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
