Business Mathematics (3 cr)

Evaluation scale

0-5

Content scheduling

More precise timing will be presented in the beginning of the course, but the topics will be discussed more or less in the following order:
- indexes
- simple interest
- compound interest
- periodic payments
- financial calculations
- investment calculations

Objective

Purpose
You get to know the mathematical principles of business economy. You understand the time value of money. You are able to estimate the profitability of operations by using financial calculations.

Learning outcomes
You know the basic concepts and methods in business economy used by engineers. You can perform calculations involved with interest, indexes, financing, investment and life cycle cost by using spreadsheets and make estimates based on them about the economic worth of operations.

Content

Time value of money. Using indexes.
Interest, discounting and recurring amounts
Financial calculations
Investment calculations
Life cycle cost calculations
Optimal replacement time of equipment
Using Excel

Location and time

This implementation takes place 13.3.2023 - 30.4.2023.

Materials

Learning material prepared by teacher.

Books in Finnish:
- Saaranen, P., Kolttola, E. & Pösö, J. 2016. Liike-elämän matematiikka. 11. uudistettu painos. Helsinki: Edita.
- Pulkkinen, P. & Holopainen, M. 2006. Talous- ja rahoitusmatematiikka. 4. uud. p. Helsinki: WSOY oppimateriaalit.

Books in English:
- Park, C. S. 2007. Contemporary engineering economics. 4th ed. Upper Saddle River, NJ: Pearson.
- Newnan, D. G., Eschenbach, T. G. & Lavelle, J. P. 2016. Engineering economic analysis. International twelfth edition. New York: Oxford University Press.
- Farr, J. V. & Faber, I. 2021. Engineering Economics of Life Cycle Cost Analysis. Boca Raton, FL: CRC Press.

Teaching methods

Face-to-face learning: Lectures at the Rajakatu campus.
E-learning: Weekly online lessons, exercises and independent work.

Employer connections

-

Exam schedules

The dates of the exams are:
- On week 17. Exact dates depend on the scheduling of face-to-face lessons.
- 1st resit 17.5.2023
- 2nd resit 31.5.2023

International connections

-

Completion alternatives

- Online implementation in Finnish in the fall of 2022 or in the spring of 2023
- Face-to-face implementation in English in the fall of 2022

Student workload

3cr = 3*27h = 81h, of which...
- lessons approximately 10h
- exams approximately 4h
- independent studying approximately 67h

Assessment criteria, satisfactory (1)

Sufficient 1
You have achieved the desired goals. You know a few of the concepts and methods and how to apply them in familiar situations but your reasoning is often deficient and you make mistakes in calculations.

Satisfactory 2
You have achieved the desired goals. You know many of the concepts and methods and how to apply them in familiar situations but your reasoning is sometimes deficient or you make mistakes in calculations.

Assessment criteria, good (3)

Good 3
You have achieved the desired goals. You know most of the concepts and methods and how to apply them in familiar situations showing often the ability to reason completely and calculate flawlessly

Very good 4
You have achieved the desired goals. You know most of the concepts and methods and how to apply them in new situations showing in most cases the ability to reason completely and calculate flawlessly.

Assessment criteria, excellent (5)

Excellent 5
You have achieved the desired goals. You know all the concepts and methods and how to apply them in new situations showing always the ability to combine things, reason completely and calculate flawlessly.

Qualifications

Basic use of spreadsheets

Further information

Final exam in two parts. Part 1 determines whether you pass or fail, part 2 determines your Grade.