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Page v

Dedication
Just for Matthew, Mia, Samuel, Gracie,
Mabel, and Maggie
Love
PaPa Jeff

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Page vii

Note to Students
ROADMAP TO
SUCCESS
Step 1:

How to use this book and the Total Slater Learning System.
Each chapter broken down into Learning Units. You should read one learning unit at
a time.
How do I know if I understand it?




Step 2:

Try the practice quiz. All the worked out solutions are provided. If you still have questions, watch the author on your DVD (comes with your text) and work each problem out.
Need more practice? Try the extra practice quiz provided. Check figures are at the end of
the chapter. Your instructor has worked out solutions if needed.
Go on to next Learning Unit in chapter.

Review the “Chapter Organizer” at the end of the chapter.
How do I know if I understand it?


Step 3:

Cover over the second or third column and see if you can explain the key points or the
examples.

Do assigned problems at the end of the chapter (or Appendix A). These may include
discussion questions, drill, word problems, challenge problems, video cases, as well as
projects from the Business Math Scrapbook and Kiplinger’s magazine.
Can I check my homework?


Step 4:

Appendix B has check figures for all the odd-numbered problems.

Take the Summary Practice Test.
Can I check my progress?


Appendix B has check figures for all problems.

What do I do if I do not match check figures?


Review the video tutorial on the student DVD—the author works out each problem.

To aid you in studying the book, I have developed the following color code:
Blue: Movement, cancellations, steps to solve, arrows, blueprints
Gold: Formulas and steps
Green: Tables and forms
Red: Key items we are solving for
If you have dif ficulty with any text examples, pay special attention to the red and the blue.
These will help remind you what you are looking for as well as what the procedures are.

Note to Students

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Note to Students

FEATURES

Features students have told me have helped them the most.

Blueprint Aid Boxes

For the first eight chapters (not in Chapter 4), blueprint aid boxes are available to help you
map out a plan to solv e a word problem. I know that often the hardest thing to do in solving
word problems is where to start. Use the blueprint as a model to get started.

Business Math Handbook

This reference guide contains all the tables found in the text. It makes homework, exams, etc.
easier to deal with than flipping back and forth through the text.

Chapter Organizer

At the end of each chapter is a quick reference guide called the Chapter Organizer and Study
Guide. Key points, formulas, and examples are provided. A list of vocabulary terms is also included, as well as Check Figures for Extra Practice Quizzes. All have page references. (A
complete glossary is found at the end of the text.) Think of the chapter organizer as your set of
notes and use it as a reference when doing homework problems, and to review before exams.

DVD-ROM

The DVD packaged with the te xt includes practice quizzes, links to Web sites listed in the
Business Math Internet Resource Guide, the Excel® templates, PowerPoint, videocases, and
tutorial videos—which cover all the Learning Unit Practice Quizzes and Summary Practice
Tests.

DVD
The Business Math
Web site

Visit the site at www.mhhe.com/slater9e and find the Internet Resource Guide with hot links,
tutorials, practice quizzes, and other study materials useful for the course.

Video Cases

There are seven video cases applying business math concepts to real companies such as Hotel
Monaco, Louisville Slugger, American President Lines, Washburn Guitars, Online Banking,
Buycostume.com, and Federal Signal Corporation. Video clips are included on the student
DVD. Some background case information and assignment problems incorporating information on the companies are included at the end of Chapters 6, 7, 8, 9, 11, 16, and 21.

Compounding/Present
Value Overlays

A set of color overlays are inserted in Chapter 13. These color graphics are intended to demonstrate for students the concepts of present value and future value and, even more important, the
basic relationship between the two.

Business Math
Scrapbook

At the end of each chapter you will f ind clippings from The Wall Street Journal and various
other publications. These articles will gi ve you a chance to use the theory pro vided in the
chapter to apply to the real world. It allows you to put your math skills to work.

Group activity: Personal
Finance, a Kiplinger
Approach

In each chapter you can debate a business math issue based on a Kiplinger’s Personal Finance
magazine article that is presented. This is great for critical thinking, as well as improving your
writing skills.

Spreadsheet Templates

Excel® templates are available for selected end-of-chapter problems. You can run these templates as is or enter your own data. The templates also include an interest table feature that enables you to input an y percentage rate and an y terms. The program will then generate table
values for you.

Cumulative Reviews

At the end of Chapters 8 and 13 are w ord problems that test your retention of b usiness
math concepts and procedures. Check f igures for all cumulative review problems are in
Appendix B.

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Page ix

Acknowledgments
Academic Experts, Contributors
Anthony Aiken
Justin Barclay
Cheryl Bartlett
Ben Bean
George Bernard
Don Boyer
Gilbert Cohen
Laura Coliton
Judy Connell
Ronald Cooley
Kathleen Crall
Patrick Cunningham
John Davis
Tamra Davis
James DeMeuse

Doug Dorsey
Acie Earl
Rick Elder
Marsha Faircloth
Tony Franco
Bob Grenowski
Victor Hall
Frank Harber
James Hardman
Helen Harris
Ron Holm
William Hubert
Christy Isakson
Elizabeth Klooster
Libby Kurtz

Ken Koerber
Jennifer Lopez
Bruce MacLean
Lynda Mattes
Jon Matthews
Loretta McAdam
Jean McArthur
Sharon Meyer
Norma Montague
Christine Moreno
Fran Okoren
Roy Peterson
Cindy Phipps
Anthony Ponder
Joseph Reihling

Dana Richardson
Denver Riffe
David Risch
Joel Sacramento
Naim Saiti
Ellen Sawyer
Tim Samolis
Marguerite Savage
Warren Smock
Ray Sparks
William Tusang
Jennifer Wilbanks
Andrea Williams
Beryl Wright
Denise Wooten

Company/Applications
Chapter 1

Chapter 4

Home Depot—Problem solving
Girl Scouts—Reading, writing, and
rounding numbers
McDonald’s—Rounding
Tootsie Roll—Rounding all the way
Toyota, Honda, Saturn—Rounding
Hershey—Subtraction of
whole numbers

Bank of America—Personal finance
Continental, Amazon—E-checks
J.P. Morgan Chase—Online banking
eBay—Online banking
PayPal—Online banking
PNC Financial—Online banking
Visa, Mastercard—Electronic
bill paying
Volkswagon—Banking application

Chapter 2
M&M’s/Mars—Fractions
and multiplication
Wal-Mart—Type of fractions
TiVo—Subraction of fractions
M&M’s/Mars—Multiplying and
dividing fractions
Target, MinuteClinic, RediClinic—
Healthcare
Exotic Car Share—Fractional
ownership

Chapter 3
McDonald’s—Currency application
M&M’s/Mars—Fractional decimal
conversion
Apple—Decimal applications in
foreign currency
Cingular, T-Mobile—Cost of phone calls
Burberry, Tiffany—Currency
application

Chapter 5
Calvin Klein, Burberry—Unknown
Stanley Consultants—Workforce
Snickers—Solving for the Unknown
Disney—Solving for the Unknown
American Quarter Coach—Personal
finance
Yacht Smart—Personal finance

Chapter 6
Capital One Financial—Cost of ATMs
Ford—Percents
Dell, Apple, Gateway—Percents
HP, NEC, Sony, IBM—Percents
M&M’s/Mars—Percent, percent
increase and decrease
Kellogg—Converting decimals to
percents
Wal-Mart—Percent increase, decrease

USA Today, The Wall Street Journal—
Portion, base, rate
The New York Times, The Washington
Post—Portion, base, rate
Chicago Tribune, Houston Chronicle—
Portion, base, rate
UPS—Portion, base, rate

Chapter 7
Google, Overstock, AOL—Online
retailers
Randall Scott Cycle, Condor Golf—
Discounts
Lighting Galleries of Sarasota—
Discounts
DHL, UPS—Freight
FedEx—Freight
Comcast, AT&T, Time Warner—
Personal finance

Chapter 8
Disney, Payless Shoe Source—Licensing
Levi-Strauss, Target—Markup
H&M, GAP, French Connection,
Wal-Mart—Sourcing
John Hancock—Long-term care
Bennigan’s—Markup

Chapter 9
Delta Airlines—Paycuts
Fed Express—Independent contractors

Acknowledgments

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Acknowledgments

Chapter 10

Chapter 15

Chapter 20

Federal Deposit Insurance Company—
Liability
J.P. Morgan Chase, Citigroup—Late
Payment charges
Bank of America—Late payment charges
Data Trac—Cheaper loans
Digital Equipment Corp.—Cheaper loans
Pentagon Federal Credit Union—
Cheaper loans

Bank for International Settlements—
Home price appreciation
Credit Suisse First Boston—Monthly
payments
Lending Tree, Inc.—Cost of refinancing

Mavlife Financial Co.—Long-term care
Home Depot, Lowes—Renting a truck
AccuQuote.com—Cost of insurance
Allstate, Amica Mutual—Cost of
insurance
Progressive, Youdecide.com—Cost of
insurance

Chapter 11
Bank of Internet, Citibank, E-Loan,
Prosper.com—Borrowing online
Saks Inc.—Notes
Small Business Administration—Line
of credit
U.S. Treasury—Buying treasuries online

Chapter 12
American Express, Bank of America—
Saving cash
Bankrate.com—Interest rates

Chapter 13
Dunkin’ Donuts—Investing your savings
State Lotteries—Annuities
D3 Financial Counselors—Roth

Chapter 14
Land Rover—APR
Boston Globe—Monthly payments

Chapter 16
Coach, Inc.—Net income
Kodak—Accounting errors
H. J. Heinz Co.—Profit/Sales
L. G. Electronics, Phillips Electronics—
Impairment
Samsung—Impairment
Wal-Mart, Target—Profit margin

Chapter 17
Land Rover—Depreciation
Kelley Blue Book—Resale value
BMW of North America—Tax breaks

Chapter 18
Wal-Mart—Inventory identification
ODW Logistics, Inc.—Outsourcing
Ryerson Tull—LIFO, FIFO
Global Sources Ltd.—Just-in-time
inventory

Chapter 19
Hillerich & Bradsby Co.—Bartering
Deloitte & Touche USA—Bartering

Chapter 21
CCH Inc.—Sale of stocks
Home Depot—Stock quotations
Goodyear—Bonds
Putnam Investments—Mutual funds
Google—PE ratio
Viacom Inc., CBS Corporation—
Corporate strategy

Chapter 22
American Institute of Certified Public
Accountants—Median
Federal Reserve—Retirement
Wal-Mart, Sam’s Club—Live graphs,
pie charts
Apple, Microsoft—Corporate
reporting
Target, Kmart, Costco—Number
reporting
Exxon Mobil, General Motors, GE,
Ford—Number reporting

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Contents
Kiplinger’s Personal Finance Magazine Subscription Form xv

CHAPTER 1

Whole Numbers; How to Dissect and Solve Word Problems 1
LU 1–1
LU 1–2
LU 1–3

CHAPTER 2

Fractions 33
LU 2–1
LU 2–2
LU 2–3

CHAPTER 3

The Checking Account 89
Bank Statement and Reconciliation Process; Trends in Online Banking 93

Solving for the Unknown: A How-to Approach for Solving
Equations 113
LU 5–1
LU 5–2

CHAPTER 6

Rounding Decimals; Fraction and Decimal Conversions 65
Adding, Subtracting, Multiplying, and Dividing Decimals 71

Banking 88
LU 4–1
LU 4–2

CHAPTER 5

Types of Fractions and Conversion Procedures 35
Adding and Subtracting Fractions 40
Multiplying and Dividing Fractions 46

Decimals 64
LU 3–1
LU 3–2

CHAPTER 4

Reading, Writing, and Rounding Whole Numbers 2
Adding and Subtracting Whole Numbers 8
Multiplying and Dividing Whole Numbers 12

Solving Equations for the Unknown 114
Solving Word Problems for the Unknown 120

Percents and Their Applications 137
LU 6–1 Conversions 138
LU 6–2 Application of Percents—Portion Formula 144
Video Case: American President Lines 169

CHAPTER 7

Discounts: Trade and Cash 170
LU 7–1 Trade Discounts—Single and Chain (Includes Discussion of Freight) 171
LU 7–2 Cash Discounts, Credit Terms, and Partial Payments 179
Video Case: Hillerich & Bradsby Company “Louisville Slugger” 202

