Introduction to Financial Math Study Guide Notes #3

Introduction to Financial Math NotesBasic Math ConceptsDevelop fluency in addition, subtraction, multiplication, and division of basic operations with and without calculators.I know how to do this.Solve one- and two-step problems involving whole numbers, fractions, and decimals using addition, subtraction, multiplication, and division.I know how to solve problems that involve whole numbers, fractions, and decimals.Solve practical computation problems for business such as calculating wages after taxes, developing a budget, and balancing a checkbook.I know how to do thisAnalyze problem statements for missing/irrelevant data; estimate/exact values, and inconsistent parameters.I know how to do thisIdentify business math terms.-interest-ABA-credit-liablities-assets-profit-credit-net profitProve that results of computations using whole numbers, fractions, decimals, percents, and proportions are correct.can be ratiosRecognize patterns and relationships among numbers.Finding patterns and similar things among numbers can be useful to solve problems quickly.Estimate the results of rational number computations and judge the reasonableness of the results.I know how to do this.Identify and use relationships between operations, such as division as the inverse of multiplication to solve problems.additionsubtractionApply relational (equal, greater than, less than, etc.) and logical operations in a logical expression.used to form logical expressions.Select appropriate methods and tools for computing with whole numbers from mental computation, estimation, calculators, and paper and pencil.ik how to do thisConvert within and between measurement systems (metric and customary) and monetary systems using technology where appropriate.ik how to do thisEstimate conversions between the customary and metric systems.get the conversion rate between the systems and then multiple/divide to get to the other systemUse the appropriate type of unit to calculate measurement of length, area, weight, volume, angles, and perimeter.use the unit that the question is asking forConstruct or draw figures with given perimeters and areas.I would draw the figure and then write the necessary units/numbers where it's necessaryInterpret scale drawings and models using maps and blueprints.ik how to do this.Use touch method on calculator to solve math problems that relate to business and industry.ik how to do thisConsumer CreditDefine credit and credit terms.credit: ability to obtain goods before payment based on the trust that you will pay in the future.Identify the costs and benefits of various types of credit.Credit : trustDebit: don't need to worry whether or not you can afford to pay in the future.Calculate sales tax.multiply sales tax with price of itemCompute total purchase price with interest added.compute interest and add to purchaseCompute the costs involved in owning and buying an item such as an automobile.Add the price of initially buying along with other necessary payments and then any repeated cost after buying togetherCompute finance charges for single payment loans.multiple/add the charges to the paymentCompare installment and revolving credit costs.Installment: had a predetermined length (essentially a loan), will receive the money borrowed all at onceRevolving Credit: pay money back, get creditCalculate installment loan costs such as amount financed the installment price, finance charge, and installment payment.P (r(1+r)^n)/((1+r)^n-1)Find the estimated annual percentage rate (APR) using a table.APR = ((Interest + Fees / Loan amount) / Number of days in loan term)) x 365 x 100Find the finance charge and new balance using the average daily balance method.by multiplying the card's balance for each day by the finance chargeData Analysis and ProbabilityUsing a data set, determine mean, median, and mode.i know how to do thatDetermine the type of average that best represents the measure of central tendency.decide based on what info they wantDistinguish between a simple average and a weighted average and calculate each.i know how to do thatIdentify and construct various types of graphs and charts.i know how to do thatCompile and arrange facts in an organized manner for a table, chart, or figure.i know how to do thatExplain or prepare written summary of findings expressed in tables, charts, graphs, and figures. Use the information on the table, chart, graph, or figure to output the info that is being asked ofMake predictions and decisions based on data and communicate their reasoning.i know how to do thatDecimalsRound decimals to the nearest tenth and nearest hundredth.round to the 0.# place and 0.0# placeAdd, subtract, multiply, and divide decimals.i know how to do thatConvert a decimal to a fraction.i know how to do thatConvert a fraction to a decimal.divide the top number by the bottom oneRead and write decimals using the place-value structure of the base-ten number system.i know how to do thatSolve business problems with currency.i know how to do thatDiscountsIdentify the various types of discounts.sale discountseasonal discountreferral discountsloyalty discountsCalculate the percentage of a discount of an item.Divide the discounted price by the original price, subtract the decimal by one, and convert the decimal into a percentageCalculate a chain discount and net selling price.Calculate the first discount and then get the new number and calculate the discount from that number and repeat through the chain discountCalculate trade discounts and net selling price.multiple the original price by the discount priceCalculate cash discounts and net selling price.Multiple the original price by the discount priceFractionsAdd, subtract, divide, and multiply fractions and mixed numbers with like (common) and unlike denominators.Add: convert fractions to common denominators and add them and simplifysubtract: convert to common denominators and subtract and simplifymultiply: multiply numerator with numerator and denominator with denominator and simplifydivide: KCFWork flexibly with fractions to solve application problems.i know how to do thatConvert fractions to decimals, decimals to fractions, and use properties of basic operations to simplify fractional arithmetic expressions.f -> d: divide numerator by denominatord -> f: put it over the last digit place (ex: 0.79 -> 79/100) and simplify Convert an improper fraction to a whole or mixed number.whole: divide the top number by the bottom number mixed: reduce/divide the top number by the bottom number and put the remainder over the denominator and simplifyConvert a whole or mixed number to an improper fraction.multiply the whole number by the denominator and add it to the numerator (if there is one)Reduce a fraction to lowest terms and raise a fraction to higher terms.i know how to do thatApply appropriate methods for computing with fractions from among mental computation, estimation, calculators, or computers and paper and pencil.i know how to do thatPercentagesDefine the terms base, rate, and percentage and identify them in word problems.Base: the base numberRate: how much something (percent) is over a period of timePercentage: the percent something isSolve for base, rate, or part in a percent problem.ik how to do thisConvert a whole number, fraction, or decimal to a percent.i know how to do thisConvert a percent to a whole number, fraction, or decimal.i know how to do thisUse the percentage formula to find the unknown value when two values are known.i know how to do thatFind the rate or the base in the increase or decrease of an item.i know how to do thatCalculate markup and markdown of original value of item.i know how to do thisCalculate simple interest.i know how to do that