Mathematics is used in most aspects of daily life.

Many of the top jobs such as business consultants, computer consultants, company directors and a host of others require a solid understanding of basic mathematics.

It also play important role in business, like Business mathematics by commercial enterprises to record and manage business operations. Mathematics typically used in commerce includes elementary arithmetic, such as fractions, decimals, and percentages, elementary algebra, statistics and probability.

Business management can be made more effective in some cases by use of more advanced mathematics such as calculus, matrix algebra and linear programming. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis.

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LOGARITHM
Advanced tools to optimization and planning in economic system.

Logarithms are simply the powers or the indices to a given base. It is the clever method of reducing long multiplications into much simpler additions and reduction divisions into subtraction

The earliest records of mathematics show it arising in response to particular needs in business and industries. It is the applications of advanced tools to optimization and planning in.

Logarithm plays an important role of

business mathematics and decision analysis. So, now describing logarithm as a tool in business planning and decision making.

Practical implementation in business decisional works

Calculating due date, interest, and maturity value of simple interest when the loan is for monthly, daily or yearly for a business. Computing compound interest and resulting compound amount at the maturity date for saving and investment Calculating salary, commission and annuity Calculating the outstanding amount for installment purchase

 Business firm must calculate its depreciation to know the actual financial condition of that particular firm by using logarithm. Budgetary planning is the most important planning. Without knowing cost of salary, machinery cost, depreciation cost budget cant be prepared Calculating the amount of sinking fund, pension, annuity, retain earning, compound interest, accumulation are easier and accurate with logarithm.

MATHEMATICAL APPLICATION

An example is given below to show it that how important logarithm is and what role it plays in proper planning and decision making:-

A limited company at which intends to create a depreciation fund to replace at the end of the 25th year assets costing taka 100000. The amount to be retained out of profits every year if the interest rate is 3% is to be calculated.

 Solution :Here, m= a/I {(1+i)^n -1)} m=100000, i =0.03, n =25 Where, 100000= a/0.03{(1+0.03)^25 -1)} =a/0.03{(1.03)^25-1} =a/0.03(20.089-1) =a/0.03*1.089
A=100000*0.03/1.089 =27755 (Ans) X=(1.03)^25 log x=25 log (1.03) =25*0.01288 =0.3200 X =antilog (0.3200) X=2.089

Hence, the amount to be retained is Tk.27755.

PERMUTATION
In mathematics, the notion of permutation is used with several slightly different meanings, all related to the act of permuting (rearranging) objects or values.

A permutation of a set of objects is an arrangement of those objects into a particular order.

The number of permutations of n distinct objects is n (n 1) (n 2)...21, which number is called "n factorial" and written "n!".

Permutation Formula
A formula for the number of possible permutations of r objects from a set of n. This is usually written nPr Formula: nPr = n!/(n-r) p=number of permutation n=number of items r= number of items in each permutation

MATHEMATICAL IMPLEMENTATION
EXAMPLE: Indicate how many 4 digit numbers greater than 7000 can be from the digits 3, 5,7,8,9 Solution: If the digits are to be greater than 7000 then the first digit can be only one of the 7, 8 and 9. Now, the first digit can be chosen in 3 ways and the remaining three can be any of the 4 digits left, which can be chosen in 4p3 ways Therefore the total number of ways =3 x 4P3 = 3 x 4 x3 x2 = 72 ways.

APPLICABILITY IN ECONOMICAL WORKS

The Allocation of Country Telephone Codes The allocation of country telephone code must be in specific order. The emphasis on this allocation is in the word order. For this reason, this implies the principle of permutation in mathematics.

The Allocation of City/Area Codes Telephone area codes of all countries in the world are usually assigned by the countrys Ministry of Telecommunications. Usually, these digits are 3, selected from the decimal number system, 0.9.

In applied statistics The use of permutation methods in applied statistics is becoming increasingly widespread. Permutation methods are employed for three reasons: 1. They provide exact significance levels rather than approximation 2. Their significance levels are distribution free. 3. They yield more powerful statistics.

COMBINATION
In mathematics combinations is a way of selecting several things out of a large group, where order does not matter. However, repetition in each combination is not allowed except otherwise stated. Thus, the combination of 3 objects taken all at a time.

FORMULA ANALYSIS
The mathematical formula for finding out different combinations requires a slight analysis than the formula used for permutation. ncr = n!/ {(n-r)! r! }

MATHEMATICAL IMPLICATION
EXAMPLE: If a manager of a shop of a readymade garments wants to display 4 combinations out of the total 6 colors of ladies suits received in his store he can display in the following ways:

Solution:
According to the rule, 6c4 = 6!/ {(6-4)!*4!} =(6*5*4*3*2*1)/ {(2*1) (4*3*2*1)} =15 Therefore, the manager can display his products in total 15 ways.

Mathematics for Finance

Use of mathematical formulae or models in business finance or financial decision is Mathematics for finance. The financial decision making is based on the core concepts of interest ,present value, annuities, creation of sinking funds etc

SIMPLE INTEREST: The amount earned only on the original initial principal amount invested is called simple interest. Formulae: Interest I=Principal/Amount , A = P(1+rn)

Implementation on business:
A company wants to buy a land.If the person borrowed Tk.4000000 at 10% interest for 4 years, find the simple interest after 4 years. Solution: Given that, P=4000000 r=10% n=4 Using the formula of interest, (I)=Pxrxn =4000000x(10/100)x4 =TK.1600000

Compound interest:
Interest earned on both the initial principal and the interest re-invested from the prior periods is compound interest. Formula: Interest (I) = P{(1+r)^n-1}

Implementation on business: A company invested TK. 50000 for 4 years at 12 % rate of interest. What will be the compound rate of interest after 4 years if the interest is paid yearly.

