Business Mathematics (3cr)

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:
- indices and inflation
- simple interest
- compound interest
- periodic payments
- financial calculations
- investment profitability calculations
- comparison of investment alternatives
- profit margin calculations

Objective

Purpose: In this course, you become familiar with the mathematical foundations of engineering economics. For example, you will learn to use indices to account for changes in prices. You will also learn to apply interest calculations to choose the most profitable investment option among alternatives.

Competences: You increase your knowledge and deepen your understanding of the mathematical foundations of your own technical specialization. You learn to apply established computational methods to support decision-making related to economics.

Learning outcomes: After completing the course, you know the basic concepts and methods of business economics that are important for an engineer. You will be able to perform calculations related to indices, interest, financing, investments, and life-cycle costs using a spreadsheet application. You will also be able to use the results of these calculations for planning operations and assessing profitability.

Content

During the course you will study the following topics:

Change in the value of money and use of indices
Gross margin calculations
Interest, discounting, and periodic payments
Financial calculations
Investment calculations
Life-cycle cost calculations
Optimal service life of equipment
Use of spreadsheet software

Location and time

This implementation takes place 28.8.2023 - 5.11.2023.

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. 2019. Fundamentals of engineering economics. Fourth edition, Global edition. NY, NY: 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, exercises and independent studying.

Employer connections

-

Exam schedules

The exams will take place at:
- Lessons of the week starting on 30.11.
- First resit 22.11.2023
- Second resit 13.12.2023

International connections

-

Completion alternatives

- Online implementation in Finnish in the fall of 2023 or in the spring of 2024
- Hybrid implementation in Finnish in the fall of 2023 or the spring of 2024
- Face-to-face implementation in English in the fall of 2023

Student workload

3cr = 3*27h = 81h, of which...
- lessons approximately 24h
- exams approximately 4h
- independent studying approximately 53h

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

You can solve equations and simplify expressions. You understand the concept of a function. You are familiar with the basic use of a spreadsheet application.

Further information

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