CHAPTER 8

Markups and Markdowns; Perishables and
Breakeven Analysis 203
LU 8–1 Markups Based on Cost (100%) 205
LU 8–2 Markups Based on Selling Price (100%) 210
LU 8–3 Markdowns and Perishables 216
LU 8–4 Breakeven Analysis 219
Video Case: Hotel Monaco Chicago 233
Cumulative Review: A Word Problem Approach—Chapters 6, 7, 8

CHAPTER 9

234

Payroll 235
LU 9–1
LU 9–2

Calculating Various Types of Employees’ Gross Pay 236
Computing Payroll Deductions for Employees’ Pay;
Employers’ Responsibilities 240
Video Case: Washburn Guitars 257

Contents

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Contents

CHAPTER 10

Simple Interest 258
LU 10–1 Calculation of Simple Interest and Maturity Value 259
LU 10–2 Finding Unknown in Simple Interest Formula 262
LU 10–3 U.S. Rule—Making Partial Note Payments before Due Date 264

CHAPTER 11

Promissory Notes, Simple Discount Notes,
and the Discount Process 278
LU 11–1 Structure of Promissory Notes; the Simple Discount Note 279
LU 11–2 Discounting an Interest-Bearing Note before Maturity 282
Video Case: Online Banking 294

CHAPTER 12

Compound Interest and Present Value 295
LU 12–1 Compound Interest (Future Value)—The Big Picture 296
LU 12–2 Present Value—The Big Picture 303

CHAPTER 13

Annuities and Sinking Funds 316
LU 13–1 Annuities: Ordinary Annuity and Annuity Due (Find Future Value) 317
LU 13–2 Present Value of an Ordinary Annuity (Find Present Value) 323
LU 13–3 Sinking Funds (Find Periodic Payments) 326
Cumulative Review: A Word Problem Approach—Chapters 10, 11, 12, 13 339

CHAPTER 14

Installment Buying, Rule of 78, and Revolving Charge
Credit Cards 341
LU 14–1 Cost of Installment Buying 342
LU 14–2 Paying Off Installment Loans before Due Date 347
LU 14–3 Revolving Charge Credit Cards 350

CHAPTER 15

The Cost of Home Ownership 365
LU 15–1 Types of Mortgages and the Monthly Mortgage Payment 367
LU 15–2 Amortization Schedule—Breaking Down the Monthly Payment 370

CHAPTER 16

How to Read, Analyze, and Interpret Financial Reports 382
LU 16–1 Balance Sheet—Report As of a Particular Date 383
LU 16–2 Income Statement—Report for a Specific Period of Time 389
LU 16–3 Trend and Ratio Analysis 394
Video Case: Buycostumes.com 410

CHAPTER 17

Depreciation 412
LU 17–1
LU 17–2
LU 17–3
LU 17–4

CHAPTER 18

Concept of Depreciation and the Straight-Line Method 413
Units-of-Production Method 415
Declining-Balance Method 417
Modified Accelerated Cost Recovery System (MACRS)
with Introduction to ACRS 418

Inventory and Overhead 429
LU 18–1 Assigning Costs to Ending Inventory—Specific Identification; Weighted
Average; FIFO; LIFO 431
LU 18–2 Retail Method; Gross Profit Method; Inventory Turnover;
Distribution of Overhead 436

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Contents

CHAPTER 19

Sales, Excise, and Property Taxes 453
LU 19–1 Sales and Excise Taxes 454
LU 19–2 Property Tax 456

CHAPTER 20

Life, Fire, and Auto Insurance 466
LU 20–1 Life Insurance 467
LU 20–2 Fire Insurance 472
LU 20–3 Auto Insurance 475

CHAPTER 21

Stocks, Bonds, and Mutual Funds 490
LU 21–1 Stocks 491
LU 21–2 Bonds 495
LU 21–3 Mutual Funds 497
Video Case: Federal Signal Corporation 509

CHAPTER 22

Business Statistics 510
LU 22–1 Mean, Median, and Mode 511
LU 22–2 Frequency Distributions and Graphs 514
LU 22–3 Measures of Dispersion (Optional) 520

APPENDIX A:

Additional Homework by Learning Unit A

APPENDIX B:

Check Figures B

APPENDIX C:

Glossary C

APPENDIX D:

Metric System D

Index IN

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Page xv

Because Money Matters...
Subscribe to Kiplinger’s at
Special Student Rates!
Every month, more than three million Americans turn to Kiplinger’s Personal Finance magazine for advice and information about how to manage their money . How to save it. Spend it.
Invest it. Protect it. Insure it. And make more of it.
If it affects you and your money, then you’ll find it in the pages of Kiplinger’s. From our
annual ranking of the nation’s best mutual funds to our yearly rating of new automobiles, we
provide you with a different kind of investment publication.
We make it easy for you to subscribe with the lowest rates available to students and
educators. Just provide your name and address below . Make checks payable to Kiplinger’s
Personal Finance. Or, if you prefer we will bill you later.

Student’s Name

Address

City

(

Apt. #

State

Zip

)

Phone

Term: One year for $12.00
After completing the form, please mail it to: Kiplinger’s Personal Finance,
P.O. Box 3291, Harlan, Iowa 51593-2471.
CODE: J5MCGRAW

xv

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/Volumes/207/MHDQ049

From Jeff’s Desk

One Million Copies Sold...Thank You!
DVD with Each Text
THE SLATER
LEARNING SYSTEM
Text

WOW! Thank you for making my book the number one best-



Practice Quiz



Chapter Organizer

selling text in the country. For this ninth edition, I have spent the



Critical Thinking Discussion Questions



Drill Problems



Word Problems



Challenge Problems



Summary Practice Tests

is not cosmetic; I have included the latest material from The Wall



Personal Finance:
A Kiplinger Approach

Street Journal and Kiplinger’s magazine. I continue to write the Test



Business Math Scrapbook with
Internet Applications

last two years writing new material for the text, doing new videos
on the student DVD, as well as updating supplements. This revision

Bank and Instructor’s Manual myself. I am pleased to let you know


I have created new online tests as well. The following walk-through
will show you what I like to call my Total Learning System. But
before we do this, I would like to thank you, the customer.

Internet Web site
(www.mhhe.com/slater9e)



Appendix A Problems by Learning Unit



Appendix B Check Figures



Video Cases



Compounding/Present Value Overlays

My passion: to serve my customers, both instructors and
students. I don’t take being number one in sales lightly. You can
reach me via e-mail at jeffslater@aol.com or call me directly on
my toll free number: 1-800-484-1341 . . . 8980.
I believe you should put your energy into the classroom or your
online course. It is my job to provide you with the best and most upto-date text, along with an author-driven supplements package.
Now let’s check out this Instructor’s Walk-through.

Best,

Jeffrey Slater

Supplements


Business Math Handbook



Web site and Online Learning Center



Business Math Internet Resource Guide



DVD-ROM



Test Bank



Computerized Testing with EZ Test



Instructor’s Resource CD-Rom



Instructor’s Resource Manual



Excel Workbook



Financial Calculator Guide



Electronic Calculator Guide



TI-83/TI-84 Calculator Guide



Student Solutions Manual & Study Guide



Author support—e-mail



Publisher support—sales
representatives, e-mail



The Wall Street Journal newspaper

l.com

jeffslater@ao

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For All My Loyal Adopters
Highlights of Changes for 9E: A Transition Guide
For all chapters, I have included new, more recent clips from The Wall Street Journal for the opening, as
well as new Kiplinger’s Personal Finance articles and scrapbooks at the end of the chapter. All of these
have been chosen to provide valuable and timely real-world topics for you and your students.
Chapter 1: Whole Numbers: How to Dissect
and Solve Word Problems
• Extra practice quiz with check figures added
for each learning unit (throughout text)
• Deletion of horizontal and vertical addition
• New summary practice test, now included
on DVD-video tutorial
Chapter 2: Fractions
• New summary practice test, now included
on DVD
Chapter 3: Decimals
• New foreign currency table updated
Chapter 4: Banking
• Deletion of credit cards and merchant summary
• New clips within chapter and new material on
online banking
Chapter 5: Solving for the Unknown:
A How-to Approach for Solving Equations
• New summary practice test, now included
on the DVD
Chapter 6: Percents and Their Applications
• Extra practice quiz with check figures added
for each learning unit
• New section on calculating percent decrease
and increase using Wal-Mart
• New summary practice test, now included
on the DVD
Chapter 7: Discounts: Trade and Cash
• Extra practice quiz with check figures added
for each learning unit
• New clips within chapter
Chapter 8: Markups and Markdowns:
Perishables and Breakeven Analysis
• New chapter opener and clip
• New learning unit on breakeven analysis
Chapter 9: Payroll
• New chapter opener and clip
• New payroll tables
• FICA now based on 6.2% on $97,500

T–2

Chapter 10: Simple interest
• New chapter opener and clip, new clips
within chapter
• New drill and word problems
Chapter 13: Annuities and Sinking Funds
• New math formulas added to chapter
organizer as alternative to table lookup
• New chapter opener and clip, new clips
within chapter
• Update to plastic overlays, show relationship
to tables
Chapter 14: Installment Buying, Rule of 78, and
Revolving Charge Credit Cards
• New chapter opener and clip, new clips
within chapter
• New drill and word problems
Chapter 15: Cost of Home Ownership
• New reference to mortgage accelerator loan
Chapter 16: How to Read, Analyze, and
Interpret Financial Reports
• New material on Sarbanes-Oxley
• New Video Case
Chapter 17: Depreciation
• Deleted unit on sum-of-years digits
Chapter 19: Sales, Excise, and Property Tax
• Updated, new drill and word problems
Chapter 20: Life, Fire, and Auto Insurance
• Updated with new clips, drill and word problems
Chapter 21: Stocks, Bonds, and Mutual Funds
• Newspaper insert on How to Read The Wall
Street Journal has been updated
Chapter 22: Statistics
• New chapter opener and clip, new clips
within chapter

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Real-World Applications
Instructors asked for an even greater emphasis on the applications of business
math in the United States and globally. The Ninth Edition includes references
to companies such as Google, eBay, TiVo, Wal-Mart, and DHL to illustrate
chapter topics. Over 100 actual clippings from The Wall Street Journal and 22
Kiplinger’s Personal Finance magazine articles give students a more complete
view of real-world practices from the business press.

Mark Lennihan/AP Wide World

Too often people think their bank is
their best friend. You should remember
that your bank is a business. The banking industry is very competitive. Note in
the Wall Street Journal clipping “Bank
of America to Pay $2.5 Billion for
China Foothold” how quickly the banking sectors are changing all over the
world to be more competitive.
An important fixture in today’s banking is the automatic teller machine
(ATM). The ability to get instant cash is
a convenience many bank customers
enjoy. However , more than half of the
ATM customers do not like to deposit
Wall Street Journal © 2005
checks because they are afraid the checks
will not be correctly deposited to their
account. Bank of America, Bank One, and Wells Far go are testing new ATMs that accept
a check, scan the check, and print a receipt with a photographic image of the check. When
these machines are widely available, they will eliminate the fear of depositing checks.
The effect of using an ATM card is the same as using a debit card—both transactions

Personal Finance
A KIPLINGER APPROACH

Wall Street Journal © 2005

BUSINESS MATH ISSUE
Kiplinger’s © 2006

Vegetable oil will not solve our oil problem.
1. List the key points of the article and information to support your position.
2. Write a group defense of your position using math calculations to support your view.

31

The Wall Street Journal
Highlights
With over 100 clippings
from The Wall Street
Journal, students can
see the relevance of text
topics to the business
world.
Kiplinger’s Personal
Finance Magazine Articles
These articles were
completely updated this
edition and include:
1. Saving the World with
French Fries, page 31
2. Checkups on the Run,
page 62
3. Call U.S. for Less,
page 86
4. Electronic Bill-Paying
Snafus, page 111
5. Retire a Millionaire,
page 135
6. Live Better and Sell
Higher, page 167
7. Save a Bundle on
Telecom Services,
page 200
8. A Fresh Look at LongTerm Care, page 231
9. Healthy Choices,
page 255
10. My Unpaid Debt Still
Haunts Me, page 276
11. Last Chance to Lock
In, page 292
12. Keep the Change,
page 314
13. An Overlooked Way
to Shear Your Taxes,
page 337
14. Should I Take a 0%
Credit Card Offer?,
page 363
15. Should You Buy or Sell
First?, page 380
16. Pension Protection,
page 408
17. Buy a 2006 Car on
Sale?, page 427
18. China Go-Between,
page 451
19. Cut Your Property
Tax, page 464
20. Cut Insurance Costs,
page 488
21. What’s Google
Worth?, page 507
22. Why Two Tech
Titans Will Please
Shareholders This
Coming Year, page
536

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Favorite Features of the Text
You can count on all of the key features developed for this book over the
years remaining in the Ninth Edition. I have listened to instructors using the
text, as well as my own students, in order to improve the book and make
sure it serves you and your students effectively. My goal was to make it as
motivating and understandable as possible for both the young, out of high
school student and the older, returning student.

Chapter Openers

The chapter openers introduce students to the chapter’s topics, and Learning
Objectives for each unit provide them with an overview of the key material
that will be covered. Students can see the real-world applications of business
math through The Wall Street Journal clips which make the topics relevant to
them. (p. 137)

CHAPTER

6

Percents and
Their
Applications

LEARNING UNIT OBJECTIVES
LU 6–1: Conversions
• Convert decimals to percents (including rounding percents),
percents to decimals, and fractions to percents (pp. 139–141).
• Convert percents to fractions (p. 142).

LU 6–2: Application of Percents—Portion Formula
• List and define the key elements of the portion formula
(pp. 144–145).
• Solve for one unknown of the portion formula when the other
two key elements are given (pp. 145–148 ).
• Calculate the rate of percent decreases and increases
(pp. 148–151).

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Clear Explanations

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Explanations are given in a step-by-step format that is easy to follow and
remember, followed by understandable examples. (p. 48)
Dividing Proper Fractions
The division of proper fractions introduces a new term—the reciprocal. To use reciprocals,
we must first recognize which fraction in the problem is the divisor—the fraction that we
divide by. Let’s assume the problem we are to solve is 18 23. We read this problem as “ 18
divided by 23.” The divisor is the fraction after the division sign (or the second fraction). The
steps that follow show how the divisor becomes a reciprocal.
DIVIDING PROPER FRACTIONS
Step 1.

Invert (turn upside down) the divisor (the second fraction). The inverted number
is the reciprocal.

Step 2.

Multiply the fractions.

Step 3.

Reduce the answer to lowest terms or use the cancellation method.

Do you know why the inverted fraction number is a reciprocal? Reciprocals are two num1
2
bers that when multiplied give a product of 1. For example, 2 (which is the same as
1) and 2
are reciprocals because multiplying them gives 1.
EXAMPLE

1 2

8 3

1 3
3

8 2
16

Dividing Mixed Numbers
Now you are ready to divide mixed numbers by using improper fractions.
DIVIDING MIXED NUMBERS

Functional Use of Color

Step 1.

Convert all mixed numbers to improper fractions.

Step 2.

Invert the divisor (take its reciprocal) and multiply. If your final answer is an
improper fraction, reduce it to lowest terms. You can do this by finding the
greatest common divisor or by using the cancellation technique.

Functional color-coding was first introduced in the Third Edition of the text.
While many books use color, I set out from the beginning to use color to teach.
I personally color-code each element to enhance the learning process. For
example, when a student sees a number in red, they know it is a key item
they are solving for.
Color Key
Blue: Movement, cancellations, steps to solve, arrows, blueprints
Gold: Formulas and steps
Green: Tables and forms
Red: Key items we are solving for
Magenta: Worked-out solutions in Teacher’s Edition only

Plastic Overlays

Chapter 13 features plastic overlays that review compounding, present value,
ordering annuities, and present value annuities.

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Practice Quizzes follow each Learning Unit in the book. These quizzes provide
immediate feedback for students to check their progress and are followed by
worked-out solutions. The logo lets students know that videos are available
on the student DVD-ROM. In these videos I carefully walk students through
the material, reinforcing the content. These are accessible by each Learning
Unit so students can go directly to the Practice Quiz they choose without
searching cumbersome videotapes. (p. 240) New to this edition are Extra
Practice Quizzes which follow the Practice Quizzes. Check figures and page
references are included at the bottom of the Chapter Organizer.

Practice Quizzes and
New Extra Practice
Quizzes

LU 9–1

PRACTICE QUIZ

Complete this Practice Quiz
to see how you are doing

1.
2.

DVD

3.

Jill Foster worked 52 hours in one week for Delta Airlines. Jill earns $10 per hour. What
is Jill’s gross pay, assuming overtime is at time-and-a-half?
Matt Long had $180,000 in sales for the month. Matt’ s commission rate is 9%, and he
had a $3,500 draw. What was Matt’s end-of-month commission?
Bob Meyers receives a $1,000 monthly salary . He also receives a variable commission
on net sales based on the following schedule (commission doesn’ t begin until Bob earns
$8,000 in net sales):
$8,000–$12,000
Excess of $12,000 to $20,000

1%
3%

Excess of $20,000 to $40,000
More than $40,000

5%
8%

Assume Bob earns $40,000 net sales for the month. What is his gross pay?


1.

2.

3.

Blueprint Aid for
Dissecting and Solving
a Word Problem

Solutions
40 hours $10.00 $400.00
12 hours $15.00 180.00 ($10.00 1.5 $15.00)
$580.00
$180,000 .09
$16,200
3,500
$12,700
Gross pay $1,000 ($4,000 .01) ($8,000 .03) ($20,000 .05)
$1,000
$40

$240

$1,000
$2,280

Students need help in overcoming their fear of word problems. The first eight
chapters (except Chapter 4) provide a “blueprint” format for solving word
problems. It shows students how to begin the problem-solving process, gets
them actively involved in dissecting the word problem, shows visually what
has to be done before calculating, and provides a structure for them to
use. (p. 147)
The Word Problem Sales of Milk Chocolate M&M’ s® are $320,000. Total sales of Milk
Chocolate M&M’ s, Peanut, and other M&M’ s® chocolate candies are $400,000. What
percent of Peanut and other M&M’ s® chocolate candies are sold compared to total
M&M’s® sales?
The facts

Solving for?

Steps to take

Key points

Milk Chocolate
M&M’s® sales:
$320,000.

Percent of
Peanut and
other M&M’s®
chocolate
candies sales
compared to
total M&M’s®
sales.

Identify key elements.

Represents sales of
Peanut and other M&M’s®
chocolate candies

Total M&M’s®
sales:
$400,000.

Base: $400,000.
Rate: ?
Portion: $80,000
($400,000 $320,000).
Portion
Rate
Base

Portion
($80,000)
Base Rate
($400,000)
(?)
When portion becomes
$80,000, the portion and rate
now relate to same piece of
base.

Steps to solving problem
1. Set up the formula.
2. Calculate rate.

Rate
R

Portion
Base
$80,000
($400,000 $320,000)
$400,000

R 20%

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The Chapter Organizer

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This quick reference guide provides students with a complete set of notes,
including color coding consistent with the text. Key points, formulas, examples,
vocabulary, and new Check Figures for the Extra Practice Quizzes are included
with page references. Widely copied by other textbooks, this tool is useful as a
reference for students as well as for reviews before exams. (p. 247)

CHAPTER ORGANIZER AND STUDY GUIDE
WITH CHECK FIGURES FOR EXTRA PRACTICE QUIZZES (concluded)
Topic

Key point, procedure, formula

Example(s) to illustrate situation

State and federal
unemployment, p. 244

Employer pays these taxes. Rates are 6.2%
on $7,000 for federal and 5.4% for state on
$7,000. 6.2% 5.4% .8% federal rate
after credit. If state unemployment rate is
higher than 5.4%, no additional credit is
taken. If state unemployment rate is less
than 5.4%, the full 5.4% credit can be
taken for federal unemployment.

Cumulative pay before payroll, $6,400;
this week’s pay, $800. What are state
and federal unemployment taxes for
employer, assuming a 5.2% state
unemployment rate?

Biweekly, p. 236
Deductions, p. 237
Differential pay
schedule, p. 238
Draw, p. 239
Employee’s Withholding
Allowance Certificate
(W-4), p. 241
Fair Labor Standards
Act, p. 237
Federal income tax
withholding (FIT), p. 242

KEY TERMS

CHECK FIGURES FOR
EXTRA PRACTICE QUIZZES
WITH PAGE REFERENCES

Critical Thinking
Discussion Questions

.052 $600 $31.20

Federal
.008 $600 $4.80
($6,400 $600 $7,000 maximum)

Federal Insurance
Contribution Act
(FICA), p. 241
Federal Unemployment
Tax Act (FUTA), p. 244
Gross pay, p. 237
Medicare, p. 241
Monthly, p. 236
Net pay, p. 242
Overrides, p. 239
Overtime, p. 237
Payroll register, p. 240

LU 9–1a (p. 240)
1. $732
2. $12,800
3. $4,070

State

Percentage method, p. 242
Semimonthly, p. 236
Social Security, p. 241
State income tax
(SIT), p. 242
State Unemployment Tax Act
(SUTA), p. 244
Straight commission, p. 239
Variable commission
scale, p. 239
W-4, p. 241
Weekly, p. 236

LU 9–2a (p. 245)
1. $31; 145; $2,184.43
2. $846.60; $132.80

These thought-provoking questions follow the Chapter Organizer and are
designed to get students to think about the larger picture and the “why’s” of
business math. They go beyond the typical questions by asking students to
explain, define, create, etc. (p. 247)

Critical Thinking Discussion Questions
1. Explain the dif ference between biweekly and semimonthly .
Explain what problems may develop if a retail store hires
someone on straight commission to sell cosmetics.
2. Explain what each column of a payroll register records
(p. 241) and how each number is calculated. Social Security

tax is based on a specific rate and base; Medicare tax is based
on a rate but no base. Do you think this is fair to all taxpayers?
3. What taxes are the responsibility of the employer? How can
an employer benefit from a merit-rating system for state
unemployment?

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Over 50 photos are included to stimulate student interest and help students
see business math with imagination and enthusiasm. Whether showing
McDonald’s Big Mac prices in various international cities, inventory systems,
or online banking and bill paying, business math becomes real to them.

Photos

Freight Terms
Do you know how successful the shipping businesses of DHL, UPS, and FedEx are in
China? The Wall Street Journal clipping “Faster, Faster . . .” shows that the shipping businesses of these three companies can be quite profitable.

Claro Cortes IV/Reuters/Landov

Wall Street Journal © 2004

End-of-Chapter Problems

At the end of each chapter Drill Problems are followed by Word Problems. I’ve
added new problems in each chapter using material from newspapers such as
The New York Times and magazines such as BusinessWeek, Consumer Reports,
and Smart Money to help students see the relevance of the material.
An Excel logo next to a problem indicates an Excel template is available on
the DVD-ROM and in the Excel Workbook to help solve that problem.
Challenge Problems let your students stretch their understanding and
ability to solve more complex problems. I’ve included two per chapter. A
Summary Practice Test concludes the problem section and covers all the
Learning Objectives in the chapter.

Drill Problems
END-OF-CHAPTER PROBLEMS
Name

Date

DRILL PROBLEMS
Convert the following decimals to percents:
6–1. .74 74%

6–2. .824 82.4%

6–3. .9 90%

6–4. 8.00 800%

6–5. 3.561 356.1%

6–6. 6.006 600.6%

6–8. 14%

3
6–9. 64 % .643
10

Convert the following percents to decimals:
6–7. 8%

.08

6–10. 75.9%

.759

6–11. 119%

.14
1.19

6–12. 89%

Convert the following fractions to percents (round to the nearest tenth percent as needed):

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6–13.

1
.0833 8.3%
12

6–14.

1
.0025 .3%
400

6–15.

7
.875 87.5%
8

6–16.

11
.9166 91.7%
12

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Word Problems
WORD PROBLEMS (First of Four Sets)
6–52. At a local Wendy’s, a survey showed that out of 12,000 customers eating lunch, 3,000 ordered Diet Pepsi with their meal.
What percent of customers ordered Diet Pepsi?
3,000
Note: Portion and rate must
Portion
25%
refer to same piece of the base.
12,000
(3,000)
Base Rate
(12,000) (?)

6–53. What percent of customers in Problem 6–52 did not order Diet Pepsi?
Note: Portion and rate must
9,000
75%
refer to same piece of the base.
12,000

Portion
(9,000)
Base Rate
(12,000)
(?)

(

12,000
–3,000

(

6–54. The Rhinelander Daily News March 4, 2007 issue, ran a story on rising gas prices. Last week, gas was selling for $1.99 a
gallon and the world looked rosy. Not so now. The price of a gallon of regular unleaded nosed up to $2.24. What was the

Challenge Problems

CHALLENGE PROBLEMS
6–96. Continental Airlines stock climbed 4% from $18.04. Shares of AMR Corporation, American Airlines’ parent company,
closed up 7% at $12.55. AirTran Airways went from $17.27 to $17.96. Round answers to the nearest hundredth.
(a) What is the new price of Continental Airlines stock? (b) What had been the price of AMR Corporation stock? (c)
What percent did AirTran Airways increase? Round to the nearest percent.
a. $18.04 1.04 $18.76 or $18.04 .04 $ .7216
Portion
(?)
18.04
$18.7616 $18.76
Base Rate
($18.04) (1.04)

b.

$12.55
$11.728971 $11.73
1.07

Portion
($12.55)
Base Rate
(?)
(1.07)

c.

$.69
3.9953676% 4.00%
$17.27

Portion
($.69)

( (
$17.96
– 17.27

Base Rate
($17.27)
(?)

Summary Practice Test

The ninth edition DVD now contains video tutorials of all Summary Practice Tests.

15. Target ordered 400 iPods. When Target received the order, 100 iPods were missing. What percent of the order did Target receive? (p. 146)
Portion
300
(300)
75%
400
Base Rate
(400)
(?)

16. Matthew Song, an employee at Putnam Investments, receives an annual salary of $120,000. Today his boss informed him
that he would receive a $3,200 raise. What percent of his old salary is the $3,200 raise? Round to the nearest hundredth percent. (p. 146)
Portion
$3,200
2.67%
($3,200)
$120,000
Base Rate
($120,000)
(?)

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Personal Finance:
A Kiplinger Approach

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A Kiplinger Group Project at the end of each chapter includes an article from
Kiplinger’s Personal Finance magazine. Each article presents a business math
issue for students to debate and solve. Suggested answers are located in
the Instructor’s Resource Manual. This is an excellent tool to develop critical
thinking and writing skills. It also provides opportunities for students to
become involved in team projects. As stated in the AMATYC standards:
“mathematics faculty will foster interactive learning through student writing,
reading, speaking, and collaborative activities so that students can learn to
work effectively in groups and communicate about mathematics both orally
and in writing.” (p. 292)

Personal Finance
A KIPLINGER APPROACH

M L H A R R I S /G E T T Y I M A G E S

can apply for a PLUS now and consolidate to lock in this year’s rate, says
Mark Brenner, of College Loan Corp.
(www.collegeloan.com), which makes
such loans. Ask your school’s financialaid office for details.

G Students who take

out Stafford loans after
July 1 will pay a fixed
interest rate of 6.8%.

CO L L EG E

| To save on student-loan interest rates,

consolidate your debt by July 1. By Jane Bennett Clark

Last chance to LOCK in
t se e m s l ik e only yesterday
that student-loan rates were
sinking faster than a December
sun. Alas, the days of magically
vanishing—or modestly rising—rates are about to end. Starting
July 1, the Deficit Reduction Act of
2005 will set a fixed rate of 6.8% on
new Stafford loans, about two percentage points above this past year’s lowest
rate. Similarly, PLUS loans for parent
borrowers will be fixed at 8.5%, up
from the current 6.1%.
But the fixed rates won’t apply to
outstanding Stafford and PLUS loans.
On those loans, rates will continue to
change each July 1 based on the 91-day
Treasury-bill yield set the last Thursday in May. The T-bill rate is expected
to rise, so it pays to consolidate your
loans and lock in the lower rate.
Things get a little tricky if you con-

I

solidated last spring to take advantage
of bottom-cruising rates (as low as
2.87% for Stafford loans and 4.17%
for PLUS loans) and have since taken
out new loans. You can consolidate the
new loans, but you’ll want to keep the
two consolidations separate, says Gary
Carpenter, executive director of the
National Institute of Certified College
Planners (www.niccp.com). “If you roll
an old consolidation into a new one,
you get a blended rate—the lower rate
is lost,” says Carpenter. And you may
have to shop for a lender; some balk at
consolidating loans of less than $7,500.
Although financial-aid packages
were calculated this spring, next fall’s
freshmen will pay the post-July, fixed
rate on Staffords; likewise, PLUS loans
for parents of incoming freshmen will
carry the new fixed rate. However,
parents of currently enrolled students

Other options. After July 1, parents
choosing between a PLUS loan with
an 8.5% fixed rate and a variable-rate
home-equity line of credit should take
a closer look at the latter, says Carpenter. The average rate for equity lines
was recently 7.67%, and interest is
deductible.
With rates fixed on Stafford loans,
private loans, which are issued at
variable rates, could someday end up
costing less than Staffords. Sallie Mae
(www.salliemae.com), the largest of the
student-loan companies, offers private
loans at the prime rate—lately 7.5%—
with no fees for borrowers who have a
good credit history.
Even if rates head south, borrowers
“should exhaust federal loans first,”
says Sallie Mae spokeswoman Martha
Holler. Unlike private loans, payments
on those loans can be extended, deferred or forgiven in certain cases.

As for the other provisions of the Deficit Reduction Act,
they represent “a mixed bag” for undergraduates, says Brenner. For Stafford
loans, the law boosts the maximum
amount you can borrow in each of the
first two years of college (the total
amount remains the same), phases out
origination fees and expands Pell
Grants for math and science students.
Married couples will no longer be able
to consolidate loans taken out separately into a single loan. And, as of July 1,
students can no longer consolidate
Staffords while they’re still in school.
But Brenner says the changes
“should in no way discourage American
families from applying for the college
of their choice.” There’s plenty of money for students who need it, he says,
and federally sponsored loans remain
“a hell of a deal.”

A mixed bag.

BUSINESS MATH ISSUE
Kiplingers © 2006

The Deficit Reduction Act of 2005 is too complicated for students needing loans.
1. List the key points of the article and information to support your position.
2. Write a group defense of your position using math calculations to support your view.

292

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Business Math Scrapbook
with Internet Application

The Business Math Scrapbook with Internet Application provides realworld applications at the end of the chapters. They can be assigned at your
discretion to give students an opportunity to apply the chapter theory to real
life business situations and to see the importance of what they’re learning.
(p. 63)

Video Cases on DVD

There are seven video cases applying business math concepts to real companies
such as Hotel Monaco, Louisville Slugger, American President Lines, Washburn
Guitars, Online Banking, Buycostumes.com, and Federal Signal Corporation.
Video clips are included on the student DVD. Some background case information
and assignment problems incorporating information on the companies are
included at the end of Chapters 6, 7, 8, 9, 11, 14, 16, and 21.

Slater’s Business
Math Scrapbook
with Internet Application
Putting Your Skills to Work

PROJECT A
What is the total cost of a Bentley
boat? Prove your answer using
fractions.

DVD

Video Case
BUYCOSTUMES.COM

As a child, Jalem Getz, the CEO of Buycostumes.com put little thought into his Halloween costumes. Now he thinks
about costumes all year long.
Jalem Getz founded online business Buycostumes in a
warehouse in the Milwaukee suburbs in 1999 taking advantage of Wisconsin’s central U.S. location and cheap rent.
Getz used to dislike the lack of seasons in his native
California. Now, he uses the extreme seasonality of the
Halloween business to turn a big profit.
The company got its start as brick-and-mortar retail business owned by Getz and partner Jon Majdoch. While still in
their early 20s, the two began operating a chain of seasonal
Halloween Express franchise stores, and then branched out
into a couple of lamp and home accessory shops.
In 2001, the company changed its name to Buyseasons,
Inc. to reflect its new broader focus. “Rather than just focus
on one season, we target consumers in different seasons,”
said Jalem Getz. The Buycostumes name is still in broad use.
Being an e-tailer means not having to open a retail
space for just two months of the year, or stock other items.
Money saved on storefronts goes to maintaining a stock of
10,000 Halloween items – 100 times what most retailers
carry for the season.
“Our selection sets us apart,” Getz said. “A lot of customers are looking for something unique, by having that

large selection we immediately build that additional goodwill.”
The key to Buyseasons’ success limiting the choice of
merchandise to items that can’t readily be found in neighborhood stores. That means less price competition and higher
margins for Byseasons, which has been maintaining a 47.5
percent gross margin rate on the buycostumes.com site.
In July 2006, Liberty Media announced plans to acquire
Buycostumes.com Inc. 500 company, for an undisclosed
sum. Getz will stay on as CEO.
Buycostumes.com is the biggest online seller of costumes. It was ranked on October 2005 in Inc. magazine as
the 75th –fastest growing U.S. private firm, with revenue of
$17.6 million last year and three-year growth of 1,046 percent. Sales this year are expected to hit $25 million to $28
million, according to Getz.
Other online Halloween firms also predicted double-digit
growth in 2005 – according to a forecast by the National
Retail Federation the entire industry would have a 5% gain,
leading to a record $3.3 billion in sales for the entire industry.
BuySeasons’ sales reached nearly $30 million in 2005,
Getz said, up from $17.6 million in 2004. The company’s
sales are expected to post 50% annual growth over the next
three year. The company bills itself as the world’s largest
Internet retailer of Halloween costumes and accessories.

2005
Wall Street Journal ©

site
xt Web
e
: See te
Projects later9e) and Th uide.
/s
Internet
eG
m
rc
co
ou
e.
es
hh
R
(www.m Math Internet
s
Busines

PROBLEM

1

The video stated the shipment of packages will increase from
a normal 500 packages per day to as many as 30,000 packages per day. Phone calls would increase from 1,600 per
63
week to 30,000 a week. (a) What is the percent of increase
in packages per day? Round to the nearest hundredth percent. (b) What is the percent of increase in phone calls per
week?
PROBLEM

2

The video advertises the “Mrs. Franklin Adult” costume with
a retail value of $149.99 and Buycostumes.com price of
$99.99. The “American Revolutionary Adult” costume with
a retail value $314.99 and Buycostumes.com price of
$239.99. (a) What is the dollar amount of savings achieved
by purchasing on-line for each costume? (b) What is the percent savings by purchasing on-line for each costume? Round
to the nearest hundredth percent.
PROBLEM

3

On March 26, 2006, the Milwaukee Journal Sentinel reported BuySeasons, which now leases 81,000 square feet in a
business park, wanted to move to a 200,000-square-foot
building. The May 3, 2006 issue reported the Zoning,
Neighborhoods & Development Committee voted 3-1 to

recommend the sale of 9.2 acres in Menomonee Valley
Industrial Center to house a new headquarters for BuySeasons,
operative of Buycostumes.com., at a price of $110,000 per
acre. (a) What would be the percent increase in space for
BuySeasons? Round to the nearest hundredth percent.
(b) What would be the total price for the land?
PROBLEM

4

In 2007, the company expects to have just over 600 seasonal employees. The number of seasonal employees is
expected to exceed 800 in 2008 and 900 in 2009. In
2007, the company would employ 90 full employees, 126 in
2008, and 161 in 2009. (a) Complete a trend analysis of
seasonal employees for the three years. (b) Complete a trend
analysis of full time employees for the three years using
2007 as the base year. Round to the nearest whole percent.
PROBLEM

5

On October 30, 2006, USA Today reported on the booming
number of young adults who treat themselves to Halloween
fun. The 18- to 24-year old group is spending an average of
$30.38 on costumes this year, a 38% increase over 2005,
according to the National Federation and BIGresearch. Those
25 to 34 will spend an average of $31.33 up 17%. National
Costumers Association President Debbie Lyn Owens says college students suiting up for parties are fueling much of the

410

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Supplements Package
Business Math Handbook

This reference guide contains all tables found in the text and is
included free with the text.

Web site and Online
Learning Center

The Business Math Web site at www.mhhe.com/slater9e offers an interactive
environment for teachers and students. The instructor section contains
text updates, supplement information, and teaching support including the
electronic version of the Instructor’s Resource Guide. It includes PageOut—a
powerful, easy-to-use tool that allows you to produce professional course
Web pages.
The Online Learning Center takes the pedagogical features and
supplements of the book and places them online. It includes interactive
self-grading quizzes, PowerPoint lectures, chapter outlines, teaching tips,
and more. Student material includes practice quizzes, glossary, self-paced
worksheets, and much more.
New to the Ninth Edition—self-grading quizzes, PowerPoint lectures,
and chapter summary practice test review videos by the author can be
downloaded by students to their iPods.
All of this content is also available on cartridges for local use on WebCT
or Blackboard.

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Business Math Internet
Resource Guide

The Business Math Internet Resource
Guide will take students online and
show them and you interesting source
materials for business math. Following
an introduction on how to use the
Internet, each chapter of the book has
specific sites listed and a description
of what students will find there.
There are also projects listed for each
chapter relating to the Internet.
Included on Student DVD-ROM.

DVD-ROM

Students can use this tool on their
computers or home DVD player to
see and hear how the author solves
all the practice quizzes and Summary
Practice Tests in the text. Students
can also refer to the DVD-ROM for
PowerPoint lectures, self-grading
practice quizzes, Excel Templates, the
Internet Resource Guide, and Web
links. Video cases apply business
math concepts to real companies such
as Hotel Monaco, Louisville Slugger,
and others.

Instructor’s Resource
CD-ROM

The Instructor’s Resource CD-ROM contains the Test Bank, E-Z Test
computerized testing system, PowerPoint Lecture Slides, Instructor’s Resource
Guide, and solutions files.

Instructor’s Resource
Guide

This resource manual includes:
• Syllabus Preparation; Self-Paced Syllabus; Student Progress Chart
• Integrating the Electronic Calculator; Suggestions for Using Computers and
Videos
• Suggestions for Regrouping Chapters
• Worked out Solutions for Extra Practice Quizzes
• Suggestions on Teaching Using the Business Math Internet Resource Guide
• Tips on Teaching Group Activities with Kiplinger’s Personal Finance
magazine
• Your Course versus Math Anxiety
• Sample Civil Service Exam with worked-out solutions
• Insight into Proportions supplement
• Excel Template Fact Sheet
• Check Figures for even-numbered end-of-chapter drill and word problems
• Appendix B Solutions (Chapters 13–22)
Each chapter includes:








Teaching Tips from Jeff Slater
Lecture Outline
The Pocket Calculator Workshop
Suggested Solution to Critical Thinking Discussion Questions
Teacher’s Guide to Kiplinger Group Activity
Additional Word Problems (not in the text)
Worked-Out Solutions to Practice Quiz found in the Student Solutions
Manual and Study Guide
• Vocabulary Crossword Puzzles with solutions

T–13

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Excel Workbook

/Volumes/111/MHIY031/mhsLa9%0/sLa9fm

The Excel Workbook is available as a
shrinkwrapped package with the text.
This workbook instructs your students in
constructing their own spreadsheets. It
includes business topics such as inventory,
interest, markup, and annuities using
problems from the text. The templates are on
the student DVD-ROM and are available for
selected end-of-chapter problems designated
with an Excel logo. Students can run these
templates as is or add their own data. The
DVD also includes an interest table feature
that allows you to input any percentage rate
and terms. The program will then generate table values. Included on Student
DVD-ROM.

Calculator Guides
Financial Calculator Guide

This guide covers using the HP 10BII and TI BAII PLUS financial calculators for
Chapters 7, 8, and 10 through 15 in Practical Business Math Procedures. Many
of the examples and practical quiz problems are illustrated. Selected end-ofchapter problems are also illustrated. This guide is divided into two sections.
One section is devoted to the HP 10BII calculator and the other section covers
the TI BAII PLUS calculator, also providing brief introductions to using each
model.

Electronic Calculator
Guide with Computer
Applications

This manual coordinates Practical Business Math Procedures applications
with instruction in the 10-key calculator and computer keypad. It also reviews
the touch method, includes speed drills, and helps students apply new skills
to business math word problems. An introduction to Excel spreadsheets and
how to enter data in spreadsheets is included.

TI-83/TI-84 Graphing
Calculator Guide

This new updated and enhanced supplement is now found both online and in
print, available for packaging with the text. For every chapter covered there
are key strokes with notes on how to use the graphing calculator, Practice
Sets and Problems, as well as coverage on how to solve the Summary Practice
Tests.

Student Solutions Manual
and Study Guide

This supplement provides completely worked-out solutions to selected end-ofchapter drill and word problems, plus additional word problems and practice
quizzes for student reinforcement. The manual includes the Study Guide
which provides self-paced worksheets that review chapter material. The
worksheets cover vocabulary, theory and math applications, as well as extra
word problem quizzes and a section on how to use the calculator.

ALEKS for Business Math

ALEKS (Assessment and Learning
in Knowledge Spaces) is an artificial
intelligence based system, which, acting
much like a human tutor, can provide
individualized assessment, practice, and
learning. By assessing your knowledge,
ALEKS focuses clearly on what you are
ready to learn next and helps you master
the course content more quickly and
clearly. You can visit ALEKS at
www.business.aleks.com.

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McGraw-Hill’s Homework
Manager™ and Homework
Manager Plus™

Homework Manager is an online homework management system allowing
you to assign select end-of-chapter problems and exercises to your students.
Homework Manager’s assignments are automatically graded for you and
instant feedback is provided directly to your students.
Some of Homework Manager’s problems are programmed with algorithms
that create new versions of the problem by generating new data for select
variables and keeping the structure of the problem intact. In effect, you have
an unlimited number of problems.
Homework Manager is Web-based, so there is no “setup” as such, no
custom software installation is needed, and the application is hosted on
our servers, not yours; all you need to do is establish your user account by
entering your name and course number. The textbook problems are sorted
by chapter, making it easy to browse through and pick the ones you want to
assign. The online grade book is also very easy to use.

Comprehensive Testing
Package

The Manual of Tests contains four optional, pre-formatted exams per chapter.
The computerized testing system featuring E-Z Test Software is networkable
for LAN test administration, online, and is included on the Instructor’s CDROM. Tests and Quizzes can also be printed for your standard delivery or
posted to a Web site for student access.

T–15

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Alternate Choice
Practical Business Math
Procedures, Brief Ninth
Edition

T–16

The Brief Edition of Practical Business Math Procedures is modified, not
just shortened. This is the ideal text for a balanced, shorter business math
course. The teaching aids have also been revised to ensure your course
flows smoothly and all of your teaching objectives are met. The Brief Edition
includes Chapters 1–12 from the Ninth Edition, with modifications to
Chapter 8.
Note: DVD comes with the Brief Edition.

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Page 1

CHAPTER

1

Whole
Numbers; How
to Dissect and
Solve Word
Problems

LEARNING UNIT OBJECTIVES
LU 1–1: Reading, Writing, and Rounding Whole Numbers
• Use place values to read and write numeric and verbal whole
numbers (p. 3).
• Round whole numbers to the indicated position (pp. 4–5).
• Use blueprint aid for dissecting and solving a word problem (p. 6).

LU 1–2: Adding and Subtracting Whole Numbers
• Add whole numbers; check and estimate addition
computations (p. 8).
• Subtract whole numbers; check and estimate subtraction
computations (pp. 9–10).

LU 1–3: Multiplying and Dividing Whole Numbers
• Multiply whole numbers; check and estimate multiplication
computations (pp. 12–13).
• Divide whole numbers; check and estimate division computations
(pp. 14–15).

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

People of all ages mak e personal b usiness decisions based on the answers to number questions. Numbers also determine most of the b usiness decisions of companies. F or example,
click on your computer , go to the website of a compan y such as Home Depot and note the
importance of numbers in the compan y’s business decision-making process.
The follo wing Wall Street Journal clipping “Home Depot Plans Gas-Mart F ormat in
Four-Store Test” announces plans to test con venience stores with gasoline stations located in
parking lots of four of its Nashville, Tennessee, stores:

Wall Street Journal © 2005

Companies often follo w a general problem-solving procedure to arri ve at a change in
company polic y. Using Home Depot as an e xample, the follo wing steps illustrate this
procedure:
Step 1. State the problem(s).
Step 2. Decide on the best methods

to solve the problem(s).
Step 3. Does the solution mak e
sense?
Step 4. Evaluate the results.

Growth strate gy is to continue dri ve for top-line
growth.
Add convenience stores to adjacent Home Depot
stores (some with car w ashes).
Good use of unproducti ve space, and customers
can save time shopping.
Home Depot will e valuate the four -store test cases.

Your study of numbers be gins with a re view of basic computation skills that focuses on
speed and accurac y. You may think, “But I can use my calculator .” Even if your instructor
allows you to use a calculator , you still must kno w the basic computation skills. You need
these skills to kno w what to calculate, how to interpret your calculations, how to mak e estimates to recognize errors you made in using your calculator , and how to mak e calculations
when you do not ha ve a calculator. (The Student Solutions Manual and Study Guide and the
text website e xplain how to use calculators.)
The United States’ numbering system is the decimal system or base 10 system. Your
calculator gives the 10 single-digit numbers of the decimal system—0, 1, 2, 3, 4, 5, 6, 7, 8,
and 9. The center of the decimal system is the decimal point. When you ha ve a number with
a decimal point, the numbers to the left of the decimal point are whole numbers and the numbers to the right of the decimal point are decimal numbers (discussed in Chapter 3). When you
have a number without a decimal, the number is a whole number and the decimal is assumed
to be after the number .
This chapter discusses reading, writing, and rounding whole numbers; adding and subtracting whole numbers; and multiplying and di viding whole numbers.

Learning Unit 1–1: Reading, Writing, and Rounding Whole Numbers
Girl Scout cookies are bak ed throughout the year . More than 200 million box es of cookies are
produced annually. This means that approximately 2 billion, 400 million cookies are produced. Numerically, we can write this as 2,400,000,000.
Now let’s begin our study of whole numbers.

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Page 3

3

Learning Unit 1–1

Reading and Writing Numeric and Verbal
Whole Numbers
The decimal system is a place-value system based on the powers o f
10. Any whole number can be written with the 10 digits of the
decimal system because the position, or placement, of the digits in
a number gives the value of the digits.
To determine the value of each digit in a number , we use a
place-value chart (Figure 1.1) that divides numbers into named
groups of three digits, with each group separated by a comma. To
separate a number into groups, you begin with the last digit in the
number and insert commas every three digits, moving from right t o
left. This divides the number into the named groups (units, thousands, millions, billions, trillions) shown in the place-value chart.
Within each group, you have a ones, tens, and hundreds place.
Keep in mind that the leftmost group may have fewer than three
digits.
In Figure 1.1, the numeric number 1,605,743,891,412 illustrates place values. When you study the place-value chart, you can
see that the value of each place in the chart is 10 times the value o f
the place to the right. We can illustrate this by analyzing the last
four digits in the number 1,605,743,891,412 :

Mona Sullivan, Courtesy Girl Scouts USA

1,412 (1 1,000) (4 100) (1 10) (2 1)
So we can also say , for example, that in the number 745, the “7” means seven hundred
(700); in the number 75, the “7” means 7 tens (70).
To read and write a numeric number in verbal form, you begin at the left and read each
group of three digits as if it were alone, adding the group name at the end (except the last
units group and groups of all zeros). Using the place-value chart in Figure 1.1, the number
1,605,743,891,412 is read as one trillion, six hundred five billion, seven hundred forty-three
million, eight hundred ninety-one thousand, four hundred twelve. You do not read zeros.
They fill vacant spaces as placeholders so that you can correctly state the number values.
Also, the numbers twenty-one to ninety-nine must have a hyphen. And most important, when
you read or write whole numbers in verbal form, do not use the word
and. In the decimal
system, and indicates the decimal, which we discuss in Chapter 3.
By reversing this process of changing a numeric number to a verbal number , you can
use the place-value chart to change a verbal number to a numeric number . Remember that y ou
must keep track of the place value of each digit. The place values of the digits in a number
determine its total value.
Before we look at how to round whole numbers, we should look at how to convert a n umber indicating parts of a whole number to a whole number . We will use the Girl Scout cooki es
as an example.

Whole Number Groups

1.1

Millions

Units

Hundred billions

Ten billions

Billions

Comma

Hundred millions

Ten millions

Millions

Comma

Hundred thousands

Ten thousands

Thousands

Comma

Hundreds

Tens

Ones (units)

Decimal Point

Thousands

Comma

Billions

Trillions

Trillions

Ten trillions

Whole number place-value chart

Hundred trillions

FIGURE

1

,

6

0

5

,

7

4

3

,

8

9

1

,

4

1

2

.

