2

FACULTY OF MANAGEMENT SCIENCE

DEPARTMENT OF ACCOUNTING

BUSINESS CALCULATIONS I
BUC10B1/EBUC1B1
COMPILED BY : Mr AM Maliwa
OFFICE : AT06
 CHAPTER ONE
BASIC MATHEMATICS
1.1 NUMBER SYSTEM
Numbers are classified into different category which are real and imaginary
numbers.

System Number

Real Numbers Imaginary Numbers

Rational Irrational
Numbers Numbers

Integers

Fractions
1.1.1 Real Numbers
Definition: Real numbers are numbers (or Set of Real Numbers, R ), as the word
suggests, numbers used in the real world or in real situation. Example of such usage is
money, temperature, age etc. Because of such vast usage, real numbers are broken down
into different categories or subsets viz sets of irrational, rational and integers.
Set of Rational Numbers, Q
a
Definition: The set of rational numbers is any number that can be written in the form
b
−2 7
where both a∧b are integers and b ≠ 0. Such numbers are , , 0 , 5 ,−10 , …. Now a set
5 3
of rational numbers can further be broken down to a set of the integers, Z , and the set of
non-integers, Z ' . The set of integers Z={… ,−3 ,−2 ,−1, 0 , 1 ,2 , 3 , … } is a set of
counting numbers. It can be divided into two sets which are a set of natural numbers/
natural whole numbers and set of non-integers.
Set of Irrational, Q '
Definition: The set of irrational numbers is a set where the numbers cannot written in the
a
form . Such numbers are π , e , √ 3 ,etc. Note that these numbers have infinite decimals.
b
22
Note that π ≠ which means π is not rational.
7
1.1.2 Imaginary Numbers
Definition: Imaginary numbers, also known as Complex Numbers, are numbers which
4
are of form a+ bi where i=√ −1. Example is √ −5 , √−100 , etc. It should be noted that
0
is not an imaginary number, it is an undefined number.
1.2 Mathematical Commands and Operations
In mathematics, there are binary operators. These operators are multiplication (×),
addition (+), division,¿) and subtraction (-). Mathematics is basically using these
operations even in advanced topics. We will discuss in this section the basic
mathematical operations.
1.2.1 Basic calculations

Addition
a+ b, where a , b ∈ R
Example:
7+ 9=13
 4.7 +7.9=12.6

Subtraction
a+ b , where a , b ∈ R
Example:
4−3=1
78−91=−13
Multiplication
a × b , where a , b ∈ R
Example:
7∗6=42
0.55 ×2=1.1
Division
a
, where a , b ∈ R
b
0.5
=0.1
5
16
=4
4
1.2.2 Complex Calculations
Example:
Calculate the expression, without the use of a calculator
7+11× 8+ ( 7−6+3 ) ÷ 2−14
Solution:
We must first remember the rule of BODMAS. So we start with the brackets then work
down. 7+11× 8+ ( 7−6+3 ) ÷ 2−14
¿ 7+11× 8+4 ÷2−14
¿ 7+88 +2−14
¿ 83
 CHAPTER TWO
FRACTIONS AND DECIMALS
2.1 FRACTIONS
a
Definition: A fraction is any number that can be written in the form , where a,b≠0∈R
b
For obvious reasons we cannot have a zero denominator. There are different type of ractions, viz
Proper fraction and Improper fraction.
There are different types of fractions VIZ Proper fractions, Improper fractions and mixed
fractions.
Proper Fraction
a
Definition: A proper fraction is any fraction of the form where a< b.
b
What the proper fraction simply means is that you can take a out of b but not more.
1 4 −7
Example: , , etc.
6 7 11
Improper Fraction
a
Definition: An improper fraction is any fraction of the form where a> b.
b
What the improper fraction means is that what is the value is we divide a into b equal parts. That
13
is what the value is if we divide 13 into 2 equal parts which in this case 6.5.
2
Mixed Fraction
b b
Definition: A mixed fraction is any fraction of the form a where a ∈ R and is a proper
c c
fraction. It is mixed because it can be improper then contain a proper fraction after division.
A mixed fraction is converted to an improper fraction in the following way
b a × c+ b
a =
c c
2.1.1 Adding and Subtracting Fractions
When two or more fractions are adding or subtracting, the Lowest Common Denominator is
required (LCD)
LCD LCD
× a+ ×c
a c b d
+ =
b d LCD
The LCD must be divisible by both b and d .
FINDING THE LOWEST COMMON DENOMINATOR
Finding the lowest common denominator can be tricky if one is not careful. Not all the time the
LCD is obtained by multiplication. There are cases where we do not multiply as it does not give
the smallest common denominator. We will focus on the four procedures of finding the LCD
whenever it is required for two fractions.
1. If the denominators are the same, then the LCD is the given denominator i.e.
a c
+ the LCD=b
b b
2. If the denominators are different but have a common factor. We write the denominators
as a fraction, with the bigger being the numerator and the smaller being the denominator,
then we simplify the fraction. After simplification we cross multiply, if they are equal
that is the LCD.
a b
+
4 18

18 9
=
4 2
36=36−LCD

3. If the denominators are different and have a common factor such that the bigger
denominator is divisible by the smaller denominator. The bigger denominator is the LCD.
a b
+
4 16
16
=4
4
LCD=16
4. If the denominators are different and have no common factor.
LCD= product of denominators
 a c
+
b d
LCD=b × d

5 7
Example: Evaluate +
18 20
20 10
=
18 9
180=180−LCD
180 180
×5+ ×7
5 7 18 20 50+63 113
+ = = =
18 20 180 180 180
7 11
Example: −
15 60
60
=4
15
LCD=60
7 11 7 × 4−1 ×11 28−11 17
− = = =
15 60 60 60 60
2.1.2 Multiplication
If four numbers a , b , c and d are integers then
a d a×d
× =
b c b ×c
It must noted that there is no LCD for multiplication.
1 3 1× 3 3
× = =
7 14 7 × 14 98
2.1.3 Division
a d a c
If four numbers a , b , c∧d ∈ N then ÷ = ×
b c b d
1 3 1 4 1× 4 1 ×2 2
÷ = × = = =
2 4 2 3 2 ×3 3 3

Example : 2 ÷ [( )
8
3
÷ 4 +3 ×7 ÷
7
2 ]
The first thing we should consider always is BODMAS (Brackets of Division, Multiplication,
Addition and Subtraction). Always consider the Bracket first, then division then multiplication,

addition and subtraction will follow. The Brackets we see first is

8
3
7
[( )
÷ 4 +3 ×7 ÷ but inside
2 ]
this bracket is another bracket ( 83 ÷ 4) so we start with this bracket first then work BODMAS
from inside-out.

2÷
[( )
8 1 2
× +3 ×7 ÷ =2÷
3 4 7
2 ×1
3
+ 3× 7 ÷
] [
7
2 ]
¿2÷
[ 2
3
7
]
+3 ×7 ÷ then we go for division
2

¿2÷
[ 2
3
+3 ×7 ×
2
7 ]
¿2÷
[ 2
3
+3 ×2
]
¿2÷
[ ] 2
3
+6

¿2÷
[ 2+6 × 3
3 ]
¿2÷
[ 2+18
3 ]
20
¿2÷
3
3
¿2×
20
3 3
¿1× =
10 10

2.2DECIMALS
Definition: A decimal number is any number of the form a . b1 b2 b3 b 4 … where
a ∈ {± 1 ,± 2 ,± 3 , ± 4 , ± 5 ,± 6 , ± 7 , ±8 , ± 9 } and b 1 , b2 , b3 , b4 , … . ∈{0 ,1 , 2 ,3 , 4 , 5 ,6 ,7 , 8 , 9 } ie
decimals can only take one digit not more.
Decimal numbers can be written as fractions and/or irrational numbers. We focus on both in this
course.
2.2.1 Converting decimals to fractions and fractions to decimals
From Fraction to Decimal
All fractions can be converted to decimals but not all decimals can be converted to
13
fractions. Let us take a fraction like with interest of converting it to a decimal.
4
The first question we ask ourselves is how many times does the denominator ‘4’ in this
case go to the denominator ‘13’ in this case? We find 4 goes 3 times to 13 and we write a
decimal point then 4 leaves a remainder of 1 which we multiply by 10 to have 1 ×10=10
then we ask ourselves, how many times does 4 go to 10? We find that it goes 2 times and
we write 2 as the decimal (after the decimal point). Then 4 leaves a remainder of 2 which
too is multiplied by 10 to have 2 ×10=20. We again ask ourselves, how many times 4
goes to 20 which goes 5 times and leaves no remainder. We stop since there is no
remainder left after 20. We then have the value below.
20

