Business Mathematics

Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: ABM-11
Email: [email protected]; Website: www.uc-bcf.edu.ph

MODULE 1 – Business Math Subject Teacher:

FUNDAMENTAL OPERATIONS ON FRACTIONS, DECIMALS, AND PERCENTAGE

Learning Objectives:
At the end of the modules, the student should be able to:
a. Identify the fundamental operations needed on fractions, decimals and percentages
b. Solve word problems on fractions, decimals, and percentages

INTRODUCTION TO BUSINESS MATHEMATICS

BUSINESS MATH
A branch of business where mathematical tools and/or techniques are applied to aid the effective
and critical analysis of problems in the business.

AS APPLIED IN VARIOUS AREAS IN BUSINESS

1. Financial Accounting
2. Management Accounting Services
3. Economics
4. Marketing
5. Financial Management
6. Taxation

SCOPE OF BUSINESS MATH

I. FUNDAMENTAL OPERATIONS ON FRACTIONS, DECIMALS, AND PERCENTAGE

II. RATIO AND PROPORTION
III. BUYING AND SELLING
A. Mark on, markup, and markdown
B. Kinds of discounts
C. Breakeven Analysis
IV. COMMISSIONS
V. SALARIES AND WAGES
A. Sources of Income
B. Presidential Decree 442 (Labor Code of the Philippines)
C. Income Taxation for Employees
D. Payroll
VI. USE OF COMPUTERIZED PRESENTATIONS

FUNDAMENTAL OPERATIONS ON FRACTIONS, DECIMALS, AND PERCENTAGE

A. FRACTIONS
- A numerical figure that is not a whole number
- It represents a part of a whole

Parts of a fraction:
A fraction has four parts namely:
a) Fraction bar- the horizontal line that separates the numerator and denominator of fractions.
b) Whole number-a number written before the fraction and is only present in a mixed number. It
represents a whole part.
c) Numerator- is the number placed on the top of the fraction bar representing the number of
parts taken from the whole number.
d) Denominator- the number below the fraction bar to represent the total number of equal parts
the whole number is subdivided into.

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To further understand fraction, let us make use of the sample fraction below:

3
2 cakes
4

In this fraction, the parts are as follows:

2 =whole number
3 =numerator
4 =denominator
- =fraction bar

This fraction has a whole number which means that the fraction represents a number greater than
one. In this example, the whole number is two which states that there are two whole cakes. In
addition to the two cakes, there is another cake equally divided into four (the denominator).
However, only three (the numerator) equal parts of the said cake is left. Hence, there are two whole
cakes and a 3/4 parts cake.

2 5
More Examples: ½; ; ¼; ; 1 ¼
3 3

Kinds of Fractions
Fractions are subdivided into the following kinds:
1. Proper Fractions (e.g., ½)- This kind of fraction represents a number lower than one. The
numerator of a proper fraction is always less than the denominator. Proper fractions do not
have whole numbers.
2. Improper Fractions (e.g., 5/4)- Improper fractions represent a number greater than 1 though it
does not have a whole number. Improper fractions always have higher numerator than the
denominator, which is the opposite of proper fractions. Improper fractions become mixed
number should they be converted into whole numbers since it is greater than 1. Same with the
proper fractions, improper fractions do not have whole numbers.
3. Mixed Numbers/ Fraction (e.g., 1 ¼)-Mixed fractions are fractions with whole numbers. If
converted, mixed numbers become improper fractions.

Conversion of fractions
In performing the fundamental operations on fractions, there is a need to understand how to convert
improper and mixed numbers.

 Improper Fractions to Mixed Numbers

To convert an improper fraction to a mixed number, simply divide the numerator with the
denominator.

5
Example:
4

=4√5 Therefore, the mixed number derived is 1 ¼.

1 whole number
=4√5 𝑑𝑒𝑛𝑜𝑚𝑖𝑛𝑎𝑡𝑜𝑟
-4
1 numerator

 Mixed Numbers to Proper Fractions

To convert mixed number to improper fractions, multiply the denominator to the whole number
then add the product to the numerator. The sum derived is the new numerator for the improper
fraction. The new denominator is the same with the old denominator of the mixed number.

Example: 2 ¼

=2 ¼ 4 (denominator) x2 (whole number)

=2 ¼ 8 (product of 4x2) + 1 (numerator)

=2 ¼ 9 (product +numerator)

=9 (new numerator)
4 (copied denominator) Page 2 of 6
ADDITION and SUBTRACTION OF FRACTIONS

 Similar Fractions- similar fractions are fractions with same denominator.

- To add similar fractions, simply add the numerators then copy the denominator
- To subtract similar fractions, simply deduct the latter numerator from the first numerator then
copy the denominator
𝑎 𝑐 𝑎+𝑐
Rule: +𝑏=
𝑏 𝑏
𝑎 𝑐 𝑎−𝑐
- =
𝑏 𝑏 𝑏

*Note: Always write your answers in its simplest form.

