Business Math
Standards BCS-LEB-14: The student identifies the elements needed to develop a financial plan and to obtain business financing.
Agenda Bell Ringer: Scholarship Screenleap Recap Essential Questions Assessment
Essential Questions How do businesses use math everyday? How can technology be use to mathematically predict success or failure?
Scholarships Horatio Alger Association Scholarship Juicy J Scholarship $20,000 October 25th Family Income less $55,000 Juicy J Scholarship Girls Only
Growth Rate Month Sales Monthly Growth July $26,533 - August $26,710 September $26,977 October $27,397 November $27,600 December $28,202 Total $163,419 August – July = August Increase $26,710 - $26,533 = $177 August Increase ÷ July Sales = Percent increase $177 ÷ $26,533 = 0.7%
Growth Rate Month Sales Monthly Growth July $26,533 - August $26,710 0.7% September $26,977 1.0% October $27,397 1.6% November $27,600 December $28,202 2.2% Total $163,419 6.2% August – July = August Increase $26,710 - $26,533 = $177 August Increase ÷ July Sales = Percent increase $177 - $26,533 = 0.7%
Average Monthly Growth Rate Total Growth Rate ÷ Number of Months = Average monthly Growth 0.062 ÷ 5 = 1.2% Why is this number important?
Projecting Sales (Forecasting) Can use avg. Monthly Sales to project future sales Dec Sales x Growth Rate = Proj. Jan Increase $28,202 x 0.012 = $338 How else could you project Jan Sales? Project the Next 3 months
Assignment Go to www.finance.yahoo.com Forecast the stock price of 4 companies using their 3 prior year closing stock prices
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Step 4 May 63.36 June 61.6 July 63.68 August 65.97 September 62.82 October 72.42
Nike Growth Rate Month Stock Price Monthly Growth May $63.36 - June $61.60 -2.78% July $63.68 3.38% August $65.97 3.60% September $62.82 -4.77% October $72.42 15.28% Total 14.70% June – May = June Increase $26,710 - $26,533 = $177 June Increase ÷ May Sales = Percent increase $-1.76 ÷ $63.36 = -2.78%
Total 5 month growth rate Number of months Avg. Growth Rate Total 5 month growth rate Number of months 14.7% 5 =2.94%
Forecasting Multiply last month by 1+ growth rate October 72.42 Month Stock Price Formula Monthly Growth November 2.94% 102.94% x $72.42 $74.55 December 102.94% x $74.55 $76.74 January 102.94% x $76.74 $79.00 February 102.94% x $79.00 $81.32 March 102.94% x $81.32 $83.71
Assignment Go to www.finance.yahoo.com Forecast the stock price of 4 companies using their 3 prior year closing stock prices
Microsoft Excel: Growth Rates