CAMS Level I

Fundamentals of Business Mathematics cheat sheet

Every chapter's key points, formulas and definitions on one page, for the last week before the exam. Each heading links to the chapter that explains it.

Ratios, rates and proportions

A ratio compares two or more quantities of the same kind, written a:b; a rate compares quantities measured in different units as a single value, such as km per hour or KES per US dollar.
A proportion states that two ratios are equal, a:b = c:d, so a missing value can be found once the other three are known.
The same value can always be written as a fraction, a decimal or a percentage: 3/4 = 0.75 = 75%.
Carry extra precision through a multi-step calculation and round only the final answer, because rounding early compounds error through every later step.
Where a ratio meets a total, turn the ratio into fractions of the whole first: a 2:3 ratio splits a total into 2/5 and 3/5.

Key terms

Ratios: A comparison of two or more quantities of the same kind, showing how many times one contains the other, written a:b (for example, mixing concrete in a 2:3 ratio of cement to sand).
Rates: A comparison of two quantities measured in different units, expressed as a single value, for example a speed of 80 km per hour or an exchange rate of KES per US dollar.
Proportion: A statement that two ratios are equal, for example a:b = c:d, used to find an unknown quantity once three of the four values are known.
A decimal to a fraction: Write the decimal digits over the matching power of 10, then simplify: 0.75 = 75/100 = 3/4.
A fraction to a decimal: Divide the numerator by the denominator: 3/4 = 3 ÷ 4 = 0.75.
A percentage to a fraction or decimal: Divide by 100: 40% = 40/100 = 0.4.
A fraction or decimal to a percentage: Multiply by 100 and add the % sign: 0.4 × 100 = 40%; 3/4 × 100 = 75%.

The rest of the sheet covers

Algebra and calculus
Commercial mathematics
Descriptive statistics and data presentation
Probability
Worked examples
Exam technique and revision
Glossary