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

The 2,400,000,000 Girl Scout cookies could be written as 2.4 billion cookies.
This
amount is two billion plus four hundred million of an additional billion. The following steps
explain how to convert these decimal numbers into a regular whole number:
CONVERTING PARTS OF A MILLION, BILLION, TRILLION, ETC., TO A REGULAR WHOLE NUMBER
Step 1.

Drop the decimal point and insert a comma.

Step 2.

Add zeros so the leftmost digit ends in the word name of the amount you want
to convert. Be sure to add commas as needed.

Convert 2.4 billion to a regular whole number .

EXAMPLE
Step 1.

Step 2.

2.4 billion
2,4

Change the decimal point to a comma.

2,400,000,000

Add zeros and commas so the whole number indicates billion.

Rounding Whole Numbers
Many of the whole numbers you read and hear are rounded numbers. Government statistics
are usually rounded numbers. The financial reports of companies also use rounded numbers.
All rounded numbers are approximate numbers. The more rounding you do, the more you
approximate the number .
Rounded whole numbers are used for many reasons. With rounded whole numbers you
can quickly estimate arithmetic results, check actual computations, report numbers that change
quickly such as population numbers, and make numbers easier to read and remember .
Numbers can be rounded to any identified digit place value, including the first digit of a
number (rounding all the way). To round whole numbers, use the following three steps:
ROUNDING WHOLE NUMBERS
Step 1.

Identify the place value of the digit you want to round.

Step 2.

If the digit to the right of the identified digit in Step 1 is 5 or more, increase
the identified digit by 1 (round up). If the digit to the right is less than 5, do not
change the identified digit.

Step 3.

Change all digits to the right of the rounded identified digit to zeros.

EXAMPLE 1 Round 9,362 to the nearest hundred.
Step 1.

9,362

Step 2.

The digit 3 is in the hundreds place value.
The digit to the right of 3 is 5 or more (6). Thus, 3, the identified digit in
Step 1, is now rounded to 4. You change the identified digit only if the
digit to the right is 5 or more.

9,462
Step 3.

9,400

Change digits 6 and 2 to zeros, since these digits are to the right of 4, the
rounded number.

By rounding 9,362 to the nearest hundred, you can see that 9,362 is closer to 9,400 than
to 9,300.
We can use the following Wall Street Journal clipping “Food for Thought” to illustrate
rounding to the nearest hundred. For example, rounded to the nearest hundred, the 560 calories
of Big Mac rounds to 600 calories, whereas the 290 calories of McDonald’
s Egg McMuf fin
rounds to 300 calories.

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Page 5

Learning Unit 1–1

The McGraw-Hill Companies, John Flournoy
photographer

5

Wall Street Journal © 2005

Next, we show you how to round to the nearest thousand.
EXAMPLE 2 Round 67,951 to the nearest thousand.
Step 1.

67,951

Step 2.

The digit 7 is in the thousands place value.
Digit to the right of 7 is 5 or more (9). Thus, 7, the identified digit in
Step 1, is now rounded to 8.

68,951
Step 3.

68,000

Change digits 9, 5, and 1 to zeros, since these digits are to the right of 8,
the rounded number.

By rounding 67,951 to the nearest thousand, you can see that 67,951 is closer to 68,000 than
to 67,000.
Now let’s look at rounding all the way. To round a number all the way , you round to the
first digit of the number (the leftmost digit) and have only one nonzero digit remaining in the
number.
EXAMPLE 3 Round 7,843 all the way.
Step 1.

7,843

Step 2.

Identified leftmost digit is 7.
Digit to the right of 7 is greater than 5, so 7 becomes 8.

8,843
Step 3.

8,000

Change all other digits to zeros.

Rounding 7,843 all the way gives 8,000.
Remember that rounding a digit to a specific place value depends on the degree of accuracy you want in your estimate. For example, 24,800 rounds all the way to 20,000 because the
digit to the right of 2 is less than 5.
This 20,000 is 4,800 less than the original 24,800. You
would be more accurate if you rounded 24,800 to the place value of the identified digit 4,
which is 25,000.
Before concluding this unit, let’ s look at how to dissect and solve a word problem.

How to Dissect and Solve a Word Problem
As a student, your author found solving word problems difficult. Not knowing where to begin
after reading the word problem caused the dif ficulty. Today, students still struggle with word
problems as they try to decide where to begin.
Solving word problems involves organization and persistence. Recall how persistent you
were when you learned to ride a two-wheel bike. Do you remember the feeling of suc cess you
experienced when you rode the bike without help? Apply this persistence to word problems.

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

Do not be discouraged. Each person learns at a dif ferent speed. Your goal must be to FINISH
THE RACE and experience the success of solving word problems with ease.
To be organized in solving word problems, you need a plan of action that tells you where
to begin—a blueprint aid. Like a builder , you will refer to this blueprint aid constantly until
you know the procedure. The blueprint aid for dissecting and solving a word problem fol lows.
Note that the blueprint aid serves an important function— it decreases your math anxiety.
Blueprint Aid for Dissecting and Solving a Word Problem
The facts

Solving for?

Steps to take

Key points

Now let’s study this blueprint aid. The first two columns require that you read the word
problem slowly. Think of the third column as the basic information you must know or calc ulate before solving the word problem. Often
this column contains formulas that provide
the foundation for the step-by-step problem
solution. The last column reinforces the key
points you should remember .
It’s time now to try your skill at using
the blueprint aid for dissecting and solving a
word problem.
The Word Problem On the 100th anniversary of Tootsie Roll Industries, the company
reported sharply increased sales and profits.
Sales reached one hundred ninety-four million
dollars and a record profit of twenty-two million, five hundred fifty-six thousand dollars.
The company president requested that you
round the sales and profit figures all the way.
Study the following blueprint aid and
note how we filled in the columns with the
information in the word problem. You will
find the or ganization of the blueprint aid
most helpful. Be persistent! You can dissect
and solve word problems! When you are
finished with the word problem, make sure
the answer seems reasonable.

Teri Stratford

The facts

Solving for?

Steps to take

Key points

Sales: One hundred
ninety-four million
dollars.

Sales and profit
rounded all the way.

Express each verbal
form in numeric form.
Identify leftmost digit
in each number.

Rounding all the way
means only the leftmost digit will remain.
All other digits
become zeros.

Profit: Twenty-two
million, five hundred
fifty-six thousand
dollars.
Steps to solving problem

1. Convert verbal to numeric.
One hundred ninety-four million dollars
Twenty-two million, five hundred fifty-six thousand dollars

$194,000,000
$ 22,556,000

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Learning Unit 1–1

7

2. Identify leftmost digit of each number.
$194,000,000
$22,556,000
3. Round.
$200,000,000

$20,000,000

Note that in the final answer , $200,000,000 and $20,000,000 have only one nonzero digit.
Remember that you cannot round numbers expressed in verbal form. You must convert
these numbers to numeric form.
Now you should see the importance of the information in the third column of the blueprint aid. When you complete your blueprint aids for word problems, do not be concerned i f
the order of the information in your boxes does not follow the order given in the text boxes.
Often you can dissect a word problem in more than one way .
Your first Practice Quiz follows. Be sure to study the paragraph that introduces the Practice Quiz.

LU 1–1

PRACTICE QUIZ

Complete this Practice Quiz
to see how you are doing

DVD

At the end of each learning unit, you can check your progress with a Practice Quiz. If you had
difficulty understanding the unit, the Practice Quiz will help identify your area of weakness.
Work the problems on scrap paper . Check your answers with the worked-out solutions that
follow the quiz. Ask your instructor about specific assignments and the videos available on
your DVD for each chapter Practice Quiz.
Write in verbal form:
a. 7,948
b. 48,775
c. 814,410,335,414
Round the following numbers as indicated:

1.
2.

Nearest
ten

Nearest
hundred

Nearest
thousand

Rounded all
the way

92
b. 745
c. 8,341
d. 4,752
Kellogg’s reported its sales as five million, one hundred eighty-one thousand dollars.The
company earned a profit of five hundred two thousand dollars. What would the sales and
profit be if each number were rounded all the way? ( Hint: You might want to draw the
blueprint aid since we show it in the solution.)
a.

3.


1.

2.
3.

Solutions
a. Seven thousand, nine hundred forty-eight
b. Forty-eight thousand, seven hundred seventy-five
c. Eight hundred fourteen billion, four hundred ten million, three hundred thirty-five
thousand, four hundred fourteen
a. 90
b. 700
c. 8,000
d. 5,000
Kellogg’s sales and profit:

The facts

Solving for?

Steps to take

Key points

Sales: Five million,
one hundred eightyone thousand dollars.

Sales and profit
rounded all the way.

Express each verbal
form in numeric form.
Identify leftmost digit
in each number.

Rounding all the way
means only the leftmost digit will remain.
All other digits
become zeros.

Profit: Five hundred
two thousand dollars.

Steps to solving problem
1. Convert verbal to numeric.
Five million, one hundred eighty-one thousand
Five hundred two thousand
2. Identify leftmost digit of each number.
$5,181,000
$502,000
3. Round.
$5,000,000

$500,000

$5,181,000
$ 502,000

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

LU 1–1a

EXTRA PRACTICE QUIZ

Need more practice? Try this
Extra Practice Quiz (check
figures in Chapter Organizer,
p. 19)

1.
2.

3.

Write in verbal form:
a. 8,682
b. 56,295
c. 732,310,444,888
Round the following numbers as indicated:
Nearest
Nearest
Nearest
Rounded all
ten
hundred
thousand
the way
a. 43
b. 654
c. 7,328
d. 5,980
Kellogg’s reported its sales as three million, two hundred ninety-one thousand dollars.
The company earned a profit of four hundred five thousand dollars.What would the sales
and profit be if each number were rounded all the way?

Learning Unit 1–2: Adding and Subtracting Whole Numbers
Did you know that the cost of long-term care in nursing homes varies in different locations?
The following Wall Street Journal clipping “Costly Long-Term Care” gives the daily top 1 0
rates and lowest 10 rates of long-care costs reported in various cities. For example, note the
difference in daily long-term care costs between Alaska and Shreveport, Louisiana:
$561
Alaska:
Sherveport: 99
$462

Wall Street Journal © 2006

If you may have long-term nursing care in your future or in the future of someone in your
family, be sure to research the cost (and conditions) of long-term care in various locations.
This unit teaches you how to manually add and subtract whole numbers. When you least
expect it, you will catch yourself automatically using this skill.

Addition of Whole Numbers
To add whole numbers, you unite two or more numbers called addends to make one numb er
called a sum, total, or amount. The numbers are arranged in a column according to their place
values—units above units, tens above tens, and so on. Then, you add the columns of num bers
from top to bottom. To check the result, you re-add the columns from bottom to top. This
procedure is illustrated in the steps that follow .

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Learning Unit 1–2

9

ADDING WHOLE NUMBERS
Step 1.

Align the numbers to be added in columns according to their place values,
beginning with the units place at the right and moving to the left (Figure 1.1).

Step 2.

Add the units column. Write the sum below the column. If the sum is more than
9, write the units digit and carry the tens digit.

Step 3.

Moving to the left, repeat Step 2 until all place values are added.

EXAMPLE

2 11

1,362
Adding Checking
5,913
top
8,924
bottom
6,594

bottom to
to top

22,793

Alternate check
Add each column as a
separate total and then
combine. The end
result is the same.
1,362
5,913
8,924
6,594
13
18
26
20
22,793

How to Quickly Estimate Addition by Rounding All the Way
In Learning Unit 1–1, you learned that rounding whole numbers all the way gives quick arithmetic estimates. Using the following Wall Street Journal clipping “Hottest Models,” note
how you can round each number all the way and the total will not be rounded all the way .
Remember that rounding all the way does not replace actual computations, but it is help ful in
making quick commonsense decisions.
Hottest Models

Model

Days on Lot

Average Price

5

$25,365

Scion tC

9

$18,278

Scion xB

10

$15,834

BMW 7 Series

13

$80,507

Scion xA

14

$14,532

Lexus RX 400h

14

$50,131

Honda Odyssey

16

$31,001

Toyota Corolla

16

$16,290

Mazda MX-5

17

$25,380

Lexus RX 330

17

$39,467

Saturn VUE

17

$22,553

Toyota Prius

Rounded all the way
$ 30,000
Rounding all the way
means each number has
20,000
only one nonzero digit.
20,000
80,000
10,000
50,000
30,000
20,000
30,000
40,000
20,000
$350,000

Note: The final answer
could have more than
one nonzero digit since
the total is not rounded
all the way.

