Tuesday, December 8, 2009

Simple Definition of Business Mathematics And Advantages of Business Mathematics

        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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