Examples:
1. 1/4 + 2/4 = 3/4
2. 1/2 + 1/2 =2/2 =1
3. 3/4 – 2/4 =1/4
4. 7/8 – 6/8 + 1/8 =2/8 =1/4

 Dissimilar Fractions
- To add or deduct dissimilar fractions, follow the following steps:
 Find the lowest multiple of the two denominators called least common denominator
(LCD). LCD is the lowest whole number that you may use in dividing the denominators
of the dissimilar fractions. The LCD computed will be the new denominator for all the
fractions.
 Rewrite the original equation into similar fractions by dividing the LCD by the original
denominator of each fraction. Then, the answer is to be multiplied with the respective
old numerators. The product of this multiplication is the new numerator for each
respective fraction.
 Add or deduct the similar fractions.

𝑎 𝑐 𝑎(𝑛1)+𝑐(𝑛2)
Rule: + =
𝑏 𝑑 𝐿𝐶𝐷
Where:
n1= LCD/b;
n2=LCD/d

𝟏 𝟑
Example #1: +
𝟏𝟐 𝟖
*Look for the LCD of 12 and 8. In this problem, it is 96.
*= 1 + 3 * 8 + 12 *20 simplify = *44÷4 = 11
12 8 96 96 96 96÷4 24

Example #2: 2/3 – 2/7

*Look for the LCD of 3 and 7. In this case, it is 21.
*=2 - 2 * 14 - 6 *8
3 7 21 21 21

Example #3: 3/4 – 1/3 + 1/5

*= 3 - 1 + 1 * 45 - 20 +12 *37
4 3 5 60 60 60 60

 Mixed Numbers
In adding mixed numbers, convert the mixed number into improper fraction and perform the
addition/subtraction using the rules in adding/deducting improper fractions. Another possible
method is to add/subtract the whole numbers and add/subtract the fractions separately before
putting them together.

Example #1: 1 ½ + 1 ½
Method 1: Convert first the mixed numbers into improper fraction before performing the
addition/subtraction.
*1 ½ + 1 ½ = 3/2 + 3/2 = 6/2 Simplify= 3
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 Method 2: Add/subtract the whole number and fractions separately.
*1 ½ + 1 ½ = 1 +1 (whole numbers) ; ½ + ½ (fractions)
* = 2 (whole number) ; 2/2 fractions
* = 2 2/2; then simplify
* =3
Example #2: 1 6/8method
Note: Whichever you use, the answers should be the
– 5/8 + 1/4
Method 1: Convert first the mixed numbers into improper fraction before
performing the addition/subtraction.
*=1 6/8 – 5/8 + ¼
*=14/8 - 5/8 + ¼
*after converting the mixed number to improper numbers, perform the
operations required
=14/8 -5/8+2/8
*=11/8

Should you use method two, the answer should still be the same.

MULTIPLICATION and DIVISION OF FRACTIONS

Rule in multiplying: Numerator by numerator; denominator by denominator
𝑎 𝑐 𝑎𝑐
=𝑏x𝑑 = 𝑏𝑑

TIP: Convert all mixed numbers to improper fractions before multiplying.

Examples:
1 2 2 𝟏
1. x = =
4 3 12 𝟔

2 3 7 9 63 𝟐𝟏
2. 1 x 1 = x = =
5 6 5 6 30 𝟏𝟎

6 3 14 3 42 2 𝟐𝟏
3. 1 x = x = ÷ =
8 4 8 4 32 2 𝟏𝟔

𝑎 𝑐 𝑎𝑑
Rule in dividing: ÷ =
𝑏 𝑑 𝑏𝑐

TIP: get the reciprocal of the divisor, then proceed to multiplication. In the event that there is a mixed
number, convert it first to improper fraction.

1 𝟐 1 𝟑 𝟑
1. ÷ = x =
4 𝟑 4 𝟐 𝟖

1 1 5 𝟏 𝟓 1 𝟓
2. 2 ÷ = ÷ = x =
2 8 2 𝟖 𝟐 8 𝟏𝟔

B. PERCENTAGE
- A number expressed as a fraction of 100.
- Derived from the Latin phrase per centum- figured or expressed on the basis of a rate or
proportion per hundred.
Examples:

1. 1/100 = 1%
2. 20/100 = 20%
3. 8/10 = 80%

Convert Fractions to Percentage

TIP: Perform the basic mathematical operation of division, then multiply the quotient by 100 to get the
rate.

