Business Math For Dummies
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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.

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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:

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Financial formulas

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:

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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.

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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:

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About This Article

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About the book author:

Mary Jane Sterling is the author of four other For Dummies titles: Algebra For Dummies, Algebra II For Dummies, Trigonometry For Dummies, and Math Word Problems For Dummies. She has honed her math-explaining skills during her years of teaching mathematics at all levels: junior high school, high school, and college. She has been teaching at Bradley University, in Peoria, Illinois, for almost 30 of those years.
When not teaching or writing, Mary Jane keeps busy by working with her Kiwanis Club, advising Bradley University’s Circle K Club, and working with members of the Heart of Illinois Aktion Club (for adults with disabilities). All the volunteer projects taken on for these clubs help keep her busy and involved in the community.

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