1310
=3.25
4
This can be done for any fraction.
Prove whether or not the following decimals from fractions given are true or not.
1
 =0.5
2
1
 =0.5
5
11
 =1.571438571
7
From Decimal to Fraction
We can also convert some decimals to fractions. Let us take a number like0.625 . What is
required here is writing the decimal number as it is without the decimal point then divide
by 10 powered by number of decimals
625 625 5 ×625 5
0.625= 3 = = =
10 1000 8 ×125 8
From the example above we notice that writing 0.625 without the decimal point is
0625=625. We divide by 10 with exponent 3 since there are 3 decimals viz6 , 2 ,5 .
There are decimals which are infinite in decimals, that is, have infinite number of
decimals like √ 5 , π , etc . There are also decimals which are infinite in order but repetitive
in their nature like 0.33333333 … , 1.5656565656 … ,−33.856485648564 … , etc. These
decimals follow a more deferent approach.
Assume we had a more general decimal 0. a where a ∈ Z +¿. ¿ We convert it using the
formula:
a
0. a= number of digitsof a
10 −1
We must note that the formula requires the following
 The number before the decimal point be zero (‘0’)
  The recurring or repeating number/decimal must just after the decimal point.
No number must precede the decimal
 The numbers 10 and 1 are in the formula and never change.
 The number of digits of a number a is very important to understand
Let us take two different numbers 0. 3∧0.51. The first number is
3 3 3 1
0. 3= 1 = = =
10 −1 10−1 9 3
Let us NOTE that the number of digits of 3 is 1 and 3 and 9 have a common factor 3 to
1
simplify to .
3
The second number is 0. 51 which is converted as
51 51 51 17
0. 51= 2 − = =
10 −1 100−1 99 33
The number of digits of 51 is 2 namely 5 and 1 and the common factor between 51 and 99
is 3 leaving 17 on numerator and 33 on the denominator.
When a number has a nonzero digit before the decimal point, we must first separate the
recurring from the non-recurring then work on the recurring.

Example: Evaluate the number

2. 5=2+0. 5
5 5
¿ 2+ =2+
1
10 −1 9
2× 9+5 23
¿ =
9 9

2.2.2 Rounding Off and Truncation

Decimals can go for a large number of decimals while we might just be interested in a
number of decimals. This leads to us eliminating some decimals and left with a few
decimals either by removing the decimals (truncating) or rounding off.

Truncating Decimals
When we truncate, we simply remove the decimals of concern. An example would be
truncating 1.6667895 to 4 decimal place.
1.6667895 ≈ 1.6667
As we see, we simply removed decimals from the 5th decimal onwards.
−2.9999999999999999 truncate to 3 decimal place is −2.999

Rounding Off
 When we round off, each decimal affects its preceding decimal. This requires that we
start from most right value if the decimals are finite (not infinite). The process is the
following
 Take the most right-sided value
 If the value is 5 and above we truncate that value and add 1 to the preceding
value, if it is 4 and below we truncate that value and go to the preceding value.
 We go back to the first step
 We continue to do that until the required number of decimals is achieved.
Example: Round Off to 3 decimal places
5.3684236
 The most right-sided value is the last value 6
 Since 6 is above 5, we truncate 6 and 1 to the preceding value 3 which makes 4
which we truncate because it is less than 5.
 We will do this until the third decimal is achieved which leads to
5.3684236 ≈ 5.368
2.2.3 Scientific Notation
Any decimal number can be written in scientific notation. A scientific notation is a
decimal notation of the form a × 10n where a is any real number.
It should be noted that a number is traditionally written as a scientific notation if a has
one digit before the decimal point. The decimal point has an unrestricted number of
decimals. Rounding off is usually practiced in scientific notation.
Example: Convert the numbers 42633.78233 and 0.06354875 to scientific notation
4
42633.78233=4.263378233× 10
and
−2
0.06354875=6.354875 ×10

We note that if the numbers are going inside the decimal point then n is positive and if
the numbers are going outside the decimal point then n is negative.
Example: Convert and round off to 4 decimal places the number below
−6
845626.4462173 ×10
The number might look like it is in scientific notation but because before decimal point
there is more than one digit we must change that part in order to convert to scientific
notation.
−6 5 −6
845626.4462173 ×10 ≈ 8.4563× 10 × 10
−1
¿ 8.4563 ×10

