Commercial Math

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Introduction to Commercial Math

“It’s all about that Cha-Ching, Cha-Ching”

Money is what makes the world go round, and mathematics is the centripetal force that governs it. From simple transactions to banking, taxes and discounts, everything that involves money, involves math!

The Big Idea: What is Commercial Math?

Money is one of the most important engines in the professional world. At the end of the day, most things that you do to interact with the outside world has a monetary value attached to it. Which is why it is crucial that we are well versed with handling all the calculations that revolve around money.

How do I understand?

The Foundational Nature of Commercial Math

Commercial math isn’t a single topic, it is a whole host of concepts and ideas working in tandem to help you achieve one thing: Mastery over money.

Why Commercial Math? Why is it Important?

Let’s be honest, money is one of the most interesting topics to study about and frankly, that’s not even the tip of the iceberg when it comes to the most important and interesting aspects of commercial math.

Sub Topics

Here are a few links that will take you through the journey that every Cuemath students undertakes in the pursuit of understanding Commercial Math along with practice worksheets:

How to Teach Your Child the Commercial Math

The thing to keep in mind is that these are just the beginning. Commercial Math grows in to influence entire fields of study like economics, accountancy, banking. Essentially, once you have a grasp of the basics of commercial math, the entire economic world is your oyster.

Formulae:

Simple Interest Formulae:

\(\begin{align}&P=\text{Principal Amount,} \\ &R=\text{Rate of Interest,} \\ &T=\text{Time Period,} \\ &S\,I=\text{Simple Interest}\end{align}\)

\[\begin{align}S\,I=\frac{P\times R\times T}{100}\end{align}\]

\[\begin{align}P=\frac{100\times S\,I}{R\times T}\end{align}\]

\[\begin{align}R=\frac{100\times S\,I}{P\times T}\end{align}\]

\[\begin{align}T=\frac{100\times S\,I}{P\times R}\end{align}\]

Compound Interest Formulae:

\(\begin{align}&P=\text{Principal Amount,} \\ &R=\text{Rate of Interest,} \\ &T=\text{Time Period,} \\ &S\,I=\text{Simple Interest}\end{align}\)

\[\begin{align}C\,I=P{{\left( 1+\frac{R}{100} \right)}^{T}}\end{align}\]

Profit and Loss Percentage:

\[\begin{align} Gain \,\%=\left( \frac{\ Gain \times 100\ }{Cost\ Price} \right) \end{align}\]

\[\begin{align} Loss \,\% =\left( \frac{\ Loss\times 100}{Cost\ Price} \right) \end{align}\]

\[\begin{align} Selling\ Price=\frac{(100+Gain \,\%)}{Cost\ Price}\times (Cost\ Price) \end{align}\]

\[\begin{align} Selling\ Price=\frac{(100-Loss\,\%)}{100}\times (Cost\ Price) \end{align}\]

\[\begin{align} Cost\ Price=\frac{(100\times Selling\ Price)}{\left( 100+Gain\,\% \right)} \end{align}\]

\[\begin{align} Cost\ Price=\frac{(100\times Selling\ Price)}{\left( 100-Loss\,\% \right)} \end{align}\]