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%