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Mathematics in Business and EconomicsSome Real BasicsIt is often useful to go back and remind yourself of some of the very basics involved in dealing with maths. Look at the following equation:
At first sight this thing looks to be pretty hideous. What is this all about? In essence, this is an equation that says that one side of the equals sign represents a value that is exactly the same as the value on the other side of the equation - that is what the term equation means! The letters represent numbers - they could be any number, but the 'p' and the 't' terms may represent known variables - it could be price and time but the letter does not always denote what may be obvious! For example, should 'I' represent 'inflation', 'investment' or 'interest rates'? If you were asked to do something with this equation, all you would be doing is four basic things - adding, subtracting, multiplying and dividing. The skill is in knowing when to do which operation and why you are doing it. It is comforting to note, however, that you can break down something that looks pretty daunting into something that you started doing at primary school - and even before that in many cases! Before we get on to something as complex as the equation above, let us remind ourselves of some essentials that we must always bear in mind when approaching any type of maths. |