Example: Evaluate the 1. 6 ÷ ([ 45 × 83 )+2.2÷ ( 72 + 109 )] ×(0. 77+0.77)

Solution:

1. 6 ÷
[( ) ( )]
4 8
5 3
7 9
× +2.2÷ +
2 10
×(0. 77+0.77)
¿ ( 1+0. 6 ) ÷+ ÷
15 10 [ (
32 22 7 × 5+1× 9
10 )] (
×
) 77
2
77
+ 2
10 −1 10

(
¿ 1+ 1
6
10 −1 )[
÷
32 11 44
+ ÷
15 5 10 ]( )
×
77 77
+
99 100

( )[
2
¿ 1+ ×
3
32 11 22
+ ÷
15 5 5]( )
× +
7 77
9 100
¿ (
1 ×3+1 ×2
3 )[
×
32 11 5 1
+ ×
15 5 22 ](
× )
7 ×100+ 9 ×77
900

3 15 2 [ ] = ×
900 3 [
5 32 1 1393 5 64 +15 1393
¿ × + ×
30 ]×
900
5 79 1393 1 79 1393 110047
¿ × × = × × =
3 30 900 3 6 900 16200
 CHAPTER THREE
PERCENTAGES
Percentages are the most commonly used numbers or decimals in almost every field.

Definition: A Percentage is any number which is less than or equal to 1 and positive.
Percentages can be converted to fractions or decimals. Their most important use of
percentages is converting any number to a percent.

Converting a number to a percentage

The theory behind converting a number is that we want to know how much portion or
how many pieces does a certain number have against a bigger number it is taken from if
we were to divide the bigger number to a 100 pieces.

Example: What is the percentage of 650 from 1000.

Answer: We should note that we said a percentage should be a positive decimal smaller
than 1. Then it means that 1000 should be the denominator else the number will be
greater than one.
650
is what we are looking for.
1000
But since we want to divide the number to 100 equal parts we must multiply it by 100.
650
Then therefore ×100=65 %
1000
This means that, if we were to divide a 1000 to 100 equal parts, 65 out of 100 would
belong to 650. Another interpretation can be that 650 constitutes 65 out 100 if we divide
1000 to 100 equal parts. There is no given single interpretation of a percentage so a
person must understand what a percentage and what it represents to interpret the answer.

Example: Convert 34 out of 67 to a percentage

34
Answer: × 100=50.74626865671642 %
67

Therefore 34 constitutes around 50.74626865671642 % of 67 if we divide 67 to 100

equal parts.

Converting a percentage to number.

It is important to note that not all the we will be converting to percentages, sometimes we
might want to know what a certain number will be if we know the percentage. An
example would be, we might know that university fees will increase by 10% and
interested in knowing what the amount is given the percentage.

Example :
what is 25% of 60

Answer:
now it is important to note again that we divide a number to 100 equal parts. So when
converting a percentage to a number we do the opposite, i.e. we divide by 100.
25
25 %=
100
25
Now we to know 25 % of 60= × 60=15
100
Therefore 15 holds 25 % of 60

Example :
The department of education has taken a decision to decrease salaries by 5.5% from a
monthly salary of R20817. How much salary will be earned?

Answer:
5.5
Deducted amount = 5.5 % of 20817= × 20817=1144.94
100
Salary=20817−1144.94=19672.06

Converting a percentage to Fraction

Example : Convert the following to a fraction

1. 4 %
2. 0.03%
3. 0.17 × 10−5 %
1
4. % +12 %
3

Answer:
4 1
1. 4 %= =
100 25
2. 0.03 %=
0.03
100
=
3
100( )
÷ 100=
3
×
1
=
3
100 100 10000

( )
−5
0.17 ×10 17 1 17 1 17
3. = × 5 ÷ 100= × =
100 100 10 10000000 100 1000000000
 1 1 12 1 3 1+36 37
4. % +12 %= ÷100+ = + = =
3 3 100 300 25 300 300
APPLICATIONS OF PERCENTAGES

Selling and cost price applications

Tax and VAT

 CHAPTER FOUR
RATIOS AND PROPRTIONS
Ratios are numbers which are used to divide a whole according to equal or unequal percentages.