1. Business Math

2. Standards
BCS-LEB-14: The student identifies the elements needed to develop a financial plan and to obtain business financing.

3. Agenda Bell Ringer: Scholarship Screenleap Recap Essential Questions
Assessment

4. Essential Questions How do businesses use math everyday?
How can technology be use to mathematically predict success or failure?

5. Scholarships Horatio Alger Association Scholarship Juicy J Scholarship
$20,000
October 25th
Family Income less $55,000
Juicy J Scholarship
Girls Only

6. 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
$ ÷ $26, = %

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
$ $26, = %

8. Average Monthly Growth Rate
Total Growth Rate ÷ Number of Months = Average monthly Growth
÷ = %
Why is this number important?

9. Projecting Sales (Forecasting)
Can use avg. Monthly Sales to project future sales
Dec Sales x Growth Rate = Proj. Jan Increase
$28,202 x = $338
How else could you project Jan Sales?
Project the Next 3 months

10. Assignment Go to www.finance.yahoo.com
Forecast the stock price of 4 companies using their 3 prior year closing stock prices

11. Step 1

12. Step 2

13. Step 3

14. Step 4 May 63.36 June 61.6 July 63.68 August 65.97 September 62.82
October 72.42

15. 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
$ ÷ $ = %

16. Total 5 month growth rate Number of months
Avg. Growth Rate
Total 5 month growth rate Number of months
14.7% 5
=2.94%

17. 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

18. Assignment Go to www.finance.yahoo.com
Forecast the stock price of 4 companies using their 3 prior year closing stock prices

19. Microsoft Excel: Growth Rates