Subtraction of Whole Numbers
Subtraction is the opposite of addition. Addition unites numbers; subtraction takes one number away from another number. In subtraction, the top (lar gest) number is the minuend. The
number you subtract from the minuend is the subtrahend, which gives you the difference
between the minuend and the subtrahend. The steps for subtracting whole numbers follow .

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

SUBTRACTING WHOLE NUMBERS
Step 1.

Align the minuend and subtrahend according to their place values.

Step 2.

Begin the subtraction with the units digits. Write the difference below the
column. If the units digit in the minuend is smaller than the units digit in the
subtrahend, borrow 1 from the tens digit in the minuend. One tens digit is
10 units.

Step 3.

Moving to the left, repeat Step 2 until all place values in the subtrahend are
subtracted.

EXAMPLE The following Wall Street Journal clipping “Big Bills Ahead” illustrates the
subtraction of whole numbers:

What is the dif ference in cost between the
Stamford, Connecticut, and the Miami, Florida,
assisted-living facilities? As shown below , you
can use subtraction to arrive at the $2,987
difference.
12

3 2 12

$4,3 27
1,340
$2,987
Check

Minuend (larger number)
Subtrahend
Difference
$2,987
1,340
$4,327

Wall Street Journal © 2005

In subtraction, borrowing from the column at the left is often necessary . Remember
that 1 ten 10 units, 1 hundred 10 tens, and 1 thousand 10 hundreds.
Step 1. In the above example, the 0 in the subtrahend of the rightmost column (ones or units

column) can be subtracted from the 7 in the minuend to give a dif ference of 7. This
means we do not have to borrow from the tens column at the left. However , in the
tens column, we cannot subtract 4 in the subtrahend from 2 in the minuend, so we
move left and borrow 1 from the hundreds column. Since 1 hundred 10 tens, we
have 10 2, or 12 tens in the minuend. Now we can subtract 4 tens in the subtrahend from 12 tens in the minuend to give us 8 tens in the dif ference.
Step 2. Since we borrowed 1 hundred from our original 3 hundred, we now have 2 hundred
in the minuend. The 3 hundred in the subtrahend will not subtract from the 2 hun dred
in the minuend, so again we must move left. We take 1 thousand from the 4 thousand in the thousands column. Since 1 thousand is 10 hundreds, we have 10 2, or
12 hundreds in the hundreds column. The 3 hundred in the subtrahend subtracted
from the 12 hundred in the minuend gives us 9 hundred in the dif ference. The 1 thousand in the subtrahend subtracted from the 3 thousand in the minuend gives 2 thousand. Our total dif ference between the subtrahend $1,340 and the minuend $4,327 i s
$2,987 as proved in the check.
Checking subtraction requires adding the difference ($2,987) to the subtrahend ($1,340)
to arrive at the minuend ($4,327). The Stamford, Connecticut, assisted-living facility costs
$2,987 more than the Miami, Florida, assisted-living facility .

How to Dissect and Solve a Word Problem
Accurate subtraction is important in many business operations. In Chapter 4 we discuss the
importance of keeping accurate subtraction in your checkbook balance. Now let’ s check your
progress by dissecting and solving a word problem.

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Learning Unit 1–2

11

The Word Problem Hershey’s produced 25 million Kisses in one day . The same day , the

company shipped 4 million to Japan, 3 million to France, and 6 million throughout the United
States. At the end of that day , what is the company’ s total inventory of Kisses? What is the
inventory balance if you round the number all the way?
The facts

Solving for?

Steps to take

Key points

Produced: 25 million.

Total Kisses left
in inventory.

Total Kisses produced

Minuend Subtrahend
Difference.

Inventory balance
rounded all the
way.

Total Kisses left in
inventory.

Shipped:
Japan, 4 million;
France, 3 million;
United States, 6 million.

Total Kisses shipped

Rounding all the way
means rounding to last
digit on the left.

Steps to solving problem
1. Calculate the total Kisses shipped.

Teri Stratford

4,000,000
3,000,000
6,000,000
13,000,000

2. Calculate the total Kisses left in inventory.

25,000,000
13,000,000
12,000,000

3. Rounding all the way.

Identified digit is 1. Digit to right of 1 is 2,
which is less than 5. Answer: 10,000,000 .

The Practice Quiz that follows will tell you how you are progressing in your study of
Chapter 1.

LU 1–2

PRACTICE QUIZ

Complete this Practice Quiz
to see how you are doing

DVD

1.

Add by totaling each separate column:
8,974
6,439
16,941

2.

Estimate by rounding all the way (do not round the total of estimate) and then do the
actual computation:
4,241
8,794
3,872

3.

Subtract and check your answer:
9,876
4,967

4.

Jackson Manufacturing Company projected its year 2003 furniture sales at $900,000.
During 2003, Jackson earned $510,000 in sales from major clients and $369,100 in sales
from the remainder of its clients.
What is the amount by which Jackson over
- or
underestimated its sales? Use the blueprint aid, since the answer will show the completed blueprint aid.


1.

Solutions
14
14
22
20
22,354

2. Estimate
4,000
9,000
4,000
17,000

Actual
4,241
8,794
3,872
16,907

3.

8 18 6 16

9,876
4,967
4,909

Check
4,909
4,967
9,876

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

Jackson Manufacturing Company over- or underestimated sales:

4.

The facts

Solving for?

Steps to take

Key points

Projected 2003
sales: $900,000.

How much were
sales over- or
underestimated?

Total projected sales

Projected sales
(minuend)

Major clients:
$510,000.

Total actual sales
Over- or
underestimated sales.

Actual sales
(subtrahend)
Difference.

Other clients:
$369,100.

Steps to solving problem
1. Calculate total actual sales.

$510,000
369,100
$879,100

2. Calculate overestimated or
underestimated sales.

$900,000
879,100
$ 20,900 (overestimated)

LU 1–2a

EXTRA PRACTICE QUIZ

Need more practice? Try this
Extra Practice Quiz (check
figures in Chapter Organizer,
p. 19)

1.

Add by totaling each separate column:
9,853
7,394
8,843

2.

Estimate by rounding all the way (do not round the total of estimate) and then do the
actual computation:
3,482
6,981
5,490

3.

Subtract and check your answer:
9,787
5,968

4.

Jackson Manufacturing Company projected its year 2008 furniture sales at $878,000.
During 2008, Jackson earned $492,900 in sales from major clients and $342,000 in
sales from the remainder of its clients. What is the amount by which Jackson over - or
underestimated its sales?

Learning Unit 1–3: Multiplying and Dividing Whole Numbers
At the beginning of Learning Unit 1–2, you learned how you would save $462 on the purchase of daily long-term care in a Shreveport, Louisiana, nursing home instead of in an Alaska
nursing home.
If you stay in the Alaska and Shreveport nursing homes for 5 days, the Alaska nursing
home would cost you $2,805, but the Shreveport nursing home would cost you $495, and y ou
would save $2,310:
Alaska:
$561 5 $2,805
Shreveport: 99 5 495
$2,310
If you divide $2,310 by 5, you will get the $462 dif
ference in price between Alaska
and Shreveport as shown at the beginning of Learning Unit 1–2.
This unit will sharpen your skills in two important arithmetic operations—multiplication
and division. These two operations frequently result in knowledgeable business decisions.

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Learning Unit 1–3

13

Multiplication of Whole Numbers—Shortcut to Addition
From calculating your purchase of 5 days of long-term care in Shreveport, you know that
multiplication is a shortcut to addition:
$99 5 $495

or

$99 $99 $99 $99 $99 $495

Before learning the steps used to multiply whole numbers with two or more digits, you
must learn some multiplication terminology .
Note in the following example that the top number (number we want to multiply) is
the multiplicand. The bottom number (number doing the multiplying) is the multiplier. The
final number (answer) is the product. The numbers between the multiplier and the product
are partial products. Also note how we positioned the partial product 2090. This number is
the result of multiplying 418 by 50 (the 5 is in the tens position). On each line in the partial
products, we placed the first digit directly below the digit we used in the multiplication
process.
EXAMPLE

Partial
products

Top number (multiplicand)
Bottom number (multiplier)
2 418
836
50 418 20,900
21,736
Product answer

418
52
836
20 90
21,736



We can now give the following steps for multiplying whole numbers with two or more
digits:
MULTIPLYING WHOLE NUMBERS WITH TWO OR MORE DIGITS
Step 1.

Align the multiplicand (top number) and multiplier (bottom number) at the
right. Usually, you should make the smaller number the multiplier.

Step 2.

Begin by multiplying the right digit of the multiplier with the right digit of the
multiplicand. Keep multiplying as you move left through the multiplicand. Your
first partial product aligns at the right with the multiplicand and multiplier.

Step 3.

Move left through the multiplier and continue multiplying the multiplicand.
Your partial product right digit or first digit is placed directly below the digit in
the multiplier that you used to multiply.

Step 4.

Continue Steps 2 and 3 until you have completed your multiplication process.
Then add the partial products to get the final product.

Checking and Estimating Multiplication
We can check the multiplication process by reversing the multiplicand and multiplier and then
multiplying. Let’s first estimate 52 418 by rounding all the way .
EXAMPLE

50
400
20,000

52
418
416
52
20 8
21,736

By estimating before actually working the problem, we know our answer should be about
20,000. When we multiply 52 by 418, we get the same answer as when we multiply
418 52—and the answer is about 20,000. Remember , if we had not rounded all the way ,
our estimate would have been closer . If we had used a calculator , the rounded estimate
would have helped us check the calculator ’s answer . Our commonsense estimate tells us
our answer is near 20,000—not 200,000.
Before you study the division of whole numbers, you should know (1) the multiplication shortcut with numbers ending in zeros and (2) how to multiply a whole number by a
power of 10.

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

MULTIPLICATION SHORTCUT WITH NUMBERS ENDING IN ZEROS
Step 1.

When zeros are at the end of the multiplicand or the multiplier, or both,
disregard the zeros and multiply.

Step 2.

Count the number of zeros in the multiplicand and multiplier.

Step 3.

Attach the number of zeros counted in Step 2 to your answer.

EXAMPLE

65,000
420

65
42
1 30
26 0
27,300,000

3 zeros
1 zero
4 zeros

No need to multiply rows
of zeros
65,000

420
00 000
1 300 00
26 000 0
27,300,000

MULTIPLYING A WHOLE NUMBER BY A POWER OF 10
Step 1.

Count the number of zeros in the power of 10 (a whole number that begins with
1 and ends in one or more zeros such as 10, 100, 1,000, and so on).

Step 2.

Attach that number of zeros to the right side of the other whole number to
obtain the answer. Insert comma(s) as needed every three digits, moving from
right to left.

EXAMPLE 99 10

99 100

99 0
990
9,9 00 9,900

99 1,000 99, 000 99,000

Add 1 zero
Add 2 zeros
Add 3 zeros

When a zero is in the center of the multiplier , you can do the following:
EXAMPLE

658
403
1 974
263 2䊐
265,174



3 658
1,974
400 658 263,200
265,174

Division of Whole Numbers
Division is the reverse of multiplication and a time-saving shortcut related to subtraction. F or
example, in the introduction to this learning unit, you determined that you would save $2,310
by staying for 5 days in a nursing home in Shreveport, Louisiana, versus Alaska. If you su btract $462—the difference between the cost of Alaska and Shreveport—5 times from the dif ference of $2,310, you would get to zero. You can also multiply $462 times 5 to get $2,310.
Since division is the reverse of multiplication, you can say that $2,310 5 = $462.
Division can be indicated by the common symbols and 冄 , or by the bar — in a fraction and the forward slant / between two numbers, which means the first number is divided b y
the second number . Division asks how many times one number (divisor) is contained in
another number (dividend). The answer, or result, is the quotient. When the divisor (numb er
used to divide) doesn’ t divide evenly into the dividend (number we are dividing), the result i s
a partial quotient, with the leftover amount the remainder (expressed as fractions in later
chapters). The following example illustrates even division (this is also an example of long
division because the divisor has more than one digit).

