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:
- profit margin calculations
- indices and inflation
- simple interest
- compound interest
- periodic payments
- financial calculations
- investment 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

The course is implemented from September 2, 2024, to December 8, 2024.

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

Flipped learning: The theory is studied independently using written material and instructional videos before the weekly lesson. During the weekly contact session, the focus is on problem-solving exercises and personal guidance. Attendance is mandatory at the weekly sessions.

Active participation in solving exercise tasks is necessary to achieve the learning objectives.

Employer connections

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Exam schedules

Exams will be held during the week starting on December 2nd.

The first retake session will begin on the week starting on January 13, 2025.

The second retake session will begin on the week starting on February 3, 2025.

International connections

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Completion alternatives

- Hybrid implementation in Finnish in the fall of 2024 or the spring of 2025
- Online implementation in Finnish in the spring of 2024
- Face-to-face implementation in English in the fall of 2024

Student workload

3cr = 3*27h = 81h, of which...
- lessons approximately 18h
- exams approximately 4h
- independent studying approximately 59h

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.

If a student enrolled in the course does not show activity within three weeks of the start of the course, the enrollment will be rejected.