CAN FILIPINOS AFFORD TO WORK REMOTELY? A STUDY ON THE AFFORDABILITY OF LAPTOPS BASED ON THE SALARIES AND COST OF LIVING IN THE PHILIPPINES USING COMPOUNDING

Businesses are shifting to remote or hybrid setups due to employee demand. Since the trend is moving toward these setups, employees need to be able to conduct their work in their respective homes. With this, they need devices, such as a laptop, to accomplish their daily tasks. To live comfortably, however, they must set aside 20% of their salary for savings and 30% for their wants. The research focuses on the affordability of laptops by considering the average annual salary in the Philippines, the average annual cost of living, the average annual rate of salary increases, and the average annual inflation rate, along with current laptop prices and their average annual price movements. We used compounding to calculate the maximum time an employee can save and spend 50% of their salary on a laptop. Annual compounding is used, and the compounded values for the cost of living and the laptop price are deducted from the compounded value of the salary. After performing the calculations, it was determined that the Apple MacBook Air is the most feasible option; however, it will take the employee 37 years to purchase this laptop while saving 50% of their salary. When the employee reaches retirement age, they may not fully utilize the laptop. It is recommended that the rate of salary increases be increased, and other businesses that offer laptops should maintain their prices or minimize them to make them more affordable for employees. Benchmarking Apple is a viable option to see how they can control their prices.