research. At the end of this course students are expected to have a thorough knowledge of mathematical tools and techniques relating to algebra, calculus, and financial mathematics.

Upon completion of this course, the students will be able to:

  • Simplify algebraic expressions
  • Solve linear, quadratic and simultaneous equations
  • Solve system of linear equations using matrices and Cramer’s rule
  • Solve problems that involve applications of functions in business and economics
  • Differentiate functions of one variable and two variables using differentiation rules, and find their maximum and minimum values
  • Integrate simple functions and evaluate definite integrals of simple functions
  • Apply integration to solve various problems in business and economics
  • Solve business problems involving simple interest and compound interest

Solve business problems involving simple ordinary annuities.

1. Algebra Basics
1.1 The Real Number System
1.2 Algebraic Expressions
1.2.1 Indices and Index Rules
1.2.2 Simplifying Algebraic expressions
1.2.3 Factorisation
1.2.4 Fractions
1.3 Equations
1.3.1 Linear Equations
1.3.2 Quadratic Equations
1.3.3 Simultaneous Equations
1.3.4 Applications of Equations

2. Matrices
2.1 Matrix addition and Scalar Multiplication and Matrix Multiplication
2.2 Solutions of systems of Linear Equations by Matrices

3. Functions
3.1 Definition: Notation and Evaluation
3.2 The Arithmetic of Functions
3.3 Graphs in Rectangular Coordinates
3.3.1 Straight Lines and Equations of a Line
3.3.2 Graphs of Quadratic Equations (Parabolas)
3.4 Applications of Functions in Business and Economics
3.4.1 Cost, Revenue and Profit Functions
3.4.2 Break Even Analysis
3.4.3 Demand and Supply Functions

4. Differentiation
4.1 Limit of a Function
4.2 Basic Rules for Differentiation
4.3 Successive Differentiation
4.4 The Sign of the Derivative and Nature of Function
4.5 Relative Maximum and Relative Minimum points of a Function
4.6 Applications of Differentiation
4.6.1 The derivative as a rate of change
4.6.2 Marginal Functions
4.6.3 Optimization of Functions in Business and Economics
4.6.4 Elasticity

5. Functions of Several Variables and Partial Derivatives
5.1 Functions of Several Variables
5.2 Partial Derivatives
5.3 Applications of Partial Derivatives
5.4 Second Order Partial derivatives
5.5 Optimization of Functions Two Variables

6. Integration
6.1 Indefinite Integration
6.2 Basic Rules of Integration
6.3 The Definite Integration
6.4 Area Between Curves
6.5 Applications of Integrations in Business and Economics
6.5.1 Integration of Marginal Functions
6.5.2 Total Change of Functions
6.5.3 Consumers’ Surplus and Producers’ Surplus

7. Mathematics of Finance
7.1 Simple Interest and Compound Interest
7.2 Present Value
7.3 Investment Appraisal
7.4 Annuities
7.5 Sinking Funds and Amortization

Lectures, seminars, course manuals, workshops, assignments, self study.

  1. Anderson, R.D and Smith, C.L (1976) Calculus for Business, Pennsylvania State University.
  2. Budnick, F.S (1993) Applied Mathematics for Business, Economics, and the Social Sciences, Fourth Edition, McGraw-Hill Education.
  3. Donald L. Stancl, Mildred L. Stancl (1988) Brief Calculus for Management and the Life and Social Sciences.
  4. Edward D. Gaughan, E.D and Hall, C.E (1983) College Algebra and Trigonometry, R. R. Bowker- University of Michigan.
  5. Ernest F. I. Haeussler, Jr; Recherd S. Paul. (2009) Introductory Mathematical Analysis, 10th edition, Prentice-Hall.
  6. Macpherson, M.D (1982) Mathematics Applied to Business Problems, Bowker.
  7. Sullivan, M and ‎Mizrahi, A (2004) Mathematics and Applied Approach (Seventh Edition ), John Wiley & sons.