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 9.1.2023 - 19.5.2023.

Materials

Learning material available in the learning environment.

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

Online-learning. Exercises and independent studying.

Employer connections

-

Exam schedules

Possible dates for exam / resit:
- 18.1.2023
- 8.2.2023
- 22.3.2023
- 12.4.2023
- 17.5.2023
- 31.5.2023

International connections

-

Completion alternatives

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

Student workload

Calculatory workload:
27 h/op * 3op = 81 h

Of this approximately
- 32 h of studying the material
- 45 h of exercises
- 4 h for exams

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.