Class notes for MAT 152, Business Mathematics

MAT 152: Business Mathematics – Comprehensive Reviewer
University: PHINMA – University of Iloilo

Course: MAT 152 – Business Mathematics

Prepared for: ABM Students

Tags: Financial Mathematics, Statistics, Algebra, Business Applications

I. Financial Mathematics
This section explains financial computations related to interest, annuities, loans,
depreciation, and investments.

1. Simple Interest
Formula: I = P × R × T

Example: ₱10,000 at 5% for 2 years → I = 10,000 × 0.05 × 2 = ₱1,000.

2. Compound Interest
Formula: A = P(1 + R/n)^(nT)

Example: ₱5,000 at 8% compounded annually for 3 years → A = 5,000(1 + 0.08)^3 =
₱6,299.

3. Annuities
Future Value: FV = PMT × [(1 + r)^n – 1] / r

Example: ₱1,000 yearly at 6% for 5 years → FV = 1,000[(1.06)^5 – 1]/0.06 = ₱5,637.

4. Loans and Credit
Formula: PMT = P × [r(1 + r)^n] / [(1 + r)^n – 1]

Example: ₱50,000 at 12% for 12 months → PMT = ₱4,444.

5. Depreciation
Formula: D = (C – S) / N

Example: ₱100,000 cost, ₱10,000 salvage, 5 years → D = ₱18,000 per year.

II. Statistics and Probability
Includes data analysis, probability, correlation, and hypothesis testing.

1. Measures of Central Tendency
Mean = Σx / n | Median = middle value | Mode = most frequent value.

Example: Data: 5, 7, 8, 9, 11 → Mean = 8.