(A Final Requirement in BMATH2: Mathematics of Investment)

Transcription

1 (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 Course and Section: Bachelor of Science in Business Administration Major in Marketing Management Date of Submission: April 6, 2016 Date of Presentation: April 8, 2016 Professor: Mr. Migo M. Mendoza

2 Grade: Business Profile: Company Name: Company Description: Atlas Telecommunication From our headquarters in California, USA, we are a major provider of telecommunication services internationally. Atlas Telecommunication that was founded in 1900 with five people and has grown substantially since. Our company operates one of the largest mobile, fixed line, and broadband networks international specifically in Philippines, United States and Europe. We provide communications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients. Atlas Telecommunication currently have about million mobile subscribers, nearly 4.9 million broadband customers, and thousand landline subscribers. Our Mission: Our Vision: Chief Executive Officer: Managing Director: Managing Director and Chief Administrative Officer: Managing Director, Chief Revenue Officer: Director and Senior Investment Officer: We create a wonderful world for people and businesses world wide To have the happiest customers, employees, and shareholders. Christine Joyce A. Aton Mary Joyce M. Tadiaque Arlene Ann V. Doronila Demosthenes Pormento Rosary Kameoka Client s Profile:

3 Student Name: Address: Occupation: Allowance: School: Mother s Name: Occupation: Father s Name: Occupation: Mission: Vision: Rie Mae Wurtzbach #89 Evidanos St. Constellation Subdivision Angono, Rizal Student Php 1, 750/Week Php 7, 000/ Month Tertiary: La Salle College Antipolo Secondary: Don Bosco Manila Primary: Montessori Integrated School Phoebe Eunice Wurtzbach Business Woman Antonio Rodrigo Wurtzbach Business Man To have the latest apple product. To keep updated and on trend to what s new in technology. Tech Savvy (A Final Requirement in BMATH2: Mathematics of Investment) I. Statement of the Problem A teenager is a number one tech savvy in her class. Whenever there s a new IPhone release in the market she wants to get rid of her IPhone and ensure herself to get the newest one. Recently, the Apple Company released its IPhone 6s Plus and she is very eager to get a new one right away. What do you think is the best option you could provide to this type of client and in what payment scheme? II. Objectives This business report aims to:

4 o give the option to a tech savvy teenager in choosing which is the best payment she can be use o provide the most appropriate payment scheme based on client capacity III. Methodology 1. Client s Concerns Client would like to buy the latest apple product: IPhone 6s Plus 2. Resolutions It is given that the client would like to have the iphone 6s Plus as soon as possible, hence we advise her to avail our Student Plan. After approving the availability, our company strongly recommended that the plan must be payable in ordinary annuity payment scheme. A. Definition of Payment Scheme The problem calls for an ordinary annuity under ordinary certain. A financial instrument that provides a stream of payments, for a predetermined number of years. An annuity certain will continue a stream of payments remitted to the annuitant's beneficiary or estate, if the annuitant dies before the payment term ends. The payments are made on a regular schedule, such as monthly, quarterly, semiannually or annually. B. Computation The client is availing the Student Plan for the amount of Php 2,499. It includes: Unlimited text/call to all networks, Free 1000 mbps Data, Free Social Media Messenger, Free Spotify Music and Free Social App limit of 1gb data/week. The client is to pay a 4% monthly interest rate. Furthermore, the student plan must be consumed its benefits and freebies in 2 years and the client will pay her due every end of the month. Given: R = 2,399 J = 0.04 M = 12

5 T = 2 I = j/m = 0.04 /12 = 0.02 N = tm = 2 (12) = 24 Rn = [ Sni (1+i) n 1 62, (0.003) Rn = [ ( ) 24 1 Rn = [ (1.003) 24 1 Rn = [ Rn = [ Rn = Php 2, Sn = R [ (1 + i)n 1 i Sn = 2, 499[ (1 + )24 1 Sn = 2, 499[ (1. 003)24 1

6 Sn = 2, 499[ Sn = 2, 499[ Sn = 2, 499[ Sn = Php 62, (1 (1 + i) n An = Rn [ i 1 (1 + ) 24 An = 2, 499[ An = 2, 499[ 1 (1. 003) An = 2, 499[ An = 2, 49 [ An = Php 57,

7 Amortization Schedule Perio d OPBI IDEI TPEI RPEI 1 57, ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2, , ,499 2,492 total ,784

8 3. Conclusion Based on the client s capacity to pay their dues and clients request, our company arrived in these conclusions. Student Plan IPhone 6s Plus Php 999 Php 1,999 Php 2, gb Php 26,999 Php 20, 999 Free 64 gb Php 36, 999 Php 30, 999 Php 10, 999 Php Php 62, Installment Plan We conclude that having a student plan Php 2, 499 will be the best option for her to have the latest IPhone 6s Plus (16gb) as soon as possible. Since she s a student, our company decided to implement an ordinary annuity payment scheme for our client to pay her Installment Plan. The client will receive a monthly due of Php 2,499 at the end of the month if she avail the Student Plan. This monthly payment will yield to Php 72, after two years. Actual price of an IPhone 6s Plus (16gb) is Php 43, thus, our company s profit is Php 28, and benefits that she received. Recommendation Given that the client would like to buy the latest apple product, the IPhone 6s Plus. Our company here by recommends that the student plan would be the most effective promo for the client. The plan, which amounts to Php 2, 499/month, it includes unlimited call/text to all networks, Free 1000 Mbps data, Free social media messengers for 24 months, free Spotify music for 24 months, and free social application such as Facebook, twitter, Instagram limit of 1gb per week. Also, with the terms that the client is to pay a 4% effective interest rate as the plan is consumable within 2 years. Our company recommends that the plan be paid in ordinary annuity payment scheme because the client and the company will undergo an agreement that will be effective for 2 years. Ordinary annuity is seen as the best and most appropriate payment scheme to ensure satisfaction and effectively between both parties. While, our company strives place utmost importance to client s satisfaction, we strive to create products and agreements that will benefit the growth and continuity of the company long-term.

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