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Absolute Value in Word Problems

6.NS.C.7d
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Grade 6 Numbers - 6.NS.C.7d

How is Absolute Value Used in Banking? - In business mathematics, an absolute value is also called the intrinsic value. It refers to a method of business valuation that uses a discounted flow of cash (DCF) analysis for determining the financial worth of the company. The method of calculating absolute value differs from the relative value model, which examines the worth of the company from the competitors. Investors use absolute value for determining whether the stock is undervalued or overvalued by comparing the share price of the company and given its value based on the current price of the stock. There are certain challenges when using the analysis of absolute value such as cash flow forecasting, predicting the accurate rate of growth, and evaluation of the appropriate discount rates. Finding the value of the stocks is one of the primary jobs of an investor. Value investors usually tend to use popular metrics like the price-to-earnings ratio. Unlike the relative value, the absolute value does not call for any comparison between organizations that exist in the same sector or industry.

Printable Worksheets And Lessons




Homework Sheets

There are a lot of banking questions in here.

  • Homework 1 - Harry has a bank account with a balance of $100.00. Harry owes $90.00 to his friend and he owes $20.00 to a shopkeeper. What would Harry’s bank balance be if both debts were paid?
  • Homework 2 - John spends $15.00 for juice and $20.00 on toys. His friend Michael joins him and gets another $25.00 worth of toys. John pays the entire amount from his account. John previously had a bank account balance of $50. How much will it cost him? Find the remaining balance of John’s account, after all expenses have been paid?
  • Homework 3 - Danny buys a watch for $255, jeans for $110, and a pair of shoes for $90. He paid for those purchases with his credit card. Danny pays his credit card with his bank account.



Practice Worksheets

While I was researching types of problems to write for these, I realized that health care and financial institutions are bombarded with these types of questions all the time.

  • Practice 1 - Robby has a bank account with a balance of $1,205.00. Robby owes $1,000.00 for his bike loan and he owes $630.00 to mobile phone bills. What would Robby’s bank balance be if both debts are paid?
  • Practice 2 - A group of drivers were looking at their debts. Mike is in $250.00 of debt. Sammy has $145.00 of debt. Guy has a positive bank balance of $300.00. Who owes the most money?
  • Practice 3 - Larry buys a travel bag for $150, a bus ticket for $175, and a water cooler for $15. He paid for those purchases with his credit card. Larry has a bank account with a balance of $400. How much will it cost?



Math Skill Quizzes

The questions are a bit packed together here, so I had to reduce the the size of the problem sets.

  • Quiz 1 - Sisters were looking at their debts. Sophie is in $28.00 of debt. Britney has $78.00 of debt. Jade has a positive bank balance of $100.00. Who owes the most money?
  • Quiz 2 - Aaliyah buys a music player for $375, a TV for $500, and a mobile phone for $105. She paid for those purchases with her credit card. Aaliyah has a bank account with a balance of $1000. How much will her purchases cost?
  • Quiz 3 - Cab drivers were looking at their debts. Jacob is in $ 156.00 of debt. Ethan has $338.00 of debt. Mason has a positive bank balance of $617.00. Who owes the most money?


How to Identify Absolute Value in Word Problems

Up to now we have always been told to find the absolute value of values, operations, or equations which is signified by being placed between the (| |) symbol. There are many times in real world situations where you will need to determine this value without being told by that symbol. In most cases you will be looking for a difference between two points or and change in value between them. A good example of this is when you are watching cars go by on the highway. If you are travelling at 55 miles per hour and a car passes you doing 60 miles per hour. The car, from your perspective, is travelling 5 miles per hour, but from someone sitting on the side of the road there is a 60 mile per hour difference. This can also be found in the world of business. Everyone loves Apple products. In fact, last year they sold $31.32 billion dollars in iPhones. Do you know what their second most revenue source is? It is in services, most notable their Music and TV subscription services. Services accounted for $11.6 Billion in revenue last year. Guess what would be dealing with if we were to calculate the difference in values between these two sources of revenue? You guessed it! We you see values that are spaced on like this, that is exactly what you are looking for.