1. 2/5 = .40 x 100 = 40%

2. 6/7 = .86 x 100 = 86%
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Rate - Facilitates assignment of a measurement or quantity against some other quantity or measure.
Rate of increase/ decrease
𝑞2−𝑞1
% increase/ decrease =
𝑞1
Where: q2= new value; q1= original value

C. DECIMALS
- These are fractions where denominators are expressed as positive powers of ten. (decimal fractions)
- Numbers which uses the base of ten to extend the number system to include digits with place
values that are negative powers of ten. (decimal digits)
- Whole numbers and decimal digits shall be separated by a decimal point.

IMPORTANCE: In the actual conduct of trade or business, monetary values are not expressed in terms
of pesos.
Here in the Philippines, we use pesos and centavos in their decimal forms for convenience sake.
Thus, instead of writing 800 pesos and ¼ centavos, we write: P 800.25.

Application of fractions, percentages, decimals, and rates in word problems

1. A 12-meter log will be divided into 8 equal pieces of woods. How long shall a piece of wood be
measured?
Answer:
12 𝑚 4 𝟑 𝟑
=12 meter log ÷ 8; = ÷ = 𝒎; Therefore, there will be 𝑚 of each piece of wood.
8 4 𝟐 𝟐

2. In the testamentary will of Don Potenciano, the 100 square meter of land shall be divided among
his three children: Anna= ¼ ; Bitoy= 3/6; Chinita= 2/8. Determine the share of each from the total
piece of land.

In this word problem, the 100 square meters of land is to be distributed to the three children. Hence,
the equation is to be written as:
100𝑚2
For Anna : 100 m2 x ¼ = = 𝟐𝟓 𝒔𝒒𝒖𝒂𝒓𝒆 𝒎𝒆𝒕𝒆𝒓𝒔 𝒐𝒇 𝒍𝒂𝒏𝒅
4

3 300𝑚2 6
For Bitoy: 100m2 x = ÷ = 𝟓𝟎 𝒔𝒒𝒖𝒂𝒓𝒆 𝒎𝒆𝒕𝒆𝒓𝒔 𝒐𝒇 𝒍𝒂𝒏𝒅
6 6 6

2 200𝑚2 4
For Chinita: 100m2 x = ÷ = 𝟐𝟓 𝒔𝒒𝒖𝒂𝒓𝒆 𝒎𝒆𝒕𝒆𝒓𝒔 𝒐𝒇 𝒍𝒂𝒏𝒅
8 8 4

Anna, Bitoy, and Chinita will inherit 25, 50, 25 square meters of land respectively.

3. After an hour, the inlet pipe can fill 1/6 of the tank, and the outlet pipe can drain 1/8 of the water
in the tank. Suppose it takes x hours to fill the tank if both pipes are open, how many hours shall it
take to fill the tank if both outlet and inlet pipes are open?

The equation is to be written as:

1 1
X number of hours = -
6 8

8 6 2
X= - X= X= 24 hours
48 48 48
It takes 24 hours to fill the tank.

4. According to the available data gathered by the Philippine Statics Authority, the population in
the Philippines a decade ago is 78 Million. For the current year, the population has reached 120
Million. Determine the growth rate of the population in the Philippines.
𝑞2−𝑞1
% of increase/ decrease =( ) x 100
𝑞1
Where: q2= new value; q1= original value

Solution:
% of increase/decrease= [(120 million-78 million) ÷ 78 million] x 100
% of increase/decrease= .5384 x 100
% of increase/decrease= 53.84 % increase
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 There is an increase of 53.84% in the Philippine population compared to a decade ago.

*positive value is an increase and a negative value represents decrease

Note that the required is rate of change. Hence, the answer should be stated in percentage.

5. A house was sold for 250% of what the original owners paid for it. If the house was sold for P 2.4
Million, what was the original price paid for the house?
Given:
Original/ Initial Price X
Mark-up rate 250%
New selling price ₱2,400,000

Solution:
X=new selling price÷ new selling price rate
X= ₱2,400,000 /250%
X= ₱960,000
The original selling price is ₱960,000.

3. 25% of a man’s monthly income goes to income tax. If the tax on his monthly income was ₱9,250,
how much is the man’s monthly income?
X=tax amount÷ tax rate
X= ₱9,250 ÷25%
X= ₱37,000

The man’s monthly income is ₱37,000.

References:
 Banggawan, R., Asuncion, D.(2017).Fundamentals of Accountancy, Business and
Management 1. Aurora Hill, Baguio City: Real Excellence Publishing.
 Ferrer, R., Millan, Z.(2017). Fundamentals of Accountancy, Business and Management 1.
Bakakeng Sur, Baguio City: Bandolin Enterprise.
 Ong, F.(2016). Fundamentals of Accountancy, Business and Management 1. South Triangle,
Quezon City: C & E Publishing.
 Baysa, G., Lupisan, M.(2011). Accounting for Partnership and Corporation. Mandaluyong City:
Millenium books, Inc.

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