Commercial mathematics is an essential branch of mathematics that involves fundamental life concepts used in businesses like taxation, banking, shares, dividends, compound interest, profit and loss, etc. Commercial mathematics includes necessary topics related to businesses, so it is also known as business mathematics. Following are the few topics of commercial mathematics:
Goods and Services Tax is an example of indirect tax charged by the government directly from the customers on goods and services. It is charged by both state and central governments. Commercial mathematics provides methods to calculate the tax amount. GST is of 3 types:
Steps to calculate GST:
A bank is a financial institution that performs the vital function of depositing and loaning money. Following are the essential functions performed by the banks:
Cheques are of 3 types:
Banking problems in commercial mathematics are asked in the following ways:
The capital of any company is divided into smaller equal amount units which are known as shares. A person or organisation who purchases such shares are referred to as shareholders. They receive dividends by the company as the return of the investment and risk taken. Companies that earn reasonable amounts of profit often declare dividends for the shareholders who are a source of profit.
Following are how shares and dividends questions are asked in commercial mathematics:
Significant shares and dividends formulas used in commercial mathematics:
The chapter’ Commercial Mathematics’ is an essential topic for class 10th mathematics and a necessary concept for advanced mathematics and real-life situations. This chapter’s sound knowledge will smoothen your journey through the upcoming mathematics chapters and real-life business situations.