Question

Which of the three methods is your favorite way to calculate the balance and why?

1) Method 1: Using the formula A + B - C
2) Method 2: Subtracting C from the sum of A and B
3) Method 3: Multiplying A by B and then subtracting C

Answer 1

The preferred method for calculating the current account balance is Method 1: A + B - C, because it is straightforward and in line with the basic principles of addition and subtraction.

Step-by-step explanation:

To calculate the current account balance, any of the three methods provided could be used, depending on personal preference and the context of the problem. However, the preferred method for straightforward calculations without any given constraints or additional complexities would be Method 1: Using the formula A + B - C. This method aligns with the basic principle in working with addition and subtraction, allowing for direct adjustment of values concerning Exports (A), Imports (B), and the first number under Balance (C) to find the final balance number, which is the current account balance.

The preference for Method 1 is due to its simplicity and clarity. It involves a direct approach where you simply add total exports and imports and then subtract the balance. This method is usually taught early in mathematics education and is the standard approach when dealing with whole numbers and combining or comparing financial figures. Therefore, this method is commonly used in many practical applications, including accounting and finance.