Business Math For Dummies
Math is an important part of managing business. Get to know some commonly used fractions and their decimal equivalents, area and perimeter formulas, angle measurements, and financial formulas — including understanding interest rates and common financial acronyms — to help with your business tasks.
Common Fraction and Decimal Equivalents in Business Math
Fractions and decimals form the basis of much of the math in business. The following table shows you some of the more commonly used fractions and their decimal equivalents. An ellipsis (three dots) after a number means that the digit goes on forever.
Earning Money through Interest
You can track how long it takes to double your investment if you deposit money at a specific interest rate. For interest rates that fall between the rates in the chart, remember that the time will fall in between also.
|Interest Rate Compounded Quarterly||Amount of Time Needed to Double|
|2%||ª 34.7 years|
|3%||ª 23.2 years|
|4%||ª 17.4 years|
|5%||ª 13.9 years|
|6%||ª 11.6 years|
|7%||ª 10.0 years|
|8%||ª 8.8 years|
|9%||ª 7.8 years|
|10%||ª 7.0 years|
|11%||ª 6.4 years|
|12%||ª 5.9 years|
|13%||ª 5.4 years|
|14%||ª 5.0 years|
|15%||ª 4.7 years|
Common Area and Perimeter Formulas
You may need to find out the size of an office space, perimeters of buildings, and tracts of land for your business. Keep these frequently used formulas handy for your business math needs:
Formulas are an important part of business. A formula qualifies as such when it consistently gives you correct results and answers to questions thus providing organization and structure. The most common financial formulas that you need are:
Common Business and Financial Acronyms
The business world is packed with terms and acronyms. Take a look through the following list, learn the terms, and you’ll be speaking like a financial pro in no time.
Important Angle Measures in Degrees
When you’re figuring out things like lot lines or fencing for your business, you’re working with angles. These figures are the more commonly used angle measures and can help you estimate angles for your business tasks: