Integers in the Real World: Positive and Negative Numbers in Finance

The number line is the reference point when assigning integers as either positive or negative. The number line is the systematic and sequential arrangement of integers with zero (0) as the starting point and the numbers increase or decrease away from 0 (Cengiz et al., 2018). The numbers on the right are assigned the positive (+) sign, while the numbers on the left are assigned the negative (-) sign. Therefore, positive integers are numbers above 0 and hence with a (+) sign, whereas, negative integers are numbers below 0 and hence with a (–) sign. Start your report with an introductory paragraph on positive and negative integers. The identification of integers as either positive or negative is important in finance, especially in budget making because revenues are regarded as positive values while expenses are taken as negative values (Ledić & Rubil, 2020). Accordingly, to prepare a budget, you will need to add your income values to give a sum value of I and then negate (subtract) all the summed-up expense (E) values, giving the budget expression of I-E.

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The expression for income per hour is given by I = pay/h × h hours. Assuming I am paid an average hourly wage of $40, then I = $40 × h hours. In case I work for 4 hours a day, then I = $40 × 4 = $160/day. Consequently, the baseline income equation is: I = pay/h × h hours and it is useful in calculating the daily, weekly, monthly, or yearly income. I can use this expression to determine the number of hours I should work to earn a weekly wage of $400, inclusive of overtime pay. I must first define the hourly pay. Assuming that I am paid $40/h, then I = $40 × h hours, which should equate to $400/week. From, $400 = $40 × h hours, h hours = $400/$40 = 10. Therefore, with an average hourly pay of $40, I should work 10 hours a week to earn an average weekly pay of $400. Notably, income is a positive integer because it is a positive value and adds to my liquidity.

With an average gas price of $3.5/gallon, the cost of g gallons = $3.5 × g. With an estimated average mileage of 40 miles a day, if I work five days a week, then, my total mileage is 200 miles. If a gar consumes 1 gallon per 25 miles, I would use 200/25 gallons, which equals 8 gallons. Thus, the weekly gas cost will be expressed as M = g gallons/week × $3.5. Correspondingly, if my car consumes 8 gallons weekly, then M = 8 × $3.5 = $28, which is regarded as -$28 in my weekly budget. Subsequently, the gas cost would be considered a negative integer in my budget because the value would be negated from my income and reduces my liquidity.

If I work 40 hours a week, with a remuneration of #3.5/h, then from I = pay/h × h hours expression, I $40 × 40 = $1600/week. As already approximated above the weekly gas cost = -$28. Assuming that I work throughout the month, I = $1600 × 4 = $6,400/month and M = -$28 × 4 = -$112/month. Other estimated monthly expenses include rent ($900), food ($500), electricity ($125), water ($70), communication ($200), clothing ($100), and miscellaneous ($500). These expenses amount to -$2,395. Together with the gas cost, total monthly expenses (E) come to -$2007. Given that I have no other source of income, the balance at the end of the month = I – E = +$6,400 – $2,007, which equals +$4,005, implying a surplus of $4,005.

The exercise has illustrated the practicability of the topic of integers. I have learned that assigning integers as either positive or negative is useful in determining one’s financial position and guides appropriate decision-making. For instance, a higher positive income value tells that a person has a high income while a high negative expenses value indicates that the person has more financial obligations to meet. Remarkably, assigning signs to integers indicates whether one has a surplus or deficit capital at the end of a given period of earning and spending.

References

Cengiz, C., Aylar, E., & Yıldız, E. (2018). Intuitive development of the concept of integers among primary school students. International Electronic Journal of Elementary Education, 11(2), 191-199. https://doi.org/10.26822/iejee.2019248599

Ledić, M., & Rubil, I. (2020). Does going beyond income make a difference? Income vs. equivalent income in the EU over 2007-2011. Public Sector Economics, 44(4), 423-462. https://doi.org/10.3326/pse.44.4.1