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MMW - Activity 7

The document describes a family's monthly joint income and expenses. It shows that the family earns 25,000 monthly from the father's salary and sister's contribution. Their total monthly expenses are 22,000, leaving a balance of 3,000. It then calculates how much interest could be earned on the 3,000 balance amount by depositing it in a bank at 2% annual interest versus investing it in the stock market at 1% monthly interest. Investing in the stock market would earn 360 annually compared to 60 in the bank. The document concludes by stating the author would prefer to invest in the stock market because the returns are greater, though there is more risk than putting the money in a bank.

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Hazel Tanong
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33 views2 pages

MMW - Activity 7

The document describes a family's monthly joint income and expenses. It shows that the family earns 25,000 monthly from the father's salary and sister's contribution. Their total monthly expenses are 22,000, leaving a balance of 3,000. It then calculates how much interest could be earned on the 3,000 balance amount by depositing it in a bank at 2% annual interest versus investing it in the stock market at 1% monthly interest. Investing in the stock market would earn 360 annually compared to 60 in the bank. The document concludes by stating the author would prefer to invest in the stock market because the returns are greater, though there is more risk than putting the money in a bank.

Uploaded by

Hazel Tanong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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HAZEL B.

TANONG BSA1- A

Activity 7 - Mathematics in Finance

FAMILY'S MONTHLY JOINT INCOME:

 Fathers Monthly Salary – 10,000


 Sister’s Monthly Contribution – 15,000

MONTHLY JOINT INCOME : 25,000

LIST OF ALL EXPENSES INCURRED BY OUR FAMILY (MONTH OF SEPTEMBER 2020)


 Electricity Bill 300
 Equipment Monthly Payable 1,200
 Food Expense 5,000
 Groceries expense 5,000
 Load Expense 500
 Debt Payments 3,000
 Allowances (for four weeks) 2,000 2,000
 Rent Expense 3,000
 Other Expenses 2,000
Total Expenses 22,000

Monthly Joint Income - 25,000


Total Expenses - 22,000
Balance Amount - 3,000

After identifying the amount that can be saved compute the following:

1. If you deposit it in a bank with 2% interest rate annually, how much will you
gain in a year?

Formula:

I = (Percentage)(Rate)(Time)
= (3,000)(0.02)(1)
= 60.00
-If will deposit the balance amount which is 3,000 with an interest rate of 2%
annually I’m able to gain 60.00 a year.

2. If you invest it in a stock market with 1% interest rate monthly, how much will you
gain in a year?

Formula:

I = (Percentage)(Rate)(Time)
= (3,000)(0.01)(12)
= 360.00

– If will deposit the balance amount which is 3,000 with an interest rate of 1%
monthly I’m able to gain 360.00 a year.

3. Which will you prefer saving your money in the bank or in the stock market? Justify
your answer.

- I prefer to save money in the stock market. Aside from that the interest in the
stock market is greater than in a bank, your money will grow or increase faster.
Though there’s a tendency that if you will save your money in the stock market, it will
be scammed or fraud unlike in a bank that is guarantee secured. That is why
investing money, one must take the risk and expect the possibility that your choice
would result in what you’ve expected to happen.

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