Applied Economics

General Academic Strand│Accountancy, Business, and Management

Name: Date:

4.1 Investments, Interest Rate, and Rental Concerns of Filipino Entrepreneurs

Let’s Point it Out

30 minutes

Learning Competency
The learners will be able to analyze the effects of contemporary issues such as migration,
fluctuation in the exchange rate, oil price increases, unemployment, peace and order, etc.
on the purchasing power of the people (​ ABM_AE12-Ie-h-8).

Recall
The issues of exchange rates, fluctuations, and instability raise concerns for
investors. It is because they rely on how a product or service appreciates.

Earnings from interest should be higher than the ​inflation rate​. If a loan is
taken out when prices are higher, the peso's ​purchasing power will be less than
when the loan is first taken out.

The variables needed to determine the interest include the principal amount,
interest, and time.
● Principal amount refers to the original sum of money borrowed into a
loan.
● Interest​ is the charge of using cash.
● Time​ is the duration until the loan matures.

There are different types to derive interest rates:

● Nominal interest

Unit 4.1 ​Investments, Interest Rate, and Rental Concerns of Filipino Entrepreneurs 1
Applied Economics
General Academic Strand│Accountancy, Business, and Management

● Effective interest
● Floating interest
● Flat interest

There are also different considerations before starting a business:

1. Capital investment that focuses on an entrepreneur's capability to invest
a large amount of money in starting a business
2. The location and the price of the property; a more peaceful business
environment attracts more people
3. The target population that buys products and avails services; it can be
measured by determining the unemployment rate in the area
4. Level of risk associated with the business
5. Awareness of the current business situation or climate

Instructions
Answer each question using the concepts that were learned during the
lesson.
Product

1. Kris, impulsively and without knowledge of how businesses operate, decided to start

his milk tea shop near a school. What do you think are the possible problems he will

encounter in his business?

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Unit 4.1 ​Investments, Interest Rate, and Rental Concerns of Filipino Entrepreneurs 2
Applied Economics
General Academic Strand│Accountancy, Business, and Management

2. Allen decided to use his savings to start a business. When he was planning to open a

milk tea shop, he sought advice from the owner of a general goods store. What do

you think will be the possible outcome of Allen’s business? What are some of the

problems he may encounter?

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3. Andy is always watching the Philippine Stock Exchange Index, looking for the right

opportunity to invest his money. He studies each product's exchange rate,

compares the data, and determines the right investment scheme in which to put his

money. What money habits does he have? Are there any problems that he might

encounter after investing?

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Unit 4.1 ​Investments, Interest Rate, and Rental Concerns of Filipino Entrepreneurs 3
Applied Economics
General Academic Strand│Accountancy, Business, and Management

Suggested Rubric for Grading

The rubric below is a suggested one. Your teacher may modify the rubrics based on your
needs. Consult your teacher for the final rubric.

Performance Levels

1 2 3 Suggested
Criteria Score
Beginning Proficient Advanced Weight
Proficiency Proficiency

Content Sentences are limited Sentences are Sentences are

and the explanation is well-written and well-written and
inadequate. explanation is meaningful and the ×3
adequate. explanation is
adequate.

Organization The thoughts in each Some thoughts in The thoughts in each

sentence are not each sentence are sentence are ×2
properly organized. organized. organized.

Grammar Limited use of Use of vocabulary and Very good use of

vocabulary, syntax syntax is frequently vocabulary and
×1
and there is wrong seen but there is still syntax and there is
spelling. wrong spelling. no wrong spelling

Total Possible Score 18

Teacher’s Feedback
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Unit 4.1 ​Investments, Interest Rate, and Rental Concerns of Filipino Entrepreneurs 4