Alpha Investments. Lim Jeong Woo James Pineda Patrick Calo Mary Grace Tan Jerly Fajardo

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Dwayne Barnett
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1 Alpha Investments Lim Jeong Woo James Pineda Patrick Calo Mary Grace Tan Jerly Fajardo

2 Business Profile Company Name: Alpha Investments Company Description: We provide guidance to clients/ hungry entrepreneurs who wants to make a lifetime decision that will affect their lives. Our Mission: is to help young investors because we understand entrepreneur.

3 Chief executive officer Jerly Fajardo Managing director Lim Jeong Woo Managing Director and Chief Administrative Officer James Pineda Managing Director, Chief Revenue Officer Patrick Calo Director and Senior Investment Officer Mary Grace Tan

4 Client s Profile Company Name: East Furniture Company Company Description: East Furniture Company was founded in 2000 by President Jeong Woo. The company is located in Manila, Philippines. EFC employs a diverse work force of about 70 team members to support its operations. The company produces over 500units of finished furniture daily and ships them to customers throughout the country. It brings 15 years of experience in manufacturing furniture products. It is proud of having skilled and motivated team members who are highly committed to producing quality products and implementing positive change. Wood Mark is a quality system designed for the wood products industry, with the emphasis on ensuring consistent product quality and continuous improvement. This innovative approach enables EFC to significantly increase its efficiency and remain competitive in today s ever-changing marketplace.

5 Our Mission: To create and deliver the most innovative products and deliver quality service. Ensuring that products are of outstanding quality, value for money and instill pride ownership. Our Vision: To become a global distributor of quality furniture

6 Statement of the Problem A man who recent won the jackpot prize in a lottery amounting to P120,850, There will be a 10% tax deduction, and then he is planning to invest 30% of the remaining into a certain bank. Bank X is offering 10% compounded annually in 10 years, bank Y offers 20% compounded monthly in 5 years, and Bank Z offer is 15% compounded quarterly in 7 years. What is the best option you could provide for this type of client? How much will he gain in each of the offers? How much do you think will he receive every payment period of the offers?

7 Objectives This business report aims to: To find the best option we could provide for this type of client. To find the amount he will gain in each of the offers. To find the amount he will receive in every payment period in each of the offers.

8 Methodology Client s Concerns How much will he gain in each of the offers How much do you think will he receive every payment period in each of the offers What is the best option you could provide for this type of client

9 Resolutions How much will he gain in each of the offers Definition of Payment Scheme Before we use the compound interest formula, We should find the compound amount each of the bank X, Y, and Z. and find the original price after tax deduction. Computation So the client wants to know how much will he gain in each of the bank X, Y, and Z. First, we should find the original price after tax deduction. So the jackpot prize in lottery amounting to P120,850, Then the tax deduction 10 % is P12,085, So the amount of the cash is P108,765, Then he is planning to invest 30% from this money. So P108,765, X 30% is P32,629, That is the original price of the money that he tried to invest in each of 3 bank. Then let s find the each of the compound amount and the compound interest.

10 Case I: If he is going to invest Bank X Formula Given I = j/m, 0.10/1 = 0.10 n =tm, 10(1) = 10 Computation So the compound interest is, 36,043, ,629, = 3,413,770.18

11 Case II: If he is going to invest Bank Y Formula Given I = j/m, 0.2/12 = n =tm, 5(12) = 60 Computation So the compound interest is, 87,968, ,629, = 55,338,698.87

12 Case III: If he is going to invest Bank Z Formula Given I = j/m, 0.15/4 = n =tm, 7(4) = 28 Computation So the compound interest is, 91,469, ,629, = 58,840,268.03

13 How much do you think will he receive every payment period in each of the offers Definition of Payment Scheme Then, if we find the compound amount already we just divided by each of the year that he wanted to invest his money. Computation Let s find the payment that he receive every period

14 Case I: From the bank X Formula Given I = j/m, 0.10/1 = 0.10 n =tm, 10(1) = 10 Computation = 5,310,

15 Case II: From the Bank Y Formula Given I = j/m, 0.2/12 = n =tm, 5(12) = 60 Computation = 864,482.82

16 Case III: From the Bank Z Formula Given I = j/m, 0.15/4 = n =tm, 7(4) = 28 Computation = 1,902,151.31

17 What is the best option you could provide for this type of client Definition of Payment Scheme Using the formula of compound amount again, looking for the best bank. Computation Bank X is 3,413,770.18, Bank Y is 175,935, and Bank Z is 140,954, Therefore, the best bank for the client is Bank Y.

18 Conclusion Based on the client's capacity to pay their dues and client's request our company arrived in these conclusions: What if he will put his money to bank X The client will gain P3,413, every period of interest and P5,310, for Rn. What if he will put his money to bank Y The client will gain P55,338, every of the interest and P864, for Rn. What if he will put his money to bank Z The client will gain P58,840, every of the interest and P1,902, for Rn.

19 Compares with bank X, Y, and Z Compound Amount Every period of Interest Rn Same Interest wth equal period Bank X P36,043, P3,413, P5,310, P3,413, Bank Y P87,968, P55,338, P864, P175,935, Bank Z P91,469, P58,840, P1,902, P140,954,891.13

20 If you observe each of the period, According to the table, Bank Y is the best option for the client to invest the money to that bank.

21 Recommendation After through investigation, our company strongly recommends these statements: Before client will invest their money, we make sure that they will select which bank will have more profit or interest for them to have it. It is tectonic to analyze each of the bank s interest. It is very substantial to put the client s satisfaction.

(A Final Requirement in BMATH2: Mathematics of Investment)

(A Final Requirement in BMATH2: Mathematics of Investment) Group: Group Leader: Group Members: E Christine Joyce A. Aton Arlene Ann V. Doronila Rosary Kameoka Demosthenes Pormento Mary Joyce M. Tadiaque