APPLIED

• Investment-Investment is an asset or commodity obtained with the intention of producing sales or appreciation.
• Appreciation refers to an increase over time in the valuation of an object.
• Exchange Rate - Investment may depend on the exchange rate of a country.
• Exchange rate is the value of a currency for the purpose of conversion to another
• Benefits of Investing 1. Stay ahead of Inflation 2. Money Making Money

  3. Meet Other Financial Goals
• Stay ahead of Inflation -You'll eventually end up wasting money over time if you do not invest and build your money. Inflation is the general rise in prices that arises every year and the decrease in the money's buying power.
• Money Making Money -Investing for the long term provides more options for your income to grow-your earnings compound with time. Your money works hard to save you from having to work.
• Interest Rate - Interest rate is the amount a lender charges for the utilization of assets expressed as a percentage of the principal.
• rate of interest is usually noted on an annual basis referred to as the annual percentage rate (APR)
• interest rate does not take account of the inflation rate because of the Purchasing Power of Peso (PPP) or the value of money to buy a product/service decrease
• Banks determine interest rates today by the interaction of the money market supply and demand for funds.
• 3. Meet Other Financial Goals -Getting other methods of earning allows you accumulate cash easier.
• Nominal Interest-Commonly known as fixed interest rate. This does not take the increase of commodity into
• Nominal Interest-Commonly known as fixed interest rate. This does not take the increase of commodity into the computation. It's used mostly by the commercial banks for their loans
• Effective Interest Rate - This is the interest rate received or charged on an investment, loan or other financial transaction owing to the compounding result for a defined period of time.
• Floating Rate- The dynamic rate is also known as this type of interest rate. Instead, its interest rates are based on a bench mark (Consumer Price Index - CPI) such as the forex or the Philippine Stock Exchange. It does not have a set rate for the interest it puts on a commodity. 2
• flat rate is merely a predefined fee or payment on top of the value of the purchase. It is simply a pricing structure, regardless of use, that charges a single fixed fee for a service.msm Occasionally, the amount of time or tenure of the loan or service may not depend on the interest rate.
• flat rate is merely a predefined fee or payment on top of the value of the purchase. It is simply a pricing structure, regardless of use, that charges a single fixed fee for a service.msm Occasionally, the amount of time or tenure of the loan or service may not depend on the interest rate.
• Rent- is the revenue arising from land ownership and other free gifts of nature.
• In a modern economic view, rent is represented as the difference between the net return of a producing factor and its supply price.
• Rental Business as an Investment Opportunity 1. High Demand for Rentals 2. High Occupancy Rates 3. Affordable Property Price 4. Growth Potential
• Rental Concerns 1. Big Capital Investment- 2. Location 3. Population 4. Risk
• 1. High Demand for Rentals- The Philippines has a thriving rental market which is currently witnessing a huge demand for locations around the country.
• 2. High Occupancy Rates- The high demand for rental properties, particularly in the financial hubs of the world, has driven vacancy rates downward.
• Affordable Property Price- In Southeast Asia, land prices are one of the lowest. According to a report in 2014 by UK-based consulting company Global Property Guide, prices of 120 square-meter (sq.m.) apartments situated in financial districts across Metro Manila average $3,156 per sq.m.
• Growth Potential- There is an ongoing trend of renting out properties regardless of size and use. In recent years, even home rentals could be arranged online. This setup promotes increased economic gains by targeting a larger market.
• Big Capital Investment- Renting a property might be less costly than purchasing a property; however, rentals would also require a large capital investment because there are payment terms and conditions that vary from property to property.
• 2. Location- Considering the location of your business is essential if you want to attract a good number of tenants. Peace and order, which translate to safety and security of the business, is also a consideration in choosing a location.
• Population - Looking at a location's demographic is critical for businesses because it creates a target market for people who are willing to rent. Understanding the characteristics of a particular population helps individuals generate sound business decisions related to their renting activities.
• Risk-Any form of risk, big or small, should be considered in deciding to proceed with a rental. In the business setting, higher capital translates to higher risk because potential losses become greater should the business fail
• Minimum wage is the minimum amount of compensation that an employer is required to pay its workers fo work performed within a particular time.
• Letter of Instructions No. 174, s.1974 (Presidential Decree No. 390)

  1974
• Letter of Instructions No. 174, s.1974 (Presidential Decree No. 390)


  All employers from the private sector, including non-profit institutions and organizations, are urged to grant monthly emergency allowances to their employees
• Republic Act No. 6727


  • Supports the establishment of minimum wages and encourage productivity improvement
  • Guarantees workers' rights to a fair share of the fruits of production
• Republic Act No. 6727


  1. Established the National Wages and Productivity Commission (NWPC)

  2. Established the Tripartite Regional Wages and Productivity Boards
• TIER 1 The minimum wage rate is determined by the following factors: poverty threshold prevailing wage rates • different socio-economic indicators
• TIER 2 A voluntary, productivity-based pay that is over the minimum wage. This pay encourages workers and enterprises to become more competitive and productive.
• Wage Rationalization Act (RA 6727)- States that there should be different minimum wage rates per region for agricultural and non-agricultural workers.
• Problems in Different Minimum Wage Rates 1. Migration to Urban Areas-High minimum wage rates in urban areas can create an influx of job been seekers from neighboring cities who are seeking opportunities to have a higher paying job. This creates crowding in cities, leaving fewer people in other small towns. 2. Fewer Businesses in Other Regions-A higher minimum wage rate attracts not only job seekers but also business owners. Big businesses would rather be located in a big city where many people are working and earning than be in other regional municipalities with fewer people
• Taxes are compulsory charges by the government to fund its different operations. These are levied on individuals, companies, and the goods people consume.