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Learning Unit 1–3

Quotient
Dividend

18
15冄270
15
120
120

EXAMPLE

Divisor

15

This example divides 15 into 27 once with 12 rem aining. The 0 in the dividend is brought
down to 12. Dividing 120 by 15 equals 8 with no remainder; that is, even division. The following example illustrates uneven division with a remainder (this is also an example of short
division because the divisor has only one digit).
24 R1
7冄 169
14
29
28
1

EXAMPLE

Remainder

Check
(7 24)
1
169
Divisor Quotient Remainder Dividend

Note how doing the check gives you assurance that your calculation is correct. When the
divisor has one digit (short division) as in this example, you can often calculate the division
mentally as illustrated in the following examples:
EXAMPLES

108
8冄864

16 R6
7冄118

Next, let’s look at the value of estimating division.
Estimating Division
Before actually working a division problem, estimate the quotient by rounding. This estimate
helps check the answer . The example that follows is rounded all the way . After you make an
estimate, work the problem and check your answer by multiplication.
EXAMPLE

36 R111
138冄 5,079
4 14
939
828
111

Estimate
50
100冄5,000

Check
138
36
828
4 14
4,968
111
5,079

Add remainder

Now let’s turn our attention to division shortcuts with zeros.
Division Shortcuts with Zeros
The steps that follow show a shortcut that you can use when you divide numbers with zeros.
DIVISION SHORTCUT WITH NUMBERS ENDING IN ZEROS
Step 1.

When the dividend and divisor have ending zeros, count the number of ending
zeros in the divisor.

Step 2.

Drop the same number of zeros in the dividend as in the divisor, counting from
right to left.

Note the following examples of division shortcut with numbers ending in zeros. Since
two of the symbols used for division are and 冄 , our first examples show the zero shortc ut
method with the symbol.

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

One ending zero

EXAMPLES

Dividend

Divisor

Drop 1 zero in dividend

95,000 10

95,000 9,500

95,000 100
95,000 1,000

95,000
95,000

950 Drop 2 zeros
95 Drop 3 zeros

In a long division problem with the 冄 symbol, you again count the number of ending zeros
in the divisor. Then drop the same number of ending zeros in the dividend and divide as usual.
EXAMPLE

6,500冄 88,000

Drop 2 zeros

65冄 880

13 R35
65冄 880
65
230
195
35

You are now ready to practice what you learned by dissecting and solving a word problem.

How to Dissect and Solve a Word Problem
The blueprint aid that follows will be your guide to dissecting and solving the following word
problem.
The Word Problem Dunkin’ Donuts sells to four dif ferent companies a total of $3,500

worth of doughnuts per week. What is the total annual sales to these companies? What is the
yearly sales per company? (Assume each company buys the same amount.) Check your
answer to show how multiplication and division are related.
The facts

Solving for?

Steps to take

Key points

Sales per week:
$3,500.

Total annual sales to
all four companies.
Yearly sales per
company.

Sales per week
Weeks in year (52)
Total annual sales.

Division is
the reverse of
multiplication.

Companies: 4.

Total annual sales
Total companies
Yearly sales per
company.

Steps to solving problem
1. Calculate total annual sales.

$3,500 52 weeks $182,000

2. Calculate yearly sales per company,

$182,000 4 $45,500
Check
$45,500 4 $182,000

It’s time again to check your progress with a Practice Quiz.

LU 1–3

PRACTICE QUIZ

Complete this Practice Quiz to
see how you are doing

DVD

1.

Estimate the actual problem by rounding all the way
check:
Actual
Estimate
Check
3,894
18

, work the actual problem, and

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Learning Unit 1–3

17

2.

Multiply by shortcut method:
77,000
1,800

4.

Divide by rounding all the way , complete the actual calculation, and check, showing
remainder as a whole number.
26冄5,325
Divide by shortcut method:
4,000冄 96,000
Assume General Motors produces 960 Chevrolets each workday (Monday through
Friday). If the cost to produce each car is $6,500, what is General Motors’ total cost for
the year? Check your answer.

5.
6.



3.

Multiply by shortcut method:
95 10,000

Solutions

1.

Estimate
4,000
20
80,000

2.
4.

77 18 1,386 5 zeros 138,600,000
Rounding
Actual
204 R21
166 R20
26冄5,325
30冄 5,000
30
52
2 00
125
1 80
104
200
21
180
20

5.
6.

Actual
3,894
18
31 152
38 94
70,092

Check
8 3,894 31,152
10 3,894 38,940
70,092

3. 95 4 zeros 950,000
Check
26 204 5,304
21
5,325

24
Drop 3 zeros 4冄 96
General Motors’ total cost per year:
The facts

Solving for?

Steps to take

Key points

Cars produced each
workday: 960.

Total cost per year.

Cars produced per
week 52 Total
cars produced per
year.

Whenever possible,
use multiplication
and division
shortcuts with zeros.
Multiplication can be
checked by division.

Workweek: 5 days.
Cost per car: $6,500.

Total cars produced
per year Total cost
per car Total cost
per year.

Steps to solving problem
1. Calculate total cars produced per week.

5 960 4,800 cars produced per week

2. Calculate total cars produced per year.

4,800 cars 52 weeks 249,600 total cars produced
per year

3. Calculate total cost per year.

249,600 cars $6,500 $1,622,400,000
(multiply 2,496 65 and add zeros)
Check
$1,622,400,000 249,600 $6,500 (drop 2 zeros
before dividing)

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

LU 1–3a

EXTRA PRACTICE QUIZ

Need more practice? Try this
Extra Practice Quiz (check
figures in Chapter Organizer,
p. 19)

1.

Estimate the actual problem by rounding all the way
check:
Actual
Estimate
Check
4,938
19

2.

Multiply by shortcut method:
86,000
1,900

4.

Divide by rounding all the way , complete the actual calculation, and check, showing
remainder as a whole number.
26冄6,394
Divide by the shortcut method:
3,000冄99,000
Assume General Motors produces 850 Chevrolets each workday (Monday through Friday). If the cost to produce each car is $7,000, what is General Motors’s total cost for the
year? Check your answer.

5.
6.

3.

, work the actual problem, and

Multiply by shortcut method:
86 10,000

CHAPTER ORGANIZER AND STUDY GUIDE
WITH CHECK FIGURES FOR EXTRA PRACTICE QUIZZES
Topic

Key point, procedure, formula

Example(s) to illustrate situation

Reading and writing numeric and
verbal whole numbers, p. 3

Placement of digits in a number gives the
value of the digits (Figure 1.1). Commas
separate every three digits, moving from
right to left. Begin at left to read and write
number in verbal form. Do not read zeros or
use and. Hyphenate numbers twenty-one to
ninety-nine. Reverse procedure to change
verbal number to numeric.

462
6,741

Rounding whole numbers, p. 4

1. Identify place value of the digit to be
rounded.
2. If digit to the right is 5 or more, round
up; if less than 5, do not change.
3. Change all digits to the right of rounded
identified digit to zeros.

643 to nearest ten

Round to first digit of number. One nonzero
digit remains. In estimating, you round each
number of the problem to one nonzero digit.
The final answer is not rounded.

468,451

Rounding all the way, p. 5

Adding whole numbers, p. 8

1. Align numbers at the right.
2. Add units column. If sum more than 9,
carry tens digit.
3. Moving left, repeat Step 2 until all place
values are added.
Add from top to bottom. Check by adding
bottom to top or adding each column
separately and combining.

Four hundred sixty-two
Six thousand, seven hundred
forty-one

4 in tens
place value.

3 is not 5
or more

Thus, 643 rounds to 640 .
500,000

The 5 is the only nonzero digit remaining.
1

65
47
112

12
10
112

Checking sum
of each digit

(continues)

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19

Chapter Organizer and Study Guide with Check Figures for Extra Practice Quizzes

CHAPTER ORGANIZER AND STUDY GUIDE
WITH CHECK FIGURES FOR EXTRA PRACTICE QUIZZES (concluded)
Topic

Key point, procedure, formula

Example(s) to illustrate situation

Subtracting whole numbers, p. 9

1. Align minuend and subtrahend at the
right.
2. Subtract units digits. If necessary,
borrow 1 from tens digit in minuend.
3. Moving left, repeat Step 2 until all
place values are subtracted.
Minuend less subtrahend equals
difference.

Check

1. Align multiplicand and multiplier at
the right.
2. Begin at the right and keep
multiplying as you move to the left.
First partial product aligns at the right
with multiplicand and multiplier.
3. Move left through multiplier and
continue multiplying multiplicand.
Partial product right digit or first digit is
placed directly below digit in multiplier.
4. Continue Steps 2 and 3 until
multiplication is complete. Add
partial products to get final product.
Shortcuts: (a) When multiplicand or
multiplier, or both, end in zeros,
disregard zeros and multiply; attach
same number of zeros to answer. If zero
in center of multiplier, no need to show
row of zeros. (b) If multiplying by power
of 10, attach same number of zeros to
whole number multiplied.

223
32
446
6 69

Multiplying whole numbers, p. 12

Dividing whole numbers, p. 14

1. When divisor is divided into the
dividend, the remainder is less than
divisor.
2. Drop zeros from dividend right to left by
number of zeros found in the divisor.
Even division has no remainder; uneven
division has a remainder; divisor with
one digit is short division; and divisor
with more than one digit is long division.

KEY TERMS

addends, p. 8
decimal point, p. 2
decimal system, p. 2
difference, p. 9
dividend, p. 14
divisor, p. 14

CHECK FIGURE FOR
EXTRA PRACTICE QUIZZES
WITH PAGE REFERENCES

LU 1–1a (p. 8)
1. A. Eight thousand, six
hundred eighty-two;
B. Fifty-six thousand, two
hundred ninety-five;
C. Seven hundred thirty
two billion, three hundred
ten million, four hundred
forty-four thousand, eight
hundred eighty-eight
2. A. 40; B. 700; C. 7,000;
D. 6,000
3. 3,000,000; 400,000

5 18

685
492
193

7,136
a. 48,000
40

3 zeros
1 zero
3
1,920,000 4 zeros
104

b. 14

10 140 (attach 1 zero)

48
4

524
206
144
8

107,944
14 1,000 14,000 (attach 3 zeros)

1.

5 R6
14冄76
70
6

2. 5,000 100

50 1 50

5,000 1,000 5 1 5

minuend, p. 9
multiplicand, p. 13
multiplier, p. 13
partial products, p. 13
partial quotient, p. 14
product, p. 13

1.
2.
3.
4.

193
492
685

LU 1–2a (p. 12)
26,090
15,000; 15,953
3,819
43,100 (over)

quotient, p. 14
remainder, p. 14
rounding all the way, p. 5
subtrahend, p. 9
sum, p. 8
whole number, p. 2

1.
2.
3.
4.
5.
6.

LU 1–3a (p. 18)
100,000; 93,822
163,400,000
860,000
255 R19
33
$1,547,000,000

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Chapter 1 Whole Numbers; How to Dissect and Solve Word Problems

Critical Thinking Discussion Questions
1. List the four steps of the decision-making process. Do you
4. Explain how you can check multiplication. If you visit a local
think all companies should be required to follow these steps?
supermarket, how could you show multiplication as a shortGive an example.
cut to addition?
2. Explain the three steps used to round whole numbers. Pick a 5. Explain how division is the reverse of multiplication. Using
whole number and explain why it should not be rounded.
the supermarket example, explain how division is a timesaving shortcut related to subtraction.
3. How do you check subtraction? If you were to attend a movie,
explain how you might use the subtraction check method.

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Page 21

END-OF-CHAPTER PROBLEMS
Name

Date

DRILL PROBLEMS
Add the following:
1–1.

88
16

1–5.

6,251
7,329

1–2.

855
699

1–3.

79
79

1–4.

1–6.

59,481
51,411
70,821

1–9.

80
42

1–10.

287
199

1–12.

9,800
8,900

1–13.

1,622
548

66
9

1–15.

510
61

1–16.

677
503

1–18.

309
850

1–19.

1–7.

66
92

78,159
15,850
19,681

Subtract the following:
1–8.

1–11.

68
19
9,000
5,400

Multiply the following:
1–14.


1–17.



900
300

450
280

Divide the following by short division:
1–20. 6冄 1,200

1–21.

9冄810

1–22.

4冄164

Divide the following by long division. Show work and remainder.
1–23. 6冄 520

1–24. 62冄8,915

Add the following without rearranging:
1–25. 99 210

1–26. 1,055 88

1–27. 666 950

1–28. 1,011 17

21


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