Saint Paul’s School of Ormoc Foundation, Inc.

Apitong Street, Brgy. Punta, Ormoc City

SCORE
SENIOR HIGH SCHOOL DEPARTMENT
S.Y. 2023-2024 | Second Semester
50
Final Examination in Applied Economics
Name: LRN:
Teacher: Level & Section:

I. Understand each question before filling in your answers in the provided spaces.

Review each scenario below and determine the type of interest rate being described. Write your answer in the
spaces provided.

Floating Rate Nominal Rate

Effective Interest Rate Flat Rate

1. Chen wants to loan money to start his business. He figured that he needs to consider
the Consumer Price Index as a way to lower his interest rate. Based on this situation,
which is the best interest rate he needs to apply?
2. Wanting to start a business, Gianne borrowed ₱10,000 from his friend Chris. They
both agree to a loan that is equally payable in three months. They also agreed that
Gianne would pay Chris an additional interest of ₱50 monthly. Which of the
following interest rates describes this scenario?
3. Marie took out a loan of ₱20,000 from the bank to purchase a car. The loan
agreement states that she will pay back the principal amount plus an additional 5%
interest compounded annually over a period of 5 years.
4. Michael opened a savings account with a bank that offers an annual interest rate of
2.5%. The interest is compounded quarterly.
5. John deposited ₱5,000 into a high-yield savings account with a variable interest
rate. The interest rate is tied to the performance of the stock market index.

Below is the SWOT analysis of Greenwich a famous fast food chain in the Philippines. Examine and analyze
the each statements to determine whether they represent Greenwich’s Strengths, Weaknesses,
Opportunities, or Threats. Write your answer in the space provided.

6. Greenwich offers a wide range of pizza flavors, pasta dishes, and other Italian-inspired
meals, catering to various tastes and preferences of Filipino consumers.
7. Greenwich faces pricing pressure from both local and international competitors, which
may impact profit margins and market share.
8. Greenwich is part of the Jollibee Foods Corporation, one of the largest and most successful
fast-food conglomerates in the Philippines, providing financial stability and support for
growth initiatives.
9. Demand for pizza and fast food can fluctuate seasonally, with periods of high demand
during holidays and special occasions, potentially leading to challenges in inventory
management and staffing.
10. With increasing awareness of health and wellness, Greenwich can explore the
introduction of healthier menu options, such as low-calorie pizzas or gluten-free
alternatives, to appeal to health-conscious consumers.
11. Changes in government regulations related to food safety, labor laws, or taxation can
pose compliance challenges and increase operating costs for Greenwich.
12. Greenwich faces intense competition from both local and international fast-food
chains, as well as independent pizzerias, which may impact market share and profitability.
13. Greenwich has established itself as a leading pizza and pasta chain in the Philippines,
with widespread brand awareness and a loyal customer base.
14. While pizza is popular in the Philippines, over-reliance on this product category may
limit Greenwich's ability to attract customers seeking alternative dining options.
15. Greenwich has the opportunity to expand its presence in untapped markets within
the Philippines, as well as explore opportunities for international expansion in
neighboring countries.

Final Examination in Applied Economics Page 1 of 2

 II. Problem Solving. Read each question carefully before attempting to solve it. Show all your work clearly and
neatly. Partial credit may be awarded for correct steps even if the final answer is incorrect. (5 points each per
correct answer)

1. Conrad acquired his capital of ₱10,000 through loaning. He must pay the loan within three months with a
nominal interest rate of 2%. Calculate the following:

• Interest accrued over the three-month period.

• The monthly payment with interest.
• The monthly payment without interest.

2. A student decides to take out a loan of ₱30,000 from a credit union with an interest rate of 3%, payable
within four months. The inflation rates for the next months are as follows: 1.5% for the first month, 2% for
the second month, 2.5% for the third month, and 1% for the final month. Create a sample interest rate
computation based on this problem.

3. John borrows ₱15,000 from a lending institution with an effective interest rate of 5%, payable in three
months. How much is the interest per month and the monthly payment with interest on John's loan?

III. Essay. Answer the question to the best of your ability. (10 points)

1. Discuss the concept of SWOT analysis in strategic management. In your response, address the following
points:

• Define SWOT analysis and its components.

• Explain the significance of each component (Strengths, Weaknesses, Opportunities, Threats) in

strategic decision-making.

• Discuss the limitations or criticisms of SWOT analysis and suggest ways to overcome them.

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