AIR UNIVERSITY

Faculty of Basic and Applied Sciences

Department of Mathematics

SUBJECT: Business Mathematics (MA-104) (Credit Hours: 3-0) (Contact Hours: 3/week)
Pre-requisite:

Text Book: Frank S. Budnick, Applied Mathematics for Business, Economics and social sciences
McGraw Hill, Inc, 4 edition
th

Reference Book(s): 1. E.K.Bowen, G.D. Pritchett and J.C. Saber, Mathematics with Applications in
Management and Economics, Irwin Homewood.Illinois,6 edition, (1987)
th

2. Mirza Muhammad Hassan and Muhammad Ali Mirza , Business Mathematics,

Publisher FarooqKitabghar Karachi, 3 edition(2001).
rd

Course Aim: The business mathematics consists of equations, functions and series which are the most
useful tools for business. The problems done in class will be highly correlated to
business, bank and insurance. The course also aims to motivate and provide students with
a sense of purpose for studying mathematics.
Course Catalogue: Preliminaries, Linear equations, System of Linear equations, Mathematics functions,
Linear Functions and their applications, Quadratic and polynomial Functions,
Exponential and Logarithmic Functions, Progressions of Sequences and Series and their
applications in business, Mathematical finance.
Course Learning Outcomes: Upon successful completion of this course, students should be able to:

1. define basic terms in the areas of business calculus and financial mathematics
2. Solve business arithmetic operations with fractions to do business problems, and be able to
select which math method needs to be used to do problems
3. Use percentages, ratios, and proportions for business applications such as discounts,
markups, and markdowns, and be able to differentiate which math methods should be used
for different problems
4. Use simple and compound interest to do business calculations such as value of money,
maturity value, promissory notes, present value, and future value and be able to
differentiate which math method should be used for different problems.
5. connect acquired knowledge and skills with practical problems in economic practice

ASSESSMENT:
Quizzes 15%
Home Assignments 5%
Mid Term Examination 30%
Final Examination 50%

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COURSE BREAKDOWN / LECTURES PLAN

Week Topic

1 Preliminaries, Expressions, Equations, First degree and second degree

equations in one variable.
2 Solving second degree equations. Linear Inequality, quadratic inequality and
their solutions.
3 Absolute Value and their properties, absolute with equality and inequality.
Rectangular coordinate systems
4 Characteristics of linear equations, graphical Characteristics, Slope-intercept
form, Determining the equation of a straight line.
5 Linear equations involving more than two variables, Two variables system of
equations.
6 Basic Row operation, Gaussian elimination method, Selected applications.

7 Functions, Types of functions, Linear functions and their applications.

8 Cost, Revenue and Profit functions, Break-even models, break-even analysis.

9 Quadratic functions and their characteristics, Quadratic functions and their

application.
10 Polynomial and rational functions, characteristics of exponential functions.

11 Applications of exponential functions, Logarithmatic functions and its

applications.
12 Sequences, Arithmetic and geometric sequences, Series, Infinite series and
their applications.
13 Interest and its computations, single payment computations.

14 Annuities and their present value, Effective interest rates.

15 Mortgages, The advantage of the biweekly mortgage payment

16 Cost-benefit analysis, analysis, Discounts cash flow. Extensions of

discounted cash flow analysis.

Course Instructor: Mr. AsifMehmood Bhatti (asif.mehmood@mail.au.edu.pk)

Office: IAA-Block, Room: 408

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