Solution:
Given that, P=50000, r=12%, n=4 Interest (I)= 500000{(1+r)^n-1} =Tk.28676

SINGKING FUND

Its a fund or account into which a person or company deposits money on a regular basis in order to repay some debt or liability of future. A corporation might establish a sinking fund in order to accumulate sufficient capital to replace obsolete equipment. For long term corporate bodies each years sinking fund budget needs to allocate funding in accordance with long term plan.

Formula modification

Money deposited annually in order to accumulate by its termination time, the capital amount needs to cover the anticipated expenditure. The formula is as follows: A=F*r/[(1+r)n-1]*1 Here, A= Annual amount. F=Future value of the sinking fund. r= Interest rate earned each period. n= Number of periods over the annual amount A is deposited.

Mathematical implementation
Example: Lets consider that a companys major capital expenditure of TK.100000 is anticipated in 10 years. What amount the company needs to deposit in the next 10 years to fund such expenditure if annual interest rate can be earned 5%?

Solution: We estimate this by using the formula where F=100000, r=5% and n=10 Putting the values according to the formula: A=100000*0.05/[(1+0.05)10-1] =TK.7950 Hence, the amount needed to be deposited annually by the company is TK.7950.

Applicability of sinking fund

The opportunity costs of the sinking fund requirement may be the inability to secure long term debt. The accumulation of funds in a special account also provides the issuer with security against future business conditions that may be detrimental to its ability.

The insurance provide by a sinking fund decreases the interest rates, therefore the expenses. The issuer can book capital gains on debt retirement if it purchases bonds in the open market below book value.

LINEAR EQUATION
The practical use of linear equation is in evolving certain relations and finding out the value of the unknown. The concept was first invented by the Russian Mathematician L.V. Kantorovich and developed later by George B. Dantzig A system of simultaneous equations is helpful for finding unique values for unknowns, where the equations should be equal to the number of unknowns.

IMPLEMENTATION OF LINEAR EQUATION IN BUSINESS DECISION

The main theme of theory is to optimize the use of scarce resources which include machine, manpower, ware-house, raw- materials etc.

There are several theoretical tools to accomplish this purpose but those are not adequate for treating a complex economic problem.

For tackling such problems that are used for linear programming has been found to be most useful.

SYSTEM OF LINEAR EQUATION

LINEAR EQUATION

IN-CONSISTENT

CONSISTENT

GRAPHICAL SOLUTION

There can be graphical solutions as well as algebraic solutions of equations. The former courses of graphical solution were not prcised but easy to use in some cases. The equations are consistent but dependent.

QUADRATIC EQUATION
An equation having the highest index as 2 is called the quadratic equation. For example: x2+5x+6=0 The general form of quadratic equation is ax2+bx=0.But another form of this equation is {-b(b2-4ac)}/2a It is an equation which when reduced to the rational integral form contains the square of the unknown quantity.

MATHEMATICAL ANALYSIS

Demand for goods of an industry is given by the equation pq=100, where p is the price and q is its quantity, supply is given by the equation 20+3p.We need to count the equilibrium price and quantity

Solution: The demand equation is pq=100 and----(1) supply equation is 20+3p=q------------(2) Substituting the value of q from (2) in (1), we get P(20+3p)=100 3p2+20p-100=0 P = -20(400+1200) Hence, the equilibrium price (p) =10/3 , Quantity exchanged (q) =30 (ans)

QUADRATIC EQUATION IN BUSINESS PLANNING AND = -10, DECISION MAKING

But p= 0, therefore p=10/3 From(2), we have q=20+3.(10/3)

It indicates the relationship between quantity of goods and costs. Indicates the relationship between order and spending Indicates relation between investment and income. Sometimes complicated verbal statement when translated in equation or inequalities can be solved with great ease.

Set theory
Applicability of set theory in making surveys regarding decision making

A SET IS A COLLECTION OF WELL-DEFINED AND WELL DISTINGUISHED OBJECTS. THE SETS IS OF MUCH WIDER APPLICATION, ESPECIALLY THEY HELP IN PREPARING THE PROGRAMME FOR FEEDING IN TO THE MACHINE.

Applying set theory

In sets we deal with a group of objects which can be defined in terms of their distinctive feature, magnitudes etc. It is possible to tell whether a given object belongs to a set or not. The basic feature of a set is that it is well defined and well-distinguished for easy recognition.

In the view of the previous mentioned topics, each of the respective parts discussed played a vital role in dealing with business decision. Their impacts are mentioned viz: The compound interest, rate of interest, salary, commission, depreciation etc are being calculated easily with the help of log. Permutation helps in allocating utility expenses as well calculating all relates expenses. Combination is the process of maintaining a selective order while a company has a choice among a huge amount of choices. Decisional works are incomplete without the effect of financial mathematics. It mainly decides the best type of investment field.

 Another part of the financial math is the sinking fund which declares itself the safest way of investment and as a decision. The role of equations in decisional works is indescribable. The linear equation commits to evolving certain relations and finding out the value of the unknown. The quadratic equation plays a vital role in calculating the relation between the demand, supply and quantity of product of a company. In sets we deal with a group of objects and find out relation between elements and within the given conditions. In the perspective of the above mentioned topics decisions regarding the success of the business we can consider them and their prescribed rules needs to be followed thoroughly.