Business mathematics may be define different mathematical formulas or mathematical steps which are taken for development in business . Large number of business theories which is used to solve business problems are included in business mathematics .
Explanation of Definition of Business Mathematics
From this simple definition , we find that business mathematics is nothing more than different formulas and theories like interest rate , annuity rate , matrix theory , linear programming theory and probability theory and many more . With these formulas and theories business can calculate many solutions of different problems .
Advantages of Business Mathematics
- With interest rate of maths , businessman can calculate the interest on debt , loan or bonds .
- With matrix , businessman can calculate salary bill of different department and branches .
- With Linear programming , business can determine the quantity of two products at which profit is maximize or cost is minimize .
- With discounting and factoring technique businessman can calculate present value of bill , rat of discounting the bill and banker's gain
- With currency translation formula of maths , businessman can cost of currency between two countries .
- With Assignment solution technique businessman can solve transportation problems.
- Large number of business estimations are done on the basis of probability theory of business mathematics .
- Market research bureau can use consistency data theory of business mathematics for calculating estimating profit , capital and sale of business .
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