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Kaplan Masterclass
Basic Maths
Introduction
• Symbols
• Order of operations
• Rearranging equations
• Ratios
• Percentages
• Simultaneous equations
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Symbols
Σ Σ = Sum of
^ = to the power of (e.g. 10 2 is 10^2)
√ √ = square root
≥ ≥ = greater than or equal to
≤ ≤ = less than or equal to
= average of
σ
σ = Standard deviation
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• Find the following buttons
- Square: 2
- e.g. 4 2 =
- Raising to any power: or or ^ or □
- e.g. 5 4 =
- Square rooting: √ □ or √
-
e.g. √25 =
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• Find the following buttons
- Calculating any root: x √
or
□ □ √□
√□
- e.g. 4 √81 =
- Log: Log
- e.g. Log 2 =
- Decimal to a fraction: S D
- e.g. 0.85 =
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• Functions to speed up calculations
- Bringing up the last answer: Ans
- Storing a number: STO
- Recalling a number: RCL
- Amending a number: ◄ ◄
TRY TO AVOID RETYPING IN A
NUMBER UNLESS UNAVOIDABLE
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Rounding example
e.g.
- To the nearest thousand
- e.g. 123,456 to the nearest thousand =
- e.g. 987,654 to the nearest thousand =
- To a specific number of decimal places
- e.g. 3.14159265 (pi) to 2d.p. =
- e.g. 3.14159265 (pi) to 4d.p. =
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Order of operations rules
• Brackets
• Order (i.e. raising to the power of)
• Divide or
• Multiply,
• Subtract
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Order of operations illustration
e.g. 7 + (6 x 5 2 +3) = ?
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Order of operations illustration
e.g.
IRR = L +
NPV L
x (H - L)
(NPV L – NPV H )
Where L = 5, NPV L = 40,000, H = 10 & NPV H = 5,000,
what is the IRR?
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Order of operations example
e.g.
PV
=
x
1
(1 + i) n
Where x = 10,000 and i = 10%, what is the value of PV?
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Order of operations illustration
=
2
8
16
4
64
3
11
33
9
121
4
14
56
16
196
9
33
105
29
381
Order of operation illustration
=
∑ 9
∑ 33
∑ ∑ = 105
∑ ∑ = 29
∑ ∑ 381
Rearranging equations rules
• Write out the equation (from a formula sheet or from
memory)
• Replace any letters with numbers that are given in the
information
• When rearranging, you must do the same thing to both
sides of the equation
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Rearranging equations illustration
e.g.
P 0 =
D 0
Dividend yield
Where P 0 = £20 million & D 0 = £1 million,
what is the dividend yield?
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Rearranging equations illustration
e.g.
= a + b
100,000 = a + 4 x 2,000
What is the value of a?
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Rearranging equations example
e.g.
= a + b
5,000 = 100 + b x 50
What is the value of b?
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Ratios
• A ratio is an expression that compares quantities
relative to each other
• Ratios are given in the format a:b:c
• A ratio can be used to show how something is to be spit
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Ratio illustration
e.g. a partnership of 3 partners have an agreement to
share profits of £14,000 in the proportions 1:2:4.
How much will each of the partners get?
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Ratio example
e.g. how much would each shareholder get if the profits
were £250,000 and they were to be split 2:3?
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Percentages
• A percentage is a way of expressing a number as a
fraction of 100
• Per cent (%) = per hundred
• 45% = 45 / 100 = 0.45
• To convert fraction/decimal to a % multiply by 100
• To convert % to a fraction or decimal divide by 100
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Percentages quickly
• The quick way
- DON’T use the ‘%’ button on the calculator
- INSTEAD convert the % given into a decimal by moving the decimal 2
places to the left then use that number in the calculator
- Don’t waste time writing down separate numbers
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Percentages quickly example
e.g.
5% =
15% =
One half of a percent =
125% =
3.894% =
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Percentages quickly illustration
e.g. A sales value of £150,000 will increase by 5% next
year to what?
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Percentages quickly example
e.g. £40,000 with a 3% increase?
e.g. £40,000 with a 23.75% increase?
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Percentages quickly example
e.g. A sales value of £150,000 will decrease by 10% next
year to what?
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Percentages quickly example
e.g. £40,000 with a 30% decrease?
e.g. £40,000 with a 6.40% decrease?
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Percentage changes formulae
• Two ways of calculating percentage change:
New – Old
or
New
Old
Old
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Percentage changes illustration
e.g. What is the percentage change if sales moved from
£5m to £8m?
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Percentage changes examples
e.g. What is the percentage change if sales moved from
£12m to £15m?
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Percentage changes illustration
e.g. What is the percentage change if sales moved from
£8m to £5m?
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Percentage changes examples
e.g. What is the percentage change if sales moved from
£20m to £18m?
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Mark ups
• A mark up is where the profit is expressed as a
percentage of the cost
• e.g. a 25% mark up on £100 cost would mean a profit of
£25
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Mark ups formulae
• Equation approach:
Sales = Cost x (1 + P%)
• Format approach:
Sales
125%
Costs
100%
Profit
25%
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Mark up example
e.g. calculate the sales price for a product with a 30%
mark up that costs £40.
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Mark up example
e.g. calculate the profit for a product with a 20% mark up
and a sale value of £90.
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Margin
• A margin is where the profit is expressed as a
percentage of the sales price
• e.g. a 25% margin on £100 sales price would mean a
profit of £25
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Margins Formulae
• Equation approach:
Sales
=
Cost
(1 - P%)
• Format approach:
Sales
100%
Costs
75%
Profit
25 %
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Margin example
e.g. calculate the sales price for a product with a 30%
margin that costs £42.
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Margin example
e.g. calculate the profit for a product with a 20% margin
and a sale value of £90.
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Simultaneous equations rules
Two linear equations both containing unknown values of and
Step 1:
Multiply one or both equations so that the number of either ’s or ’s is equal
Step 2:
S btract one e
u
ac
o
e
equa o
ation from the other to remove either the
o
e
o
e
o
e
ove
e
e
e s
’s or the
o
e s
’s
Step 3:
Rearrange the resulting equation to find the value of either or
Step 4:
Substitute the value calculated in step 3 into one of the original equations
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Simultaneous equations illustration
e.g. Solve the following to find and
5 + 2 = 34
+ 3 = 25
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Simultaneous equations illustration
e.g. Solve the following to find and
5 + 2 = 18
6 + 3 = 24
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How does it help?
Knowledge
Speed
Calculations
Confidence
Improved chance of success
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Order of operations questions
e.g.
6
x (5 + 3) =
5
x 2 2 =
2
+ 5 x 3 =
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Order of operations question
e.g.
a b
where
b = log r
log 2
What is the value for ?
When
a = 10
= 4
r = 90%
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Rearranging equations question
F = O(1+g) n
e.g. What is the growth rate (g) if the original figure is
10,000 (O), the final figure is 13,310 (F), and the
number of years of growth is 3 (n)?
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Ratio question
e.g. how much would each shareholder get if the profits
were £360,000 and they were to be split 2:3:4?
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Simultaneous equations question
e.g. Solve the following to find and
8 + 4 = 64
7 + 2 = 50
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