GROUP D: VISITING PROFESSOR. Rule, Sarah Racquel Bantang, Regina Francisco, Princess Liezl Miaral, Jasmine Mae

Transcription

1 GROUP D: VISITING PROFESSOR Rule, Sarah Racquel Bantang, Regina Francisco, Princess Liezl Miaral, Jasmine Mae

2 BUSINESS PROFILE: The Budget Rent a Car business was founded in a storefront in downtown Los Angeles in 1958 by Morris Mirkin. Instead of appealing to the typical business traveller renting at the airport, Mirkin offered "value for money" to the renter who was in business for himself, or the family who didn't own a car. He chose the name Budget because it reflected his own shoestring budget, and because he thought it would attract the budget-minded renter. He was right. In 1960, Budget Rent A Car Corporation was founded to franchise Mirkin's concept and to take it a lot further. Shortly after its founding, Budget Rent a Car Corporation began a program of rapid franchise expansion into airport locations where the Budget Rent a Car system showed it could compete effectively with the larger vehicle rental systems.

3 CLIENT S PROFILE: He is an Australian-American mathematician who has worked in various areas of mathematics. As of 2015, he holds the James and Carol Collins chair in mathematics at the University of California, Los Angeles. Lucas was a co-recipient of the 2006 Fields Medal and the 2014 Breakthrough Prize in Mathematics. He is a graduate of Mathematics and Statistics in Mudrdoch University, and took his Master s and PhD degree in one of the top universities in Australia, University of Western Australia (UWA). He is now the most well-known best Math Professor in Asia and Australia.

4 VISITING PROFESSOR

5 STATEMENT OF THE PROBLEM: A Math professor from a premier university in Australia is a visiting professor at De La Salle University-Manila for academic year only. He is leasing a condominium one mile away from the university. Since he is a fond of traveling and adventures, he is planning to have a car that he can use all throughout his stay in the Philippines. What do you think is the best option you could provide to this type of client and in what payment scheme?

6 OBJECTIVES: This business report aims to: provide an option to the professor on how he could have a car; and provide the most appropriate payment scheme based on client' capacity

7 CLIENT S CONCERN: A. Client would like to know the best option he could have a car. Client B. would like to know how much he would pay every month for the car rent.

8 RESOLUTIONS: A. Client would like to know the best option he could have a car. We suggest to our client that the best option he could have between buying or renting a car, it is the best that he only rent a car since he s only a visiting professor for 1 year.

9 B. Client would like to how much he would pay every month for the car rent. It says in the problem that a Math professor is a visiting professor in DLSU. The Math professor would like to know the best option he could have in order to pay for the car rent.

10 a) Definition of Payment Scheme We used the formula of finding the periodic payment of annuity due. The periodic payment of annuity due is the size of payment to be made immediately, rather than at the end of the period. As a rent a car business we offered our client the best option he could have. Since we assumed that he could pay monthly for the car, we used the formula of finding the periodic payment of annuity due to know the size of payment he would pay us every month.

11 b) Computation We assume that the professor can afford to pay in cash every month for the car rent. Since, it is stated in the problem that he is only a visiting professor for 1 year we assumed that he will only be renting the car for 1 year with monthly cash payment with a nominal rate of 6%. The payment for the car for 1 year is Php We used the formula for finding the size of the payment of annuity due, since our client would like to know what type of payment scheme he could have.

12 Adue = Php j= 6 % = 0.06 t= 1 year m= 12 n= tm = 1(12) = 12 i= j/m = 0.06/12= Rdue = Aduei (1+i)-(1+i) 1-n = (0.005) ( )-( ) 1-12 = (1.005)-(1.005) -11 = (1.005)-( ) = Rdue = Php

13 We provided an amortization schedule below. 1-(1+i) -n An = Rn [ ] i 1-( ) -12 = [ ] (1.005) -12 = [ ] = [ ] = [ ] = [ ] An = Php

14 AMORTIZATION SCHEDULE PERIOD OPBI IDEI TPEI RPEI TOTAL:

15 CONCLUSION: We therefore conclude, based on client s concern: Using formula, Rdue= Aduei/(1+i)-(1+i) 1-n we can get the size of the payment easily. Hence, it is just a monthly payment for 1 year. And we assumed that our client can afford to pay our offer in renting car monthly. We suggest the option of renting a car for our client because he is only visiting Philippines to teach in DLSU for 1 academic year. He will only need the car for a temporary use for transportation and travelling.

16 RECOMMENDATION: The business must give the deserving offer to the client. When the client wants to know the amount of the payment we would pay, we recommend using the formula of finding the periodic payment of annuity due. Client must understand well the discussion about paying a monthly rent car.