Midterm Exam

Assuming you are given 500,000 pesos, when and where you will invest such amount
and why? Explain.

I would divide and invest the money into various investments. First, I would
invest 100,000 pesos in my parents' lending business. They just started the lending
business a few months ago at 7 percent interest rate. My parents currently have a
savings account set up for me in which they save all of the profits or interest they earn
from lending. Thus, I want to have my own share in their business to make sure the
money does not stagnate.

 Then, I would spend another 100,000 pesos to buy the land adjacent to my
parents’ land in Napsan, Palawan. I would seize the opportunity to purchase at least 200
square meters of land to supplement my parents' existing land for expansion. The price
of the land in my mother’s province is still cheap because the area is far from the city
and because the owner of the land is my grandmother. My relatives there told my
mother that the price of their lands is already increasing, so I think it is a good
investment opportunity while the price is still low rather than in the future.

I am thinking of placing a transient or townhouse apartment there since the area

is near a beach. Or I could construct a commercial building so that when the number of
tourists increases, my land or space will be profitable.

For the remaining 300,000, I would invest it in life and health insurance with a
stock investment. I heard from an insurance agent that the younger the insurer, the
cheaper the required monthly or quarterly plan setup being offered. So, while I am still
young, or in my 20s, I would grab the chance to prepare for an insurance plan with stock
investments for my future.

The picture below is an illustration of how much I could invest if I bought

insurance.