Business Mathematics Lecture Note 2

BUSINESS MATHEMATICS LECTURE NOTE 2
Lecture 1: BASE, RATE, AND PERCENTAGE
Base – refers to the total amount, original amount or the whole part. It is the number represents
100%, or the total value of something, or the whole thing. The base is usually preceded by the word
“of” in the given statement because it is being multiplied by the rate.
If the rate is less than 100%, the percentage is less than the value of the base.
Percentage – (portion) represents a part of the base or whole.
Percentages - part or partial amount of the base. Percentages are important for understanding the
financial aspects of everyday life. The symbol for percent is % and its similarity to /100 reminds us of
its meaning.
Percentage is another way to write fractions with a denominator of 100.
Rate – defines what part the percentage is of the base. This is the quantity or amount or measure of
the portion to the base.
This is usually written in percent, but it may also be a decimal or fraction.
Formulas:
Percentage = Rate x Base
Rate = Percentage / Base
Base = Percentage / Rate
Solving P (Percentage)
Your house keeps 150 books, 50% of them are science books, 30% are romance books, and
the other 20% are math books.
a. How many books are science books?

b. How many are romance books?
c. How many are math books?
Solving R (Rate)
A quality control inspector of Espesyal Buko Pie discovers that less than 75 of the 500 boxes of
pies produced daily is less than 3 lbs each in weight.
a. What percent of the total daily production is less than 3 lbs each in weight?
b. What percent is greater than or equal to 3lbs each in weight?
Solving B (Base)
In a school, 25% of the teachers teach basic math. If there are 50 basic math teachers how
many teachers are there in the school?
Lecture 2: RATIO
In business, the concept of ratio is important since it helps to express the relationships that exist
between and among many quantities. A number or a quantity derives its significance through its
relationship to another number.
A ratio is a relation between two numbers or quantities expressed as a quotient or fraction.
Guidelines in writing ratios
a. If more than two numbers are being compared, use colons.
b. Although it is not necessary to write the units of measurement, the terms must be converted to
the same units of measurement before writing the ratio.
c. When written using “to” or a colon, the terms must be written as whole numbers.
d. Ratios are written in reduced form.

Example:
Write the appropriate ratios for each of the statements.
a. The building employs 3 janitors, 6 security guards, and 9 house cleaners.
b. For each table sold, the cost is made up of 450.5 Php for labor, 200.75 Php for electricity, and 150
Php as an overhead cost.
1 1
c. The ratio of the lengths is 2 meters to 5 meters
3 4
Ratios are generally used in business in cases of partnership sharing profits and losses.
Assume that Zion, Xian, and Tristan are partners sharing profits and losses in the ratio of 1:2:3,
respectively. If the partnership incurred a net loss of ₱10 000.00 in a month, the share each partner
loses would be:
Zion = 1/6 x ₱10,000.00 = ₱1,667.00
Xian = 2/6 x ₱10,000.00 = ₱3,333.33
Tristan = 3/6 x ₱10,000.00 = ₱5,000.00
Total = 6/6 = ₱10,000.00
Take note: If we add the ratios, we get 6/6 or one, which means 1 whole. It is the total of the shares
if added giving us ₱10,000.00.
There are two ways in finding the ratio:
1. Division
If there are 20 boys and 30 girls, we find the ratio by dividing 20 boys by 30 girls and reduce it to the
lowest terms, that is,
2. Comparing numerators of fractions with the same denominator
If we have a total of 100 T-shirts of 30 small-sized, 50 medium-sized, and 20 large-sized T – shirts,

we have
To get the ratio, we compare the numerators; hence, we say that the ratio of small: medium: large is
30:50:20 or 3:5:2. Adding all numerators should give us the denominator. To check, 30 + 50 + 20 =
100. This is because the total of the parts equals the whole. The notion of ratio is the same as the use
of fractions in business.
Examples:
1. Chrisler and Dinnes are local election candidates. Albert received 2 500 total votes while William
received a total of 3 000 votes. What is the ratio of Albert’s vote against William’s?
2. Aira, Zanthia, and Shakaine are partners. Their capital balances are ₱10000.00. ₱ 20 000.00, and ₱
30 000, respectively. What is their capital ratio?
Lecture 3: RATES
Rates are a special type of ratio that incorporates the dimension of time into the denominator. Like
ratio, we write it in reduced form but in most instances, it is preferable to write as a unit rate.
A unit rate is a rate in which the denominator is 1. To find the unit rate, we simply divide the
numerator by the denominator.
Finding the rate
Example:
A triathlete ran 10 kilometers in 40 minutes in a triathlon race. Find the following:
a. kilometers per minute
b. kilometers per hour
c. meters per minute
Solution:
a. 10 km in 40 minutes
b. Since there are 60 minutes in one hour, 40 minutes in hour is
c. Since there are 1,000 m in 1 km, there are 10,000 m in 10km.
Lecture 4: PROPORTION
PROPORTION – an equation showing two ratios are equal is called proportion.

It can be written in two ways:
Since two ratios are equal, the product of the means is equal to the product of the extremes.
Example:
1. In the proportion 15:35 = x : 70, what is x?
2. One dozen of apples costs ₱240. How much does three (3) dozen cost?

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BUSINESS MATHEMATICS LECTURE NOTE 2

Lecture 1: BASE, RATE, AND PERCENTAGE

Percentage – (portion) represents a part of the base or whole.

Percentage is another way to write fractions with a denominator of 100.

This is usually written in percent, but it may also be a decimal or fraction.

Percentage = Rate x Base

Rate = Percentage / Base

Base = Percentage / Rate

a. How many books are science books?

A ratio is a relation between two numbers or quantities expressed as a quotient or fraction.

Guidelines in writing ratios

a. If more than two numbers are being compared, use colons.

d. Ratios are written in reduced form.

Write the appropriate ratios for each of the statements.

a. The building employs 3 janitors, 6 security guards, and 9 house cleaners.

Zion = 1/6 x ₱10,000.00 = ₱1,667.00

Xian = 2/6 x ₱10,000.00 = ₱3,333.33

Tristan = 3/6 x ₱10,000.00 = ₱5,000.00

Total = 6/6 = ₱10,000.00

There are two ways in finding the ratio:

If we have a total of 100 T-shirts of 30 small-sized, 50 medium-sized, and 20 large-sized T – shirts,

Finding the rate

A triathlete ran 10 kilometers in 40 minutes in a triathlon race. Find the following:

a. kilometers per minute

b. kilometers per hour

c. meters per minute

b. Since there are 60 minutes in one hour, 40 minutes in hour is

c. Since there are 1,000 m in 1 km, there are 10,000 m in 10km.

PROPORTION – an equation showing two ratios are equal is called proportion.

1. In the proportion 15:35 = x : 70, what is x?

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