Solution Manual for Business Mathematics in Canada 11th Edition by F. Ernest Jerome.

Solution Manual for Business Mathematics In Canada 11th Edition By F. Ernest Jerome

CHAPTER 1 Review and Applications of Basic Mathematics Appendix 1A: The Texas Instruments BA II PLUS CHAPTER 2 Review and Applications of Algebra CHAPTER 3 Percent and Percent Change CHAPTER 4 Ratios and Proportions CHAPTER 5 Mathematics of Merchandising 5.2 Supplement: Other Notations for Terms of Payment (on Connect) 5.3 Supplement: Diagram Model for Markup Problems (on Connect) CHAPTER 6 Applications of Linear Equations Appendix 6A: The Texas Instruments BA II PLUS Break-Even Worksheet CHAPTER 7 Simple Interest Appendix 7A: An Aid for Determining the Number of Days in Each Month Appendix 7B: The Texas Instruments BA II PLUS Date Worksheet CHAPTER 8 Applications of Simple Interest Appendix 8A: Promissory Notes CHAPTER 9 Compound Interest: Future Value and Present Value Appendix 9A: Instructions for Specific Models of Financial Calculators CHAPTER 10 Compound Interest: Further Topics and Applications Appendix 10A: The Texas Instruments BA II PLUS Interest Conversion Worksheet Appendix 10B: Logarithms Appendix 10C: Annualized Rates of Return and Growth (on Connect)CHAPTER 11 Ordinary Annuities: Future Value and Present Value CHAPTER 12 Ordinary Annuities: Periodic Payment, Number of Payments, and Interest Rate Appendix 12A: Derivation of the Formula for n from the Formula for FV_(on Connect) Appendix 12B: The Trial-and-Error Method for Calculating the Interest Rate per Payment Interval_(on Connect)CHAPTER 13 Annuities Due Appendix 13A: Setting Your Calculator in the Annuity Due Mode CHAPTER 14 Annuities: Special Situations CHAPTER 15 Loan Amortization: Mortgages 15.4: Mortgage Loans: Additional Topics (on Connect) Appendix 15A: Instructions for the Texas Instruments BA II PLUS Amortization Worksheet Appendix 15B: Amortization Functions on the Sharp EL-738 Calculator CHAPTER 16 Bonds and Sinking Funds Appendix 16A: Instructions for the Texas Instruments BA II PLUS Bond WorksheetCHAPTER 17 Business Investment Decisions

1

Review and Applications of Basic Mathematics

Exercise 1.1 a. b. c. d. e. f. g. h.

10 + 10 x 0 = 10 + 0 = 10 2x2+4–8=4+4–8=0 (10 + 10) x 0 = 20 x 0 = 0 2 x (2 + 4) – 8 = 2 x 6 – 8 = 12 – 8 = 4 0 + 3 x 3 – 32 + 10 = 0 + 9 – 9 + 10 = 10 12 – 2 x 5 + 22 x 0 = 12 – 10 + 4 x 0 = 12 – 10 + 0 = 2 0 + 3 x 3 – (32 + 10) = 0 + 9 – 19 = -10 (12 – 2) x (5 + 22) x 0 = 10 x 9 x 0 = 0 22 4 4 4 0 0 4 (4 2) 2 22

i.

4)2

(2

j.

5 2

2

1.

20

4

2. 18 3.

2

3

6

20

4

4. 18

3

6

5. 20

4

2

3

6

7. 54

36

4

8.

5

6.

18

3

2

( 2)2 4 5 4 1

4

8

8

20

8

4

2

6

12

18

2

8

16

2

8

32

8

24

2

18

9

2

2

2

4

8

20 2

8

8

20 24

6

6

2

22

54

9

4

49

32

9

3

82

9

9

3

64

1 3

66

9.

10.

11.

54

36

4 2

5

32

3

82

42

64

4 8

3

2 4 2

2

2 9

48

23 42

8 16

8

4

13. 3 6

4

2

5 17 20

2

14.

4 3

2

2

22

15.

20

8

4

5 19

52

17. $100

1 0.06

9

3

3 102

5

4 5

3

7

12 3

22

16 45 365

1 0.02 1 0.04 0.04

$100

5

19

12

5

3

8

3

$1000 2

$300

0.03

2

3 100 5 9

300

45

255

102

4

12

100

2

4

3

20

40

21

25

36

4

2

2

16

$100 1 0.00739726

12

5

9

81 9

5 19

81

8

9 2

5

100 2

50,000

$100.74

$194.17 $453.51

1.023

$1000

1.061208

$1061.21

0.0816 0.04

$204.00

2

1 $100

1.04 1 0.04

$100

1

1 1 22.

2

3 2

9

$200 $200 1 $200  4 1 0.09 12 0.03 1.03 $500 $500 $500 2 2 1  0.05 1.05 1.1025

20. $1000 21.

5

0.5

4 23

19.

36

6

4

18.

18

3

16

12.

16.

62

18

1

1

1.0609

1

2

$300 0.03

0.942596

$300 0.03

$574.04 0.03

Concept Questions (Section 1.2) 1.

You must retain at least one more figure than you require in the answer. To achieve four-figure accuracy in the answer, you must retain a minimum of five figures in the values used in the calculations. B)

2.

We want six-figure accuracy in the answer. Therefore, values used in the calculations must be accurate to at least seven figures. B)

3.

We want seven-figure accuracy in the answer. Therefore, values used in the calculations must retain at least eight figures. C)

4.

To be accurate to the nearest 0.01%, an interest rate greater than 10% must have four- figure accuracy. Therefore, five figures must be retained in numbers used in the calculations. C)

12.5

Exercise 1.2 1

a.

= 0.10 = 10%

10 2 = 0.40 = 40%

b.

5 1 = 0.25 = 25%

c.

4 3 = 0.75 = 75%

d.

4

1

e.

1 = 1.50 = 150%

f.

2 = 2.3333 = 233.33%

g.

10 = 2.00 = 200%

h.

52 = 5.6667 = 566.67%

i.

0.25 x 80 = 20 0.20 x 120 = 24 Money in Savings = 0.20 x $1000 = $200 Money in TFSA = 0.50 x $200 = $100

2 1 3

5 3

j. k.

7

1.

8

0.87500

87.500%

2.

65 104

0.62500

62.500%

3.

47 20

2.3500

235.00%

9 16

4.

0.56250

56.250%

5. −35 = −1.4000 = −140.00% 25

6.

1 725 1.2800

7.

25

8.

1000

9.

2 2 100

1000

0.025000

2.5000%

40.000

4000.0%

2.0200

202.00%

25

11 132

10.

11.

37.5 50

12.

22.5 12

13.

6

5

1.3438 0.75000

8 3

187.50%

83.3%

2.6

266.6%

15. 7 7 9 7.7

777.7%

16. 1 1

109.09%

11

1.09

134.38%

75.000%

1.8750 0.83

14.

128.00%